This is a great time to find a competitive mortgage product in Maryland. Whether you want a fixed rate mortgage or an adjustable rate mortgage (ARM), you can find an option whether you have excellent credit or are building credit. One particularly popular mortgage option is to take out two loans.
In order to put down a high enough down payment to avoid private mortgage insurance (PMI) charges, you may take out an interest-only loan for 15-20 percent of the value of the home for the down payment. With an interest-only loan, you just make monthly interest payments and pay off the principal at the end of the loan term. The second loan is then about 80 percent of the cost in the form of an ARM or fixed-rate mortgage.
State Sponsored Maryland Mortgage Programs
One popular option for a Maryland mortgage is the More House 4 Less Maryland Mortgage Program. This state-sponsored loan program is designed to help first-time homebuyers. Options include 30- and 40-year fixed rate loans with no minimum borrowed contributions. In their Priority Funding Areas (developing neighborhoods), you can even qualify for a CDA loan to finance the construction of a new home.
With the state’s commitment to helping families settle in Maryland and the variety of prime and subprime lenders, there has never been a better time to settle in Maryland. Counties like Chevy Chase and Potomac have less than a half hour commute to Washington, D.C. Montgomery Country has experienced a recent surge in home values, with an increase of more than 60 percent over the last three years. This Maryland area is poised for continued growth, making it an outstanding investment opportunity.
Other Maryland Resources:
Maryland VA Fact Sheet