This loan program is unique in that it allows first-time buyers to purchase a house with as little as 3% down, far lower than the traditional 20% down required by most lenders. The loan also offers up to 5% in closing cost assistance, making it easier for those who may not have the full amount for a down payment or closing costs to purchase a home. Furthermore, the loan does not require the buyer to pay private mortgage insurance as long as they stay within the program's guidelines.
The 1st Home Advantage Mortgage Program was created to provide much needed assistance to qualified first-time homebuyers in Maryland. The loan is targeted towards those who may not have the financial ability to put 20% down on a conventional loan. It allows them to purchase a home with a smaller down payment and still get favorable terms. This is beneficial to those looking to enter the housing market for the first time, but may not have the means to do so with a traditional mortgage.
The 1st Home Advantage Mortgage Program has several requirements that must be met in order for one to qualify for the loan. First and foremost, the buyer must be a first-time homebuyer, meaning they have not owned a primary residence in the last 3 years. Furthermore, the home must be used as a primary residence and occupants must be able to pay the mortgage debt service-to-income ratio. Finally, buyers must have a credit score of at least 660 and meet the loan limits set by the state.
The Maryland 1st Home Advantage Mortgage Program can be a great tool for first-time homebuyers looking to purchase a home in the state. The loan allows applicants to purchase a house with a much lower down payment than is traditionally required, negating the need for a larger sum of money upfront. Furthermore, it offers up to 5% in closing cost assistance, which can be useful for those without the funds to cover closing costs. Finally, the loan does not require private mortgage insurance, potentially saving buyers money in the long run. In short, this specialized loan program is beneficial to those who may not have the means to purchase a home using a traditional mortgage.
This article was contributed on Nov 09, 2023