Loan Programs

A Fixed-Rate Mortgage applies the same interest rate toward monthly loan payments for the life of the loan. Fixed-rate mortgages generally have higher interest rates than ARMs because there is more risk for the lender. For example, a lender can offer a 30-year fixed loan to a homebuyer at a 6% interest rate. The loan will remain at the 6.0% interest rate, even if the market rate rises to 8%. Fixed-Rate Mortgage benefits include:

• No change in monthly principal and interest payments regardless of fluctuations in interest rates.
• More stability may give you "peace-of-mind".

Adjustable Rate Mortgage (ARM) applies an adjustable interest rate toward monthly loan payments. The homebuyer's principal and interest payment will adjust periodically based on fluctuations in the interest rate. For example, a lender could offer a 30-year ARM loan to a homebuyer at an initial 6% interest rate. During an adjustment period for the ARM loan, the market interest rate could rise to 8.0%, resulting in a significantly larger interest payment. Similarly, the market interest rate could decrease to 5.0%, resulting in lower interest payments.

• Initial payments are lower than fixed rate mortgages.
• Easier qualification for higher loan amounts because of lower initial interest rates.
• Interest rate caps limit the maximum interest payment allowed for the loan.
• Lower interest payments if the interest rate drops over time.

The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have low down payments, which typically run around 3 percent, and have relatively easy requirements. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcies do not necessarily disqualify borrowers from using this program! In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to the homeowner. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

This is a mortgage purchase program for 1^st time home buyers(fed definition) Fixed rate, 30 yr loans Used with FHA, VA or USDA financing.

Borrower’s can get Down Payment & Settlement Expense Loan Program. Money the state has appropriated to lend to 1^sttime home buyers at 0% deferred, for them to use toward their settlement expenses. A Loan of $3500 @ 0%, deferred until 1^st trust loan payoff, used for Closing costs or Down Payment. Or the Borrower can get a 2% or 3% GRANT toward closing costs(not DP n FHA),there is a higher interest rate for the grant programs. Other community seconds and/or grants can be used in conjunction with CDA Down Payment  assistance.

Through “House Keys 4 Employees” and “Smart Keys 4 Employees” Additional assistance of up to $15,000 may be available for qualified buyers.

Allowable 580 credit scores

Home buyer education is required.  In some areas like Baltimore City, Baltimore  County, Anne Arundel County & Harford County they have special requirements, possibly having the counseling PRIOR to entering into a contract, you must review the workshop info sheet. Not having the counseling before writing the contract can kill a deal in some jurisdictions. Also, if pursuing the DSELP, must be from one of the HUD approved agencies, on the sheet.

At the moment this is a niche product, but that can change at any time. They routinely change the rules, sometime good and sometimes not so good, so you need to stay up with it. In 2008, I lived on CDA, Haven’t done one in about 9 months because of the rate, and lack of MHF funding.

This is a Maryland Mortgage loan that your lender must be approved to offer