Are you planning to invest in a home in Maryland? Congrats on your decision! This is an exciting time as you search through the available listings to find the ideal home for you and your family. There are plenty of benefits to becoming a homeowner such as the potential to build your home equity or creating a sense of community. Whatever your purpose might be for buying a home, it is important to look into the Maryland Mortgage Program income limits to see if you qualify.
Since this is probably going to be your biggest purchase yet, it can get understandably overwhelming. There are plenty of loan assistance programs out there that you can take advantage of and the Maryland Mortgage Program is just one of them. This program is designed to make the buying process easier, especially for first-time home buyers, so be sure to take advantage.
Introduction to the Maryland Mortgage Program
This loan assistance program is developed by the Maryland Department of Housing and Community Development. The program is intended for first-time home buyers in Maryland, which provides home loans and down payment assistance. In order to qualify for the program, you have to meet the basic eligibility requirements to be categorized as a first-time home buyer. The qualifications include the following: 1) has not owned a house in the past three years, 2) is purchasing a home within the targeted area, and 3) is a veteran (using their exemption).
If you meet any of the three basic eligibility criteria, then you may enjoy the benefits offered under the Maryland Mortgage Program. It provides you with up to 30 years of fixed-rate mortgages with low interest rates. Aside from that, there are also a number of other financial incentives and assistance that qualified individuals can enjoy. For those who are looking to buy a home in Maryland, these benefits can spell the difference between investing in your first home and opting to rent a home for several years.
Maryland Mortgage Program Income Limits
In addition to the aforementioned eligibility requirements set by the Maryland Mortgage Program, there is also a household income limit put in place. In order to qualify, you must be at or below the specified income limit. The limits specified will vary based on location and the size of the household. It is important to check the Maryland Mortgage Program income limits in your area to ensure that you qualify.
The household income is determined by combining all the income of individuals who are above 18 years of age living within the same household. All types of income are also accounted for – from salaries, cash government transfers, investment gains, allowances, and retirement income, to name a few.
The income limits vary by location as there is also varied cost of living per location. For example, the income limits in Baltimore are different from all other cities within Maryland county. It is also important to note the income limits that are within or outside of the targeted areas. The targeted areas in Maryland have income limits that range from $121,560 (for household size of 1-2) to $141,820 (for household size of 3 or more).
Type of Assistance
The Maryland Mortgage Program provides a lot of benefits and assistance to those who qualify. The most common forms of assistance to be enjoyed would involve the down payment and closing cost for your home purchase. These are two of the biggest expenses that home buyers would have to shoulder during the home acquisition process. With this type of financial assistance, it can alleviate the financial burden on your end as you close the deal on your new home.
Whether you get assistance for the down payment or closing cost, the Maryland Mortgage Program can make home buying more affordable. The assistance is given in various forms such as no-interest loan, grant, or deferred payment. The best part is that this does not need to be repaid so it isn’t an additional burden on your end.
- Fixed-rate loans for a 30-year period
- Competitive interest rates
- Down payment and closing cost assistance
- Reduction of federal taxes
- Maybe combined with other program for more savings
- Home buyer education course
If you want to ease the financial burden of buying a new home, make sure to check the Maryland Mortgage Program income limits in your area. This is an important criteria for qualification and is something that you need to exploit in order to cover the costs involved with being a first-time home buyer.