Mortgage Rates in Maryland
Compare today's average mortgage rates in the state of Maryland. Bankrate aggregates mortgage rates from multiple sources to provide averages for Maryland.
Maryland mortgage overview
If you want to buy a home in Maryland, there are loan options and first-time homebuyer programs that can make homeownership easier and more affordable.
Maryland conventional mortgages: To qualify for a conventional mortgage, you generally must meet the following requirements.
- Credit score of at least 620
- Debt-to-income ratio (DTI) of no more than 45 percent
- Down payment of at least 10 percent of the loan amount
- Pay private mortgage insurance (PMI) if down payment is less than 20 percent
Maryland FHA loans: If you don’t meet conventional loan requirements, you may qualify for an FHA loan. These are backed by the Federal Housing Administration, and the requirements include:
- Credit score of at least 500
- 10 percent down payment if credit score is between 500-579
- 3.5 percent down payment if credit score is 580 or higher
- DTI between 31 percent and 41 percent
Maryland VA loans: Insured by the Department of Veterans Affairs, VA loans are offered to qualifying veterans and active duty members of the armed forces. VA loans don’t require a down payment or PMI, and can be obtained through a VA-approved lender.
First-time homebuyer programs in Maryland
Maryland offers several first-time homebuyer programs that can help those who haven’t owned a home in the past three years find low-interest mortgages. You can also find loans to cover fees and closing costs.
Maryland Mortgage Program (MMP) 1st Time Advantage Loans
Maryland Mortgage Program (MMP) 1st Time Advantage loans assist first-time homebuyers with low-interest, 30-year fixed-rate mortgages. MMP 1st Time Advantage offerings include:
- 1st Time Advantage Direct: A 30-year fixed-rate mortgage with a competitively low rate, a 1st Time Advantage Direct loan does not come with down payment assistance, but does allow the borrower to incorporate outside down payment assistance with the loan.
- 1st Time Advantage 5000: A 30-year fixed-rate mortgage, a 1st Time Advantage 5000 loan comes with $5,000 in closing cost and down payment assistance in the form of a zero-percent second mortgage, which must be repaid when the first mortgage term ends or when you refinance, sell or transfer the home.
- 1st Time Advantage 3% Loan: A 30-year fixed-rate mortgage, a 1st Time Advantage 3% Loan comes with down payment assistance equal to 3% of the loan principal in the form of a zero-percent, deferred second mortgage.
1st Time Advantage loans are available to first-time homebuyers, but also to repeat buyers if the borrower is buying in a targeted area and has already sold their current home. The program is also open to military veterans provided they meet certain eligibility requirements.
MMP Flex Loans
The MMP also offers Flex loans, which, similar to 1st Time Advantage loan programs, include Flex Direct, Flex 5000 and Flex 3% Loan, along with two grants:
- Flex 3% Grant: A grant equal to 3 percent of the first mortgage, with no repayment requirement
- Flex 4% Grant: A grant equal to 4 percent of the first mortgage, with no repayment requirement
Maryland SmartBuy is available to first-time homebuyers who have at least $1,000 in student loan debt. Through the program, borrowers can get up to 15 percent of the home’s purchase price, up to $40,000, to pay off student loan debt. The debt must be paid when the home is purchased.
Initially only available for homes owned by the State of Maryland, SmartBuy has been expanded to include any home for sale in the state, provided it meets MMP requirements, and it is offered only through participating lenders.
Maryland mortgage refinancing
With interest rates at record lows, Maryland borrowers may be interested in refinancing their mortgage into a new one with a lower rate. Use Bankrate’s mortgage refinance calculator to see how much you can save by lowering your rate.