Maryland

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USDA 

The USDA Loan is a mortgage option available to some rural and suburban homebuyers. USDA Home Loans are particularly favorable to those living in rural or low-income areas. USDA Loans offer $0 money down, lenient eligibility requirements and competitive interest rates - due to the loan being guaranteed by the USDA. USDA stand alone as the only mainstream zero money down program available to borrowers that have not served in the military. 

FHA

A FHA loan is designed to help borrowers with lower credit scores or less cash than would ordinarily be needed for a down payment. FHA loans are designed only for primary residence purchases only. FHA loans are considerably easier to qualify for than conventional mortgages

Conventional

A conventional loan is issued by a private lender, such as a bank, credit union or other financial institution. It typically has stricter credit requirements than a government-backed loan. That's because the lender takes on more risk without a guarantee from a government agency if a borrower cannot pay. There are however some versions that will allow for both a lower down payment and even reduced mortgage insurance.

VA

A VA loan is a mortgage loan that’s issued by private lenders and backed by the U.S. Department of Veterans Affairs. It helps U.S. veterans, active duty service members, and widowed military spouses buy a home. Rates are typically low, down payment can be $0 and there is no monthly mortgage insurance.

 There are four main types of Federally funded or nationally available down payment programs.

1. Grants, which are essentially gifts that never have to be repaid.
2. Loans (second mortgages) that have to be paid down along with with your main mortgage.
3. Loans (second mortgages) with deferred payments, which only have to be paid when you move, sell, refinance.
4. Loans (second mortgages) that are forgiven over a set number of years (often five, but up to 15 or 20), and only need repaying if you move, sell, refinance.

  Some DPA loans are interest-free, some have lower rates than your first mortgage, and others require the same or a higher rate than that.

  The most common of these is the Federal Home Loan Grant.

 The Maryland Department of Housing and Community Development’s (MDHCD’s) Down Payment Assistance and Partner Match Programs provide three forms of assistance through the Maryland Mortgage Program.

1. Zero-percent interest 2nd loans, which typically become payable only when your sell the home or refinance. So there are no monthly payments.
2. Forgivable 2nd loans, which are typically forgiven a bit at a time over several years. So you usually pay nothing unless you move or refinance before the time it takes to fully forgive the loan expires.
3. Cash grants, which never have to be repaid. These are provided only by MDHCD’s partners

Learn more at MDHCD’s website. And look for other homeownership assistance programs in Maryland on HUD’s website.

Most Maryland counties have some type of bond program that gains and loses funding throughout the year.