Maryland FHA Loans
Maryland, just like the rest of the country, is experiencing a sharp decline in housing prices. If you've been thinking about buying a house but are still putting it off, you might want to reconsider that decision. With many experts forecasting an end to our recent economic trouble, housing prices are sure to make a rebound soon. But taking advantage of the current low prices on housing can be a somewhat overwhelming and even frightening prospect. For most people, buying a house is the largest financial investment that they ever make in their life. Ensuring that you've investigated all the options and are receiving the best possible financing for your situation is imperative to your success and comfort as a homeowner, and very often, a Maryland FHA loan can be just the right solution.
Why Choose and FHA Loan?
The Maryland FHA loan program, administered by the Federal Housing Administration, provides loans for people who may not have the credit scores necessary to obtain a mortgage through conventional means or may not have the cash on hand necessary to make the large down payment that most traditional loans require. The loan program allows buyers to purchase single family homes or multi-unit dwellings as long as the loan amount does not exceed that year's maximum loan value, which is set each year and is based on the median housing prices in the country.
Maine FHA Loan Limits
The 2009 maximum loan value for Maryland FHA loans is $271,050 for a single family dwelling. If you live in a high cost of living area, however, the amount is adjusted based on the cost of living in your city or county. While some parts of Maryland is capped at the baseline $271,050, many places in the state have high cost of living ares. For instance, the Maryland FHA loan maximum in Baltimore is $560,000, and in Prince George County, the maximum is $729,750. Again, these amounts are for single family dwellings, and you should check with your lender to ensure that you have the right maximum loan value for your county and your own situation.
It's important to note that Maryland's FHA home loan program doesn't directly provide loans. It works instead with your bank of choice to guaranty your loan and give the bank a little more confidence and protection when it makes the loan to you. The guaranty is in place because FHA loans are different than others-- rather than the traditional 20% down payment, Maryland FHA loans only require 3% (and closing costs can be absorbed into the loan).
Your credit score doesn't need to be as strong to qualify for the FHA program either, and often, clients who have filed bankruptcy can even qualify for the program provided their credit has been clean since the bankruptcy discharge. Essentially, the Maryland FHA loan program provides the benefits of a traditional home loan, but with terms that are much easier to stomach in today's economic climate.