Current mortgage interest rates in Maryland

Refinance rates in Maryland

Mortgage options in Maryland

• Conventional mortgages: These mortgages require a credit score of 620 or better, a debt-to-income ratio (DTI) of no more than 45 percent and a down payment of 3 percent to 5 percent.
• FHA loans: If you don’t meet conventional loan requirements, you might qualify for an FHA loan. These are insured by the Federal Housing Administration, and the requirements generally include a credit score of at least 580, a DTI ratio of no more than 50 percent and a down payment of 3.5 percent.
• VA loans: Guaranteed by the Department of Veterans Affairs, VA loans are offered to qualifying military veterans, active-duty members and their spouses. VA loans don’t require a down payment or mortgage insurance and can be obtained through a VA-approved lender.
• USDA loans: For Marylanders living in rural areas, loans guaranteed by the U.S. Department of Agriculture offer mortgages with no down payment. Generally, you’ll need a credit score of at least 640 to qualify. You’ll also only be able to purchase property in specific, rural areas and your income has to fall below area-specific limits.

First-time homebuyer programs in Maryland

As a Maryland first-time homebuyer, consider these programs that can help you obtain a low-interest mortgage. You might also find loans or assistance to cover some of your down payment 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
• 1st Time Advantage 6000: A 30-year fixed-rate mortgage with $6,000 in closing cost and down payment assistance in the form of a zero-percent, deferred second mortgage
• 1st Time Advantage 3%, 4% and 5% Loans: 30-year fixed-rate mortgages with down payment assistance equal to 3 percent, 4 percent or 5 percent 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.

Maryland SmartBuy

Maryland SmartBuy is available to 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. SmartBuy is available through any program-eligible home in the state and it’s offered only through participating lenders.

How to find the best mortgage rate in Maryland for you

When you shop for a mortgage, your credit score and debt-to-income (DTI) ratio matter. The better your credit and the lower your DTI ratio, the better interest rate you’ll get. Likewise, if you can put up more money for a down payment, you’ll get a more favorable rate.

Begin by comparing offers from mortgage lenders in Maryland. Consider whether you’ll qualify for a first-time homebuyer loan, which often comes with a more affordable rate. The eligibility criteria for this type of loan usually involves income and home purchase price limits, so you’ll need to take where you’re buying into account as you explore your options.

Additional Maryland mortgage resources

• Review Maryland mortgage lenders
• Maryland first-time homebuyer assistance programs
• Buying a house in Maryland: A how-to
• Best homeowners insurance in Maryland