Maryland FHA Loans
We are helping Maryland residents to find a low down payment FHA home loan. Here, you will find some basic information needed to understand what an FHA Loan is, what the qualifications are as well as the FHA loan limits in Maryland. If you qualify, an FHA loan is a great way for borrowers to get into a home with a small down payment. We can help you regardless as to whether you live in Baltimore, Columbia, Germantown, Prince George County or anywhere else in Maryland.
Maryland FHA Mortgage Benefits
- FHA mortgages allow for low credit scores.
- FHA mortgages require very low down payments.
- FHA mortgages never have pre-payment penalties.
- FHA mortgages help borrowers to find their dream home and are often the choice for first time home buyers.
- Down payment assistance is permitted and may be available through Dream Home Financing.
- You may receive a gift towards your down payment from a family member.
- There are no income limits.
- You can get approved for an FHA loan with a recent chapter 13 bankruptcy.
George Makoutz – General Manager of Novus Home mortgage in Maryland – “FHA loans are perfect for first time home buyers who may have credit challenges or a low down payment.”
Maryland FHA Loan Requirements
- FHA Employment Requirements– You must have a full two year work history to qualify. If you are self employed, you would need to have owned your business for two years.
- Residency Requirements – The home you plan to purchase must be occupied as your primary residence. Multi family buildings up to 4 units are eligible as long as you occupy one of those units are your own residence. Investment properties are not allowed.
- FHA Income Documentation – You must show recent pay stubs, tax returns for the past two years, and bank statements for the past two months. If you are self employed, you will need to also document your income.
- FHA Mortgage Down Payment Requirement – The minimum down payment requirement for an FHA mortgage is 3.5% with a credit score of 580 or higher. Lower credit scores require a down payment of 10%. Read more about FHA down payment information
- FHA Credit Score Requirement – You can qualify for an Maryland FHA mortgage with a credit score of 580 or more. You may also get qualified with a credit score as low as 500, but you will likely have to put as down as much as 10%.
- FHA Mortgage Insurance (MIP) – You will be required to have an FHA mortgage insurance premium (MIP). You may read more about what this insurance will cost at our full FHA mortgage page.
Types of FHA Loans Available in Maryland
There are multiple FHA loan products available for purchasing or refinancing a home. Not all Maryland mortgage lenders offer all of these but we can help you regardless of what your needs are.
- FHA Purchase – For the purchase of your primary residence.
- FHA Refinance – To refinance an existing FHA loan or any type of mortgage into an FHA loan.
- FHA 203k Rehab – This loan allows you to purchase or refinance your home while also borrowing the money needed to rehab or update the property.
- FHA Construction Loan – With this program, you can purchase property and also build your dream home all with just one FHA mortgage.
- FHA Streamline Refinance – This loan will allow you to refinance your FHA loan without an appraisal or income documentation. Read more here.
- FHA Cash Out Refinance – You can refinance your home and cash out equity up to 80% of the appraised value.
If you have questions about any of these FHA loan products, simply contact us here.
FHA Loan Limits in Maryland
Homebuyers are limited to how much they can get approved for by their debt to income ratio (DTI), but also the loan limits or maximum loan amounts available in each county.
Every year the Federal Housing Administration provides updated loan limits for the following year. The limits are higher for multi family homes than they are for single family homes. Review the Maryland FHA Loan Limits by County See how much you can borrow
How to Apply and Get Approved
The first step in securing a pre-approval is to complete the lender or mortgage broker loan application. It is important to complete the application fully to avoid any delays.
Next, your lender will pull your credit to import your debt or liabilities into the application. It is at this point where you can receive an initial pre-approval.
The loan officer will ask you to provide all of the required documentation to validate your eligibility and as supporting documents to provide to the underwriter for final approval.
Once your loan officer has submitted the full loan package to the underwriter, it will take a couple of days for review.
The underwriter may have some additional requirements for you to fulfill. Some of these include more pay stubs or bank statements. Getting an appraisal will also be on the list of requirements and that appraisal must be equal to or greater than the purchase price.
The entire process if managed properly can take less than 30 days.
FHA Loan Frequently Asked Questions – FHA FAQ
Q: What is the FHA down payment requirement?
A: You will need to put down 3.5% for an FHA loan. More if your credit scores are extremely low.
Q: Do FHA loans require mortgage insurance?
A: Yes, if you are putting down less than 20%, you will need to pay monthly MI (Mortgage Insurance)
Q: Can veterans apply for an FHA loan?
A: Yes, but they will need to submit a DD form 212 with your application. We believe the best program for veterans is the VA Loan.
Q: What are the FHA mortgage loan fees?
A: The fees are regulated but we recommend that you contact an FHA lender here to outline all of the fees that may pertain to you.
Q: What is the FHA Loan limit in my area?
A: We recommend that you discuss this with one of our lenders or click the link above where you can research the limits in your area.
Q: Can I get an FHA loan with bad credit?
A: Yes, you can but the down payment requirement may be higher as well as the interest rate.
Q: Can I get an FHA loan on more than one property?
A: Typically no but there are some circumstances where it would be allowed. Contact one of our FHA Lenders to find out more.
Q: Are gift funds permitted to be used towards the down payment?
A: Yes, a gift can come from a relative, close friend, your employer, a charity, or a government agency.
We are able to help you to find an FHA loan with the best FHA lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.