Purchasing a home is one of the biggest financial decisions you will make, and with Maryland being the birthplace of baseball legend Babe Ruth, it’s not unrealistic to want your home loan decision to feel like a grand slam.
Unfortunately, wading through your financing choices often feels more like a strikeout, but it doesn’t have to be that way. An FHA loan in Maryland is one mortgage option people living in “Little America” find appealing for multiple reasons. Keep reading to see why so many people are choosing a Maryland FHA loan, and see if it's the right choice for you.
FHA loans are great in places like Maryland where the median home cost is above the national average. In Maryland, homes cost an average of $67,800 more, which makes down payments hefty. Luckily FHA loans can help as they don’t require a large down payment. As of April 2019, the total value of FHA loans in Maryland was $387 million, making it a popular choice for Maryland residents.
• FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
• FHA mortgage rates are typically lower than conventional mortgage rates.
• FHA down payment and credit score requirements are typically lower than conventional loans
• Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
• FHA loans are assumable.
Knowing how much you can borrow is an important thing to know before you begin your house hunting process. The maximum FHA loan limit is adjusted annually and may change depending on where you are planning to live in Maryland. For example, the baseline limit is $472,030 but in Baltimore, the limit is $632,500 due to higher cost of real estate. See the link below to get a full list of Maryland FHA loan limits for 2023.
You may be eligible for an FHA loan, if you:
Mortgage Insurance Premium Requirements
Buyers must be able to provide the following information and documents as requested by lenders:
Note: Facts and figures were sourced from the latest statistics available at the time of this writing.