Who Qualifies as a First Time Home Buyer in Maryland?
If you live in Maryland, or you’re considering moving to Maryland, and considering buying a house, it’s easy to become overwhelmed and not know where to begin, especially if you’re a first-time home buyer. You first have to find what suits you best, which may not include your dream home. If you’re a first-time home buyer in the state of Maryland, you may qualify for their first-time home buyer program. In this article, we’ll go over the eligibility requirements, targeted areas, the benefits of being a first-time homebuyer, and how Equity Mortgage Lending can help.
Eligibility Requirements
The main requirement for the first-time home buyer in Maryland is that you have never owned a home in Maryland. Or that you haven’t owned a home in the last three years, as defined by HUD. Those who have separated or divorced may also qualify, as long as they no longer have a title to the joint property, can take themselves off the title before closing, and have not lived in the property in the past three years.
There are other requirements for the program. Those who wish to become a first-time home buyers in Maryland must be 18 years old or older and have a valid social security number. They do not need to be a citizen of the United States to be required for eligibility. The Maryland Mortgage Program also requires the homebuyer’s income to be at or below a certain limit based on household size and location.
What Are Targeted Areas?
Targeted areas are areas in Maryland where homebuyers face fewer restrictions. Not all counties in Maryland have targeted areas, while all properties in other counties may be in a targeted area. Examples of whole counties where all properties are in a targeted area include Allegany, Baltimore, Caroline, Dorchester, Garrett, Kent, and Somerset. Nine counties in Maryland do not have targeted areas.
Benefits of Being a First-time Homebuyer
There are many benefits of being a first-time homebuyer. Some counties in Maryland offer a Mortgage Credit Certificate , which is a federal tax credit program for those buying a house for the first time. As a Maryland homeowner, you can claim an annual federal tax credit that’s equivalent to 25% of your mortgage interest payments during a tax year, which you can use to pay toward the house.
When you’re a homeowner making payments, you have access to an asset that appreciates, especially with proper care and maintenance. An added benefit is that you no longer have to worry about a landlord raising your rent, stretching your budget even more.
Owning a home doesn’t have to be a fantasy. We make it our mission to offer a full range of mortgage programs and meet individuals' diversified lending needs. Get in touch with us today to ask for a quick quote, ask a question, or take the first step to become a homeowner.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.