ARE THERE SPECIAL LOANS FOR 1^st TIME HOME BUYERS?

If you are first-time homebuyer, money doesn't have to grow on trees in order for you to buy the home of your dreams. The CDA loan offers first-time buyers the ability to buy more home for less. The CDA loan program offers a variety of loan options (FHA or Conventional loans), with a variety of interest rates and loan terms allowing borrowers more flexibility and more buying power.

What are the requirements?

• You must either be a "first-time homebuyer,” which is defined as someone who has not owned a principal residence in the last three years, OR
• You must be purchasing a home in a "targeted area" - Allegany County, Baltimore County, Caroline County, Dorchester County, Garrett County, Kent County, or Somerset County (portions of other counties are targeted areas - click here to refer to the map).
• You must receive homebuyer education by attending a homebuyers workshop.  There is a nominal charge, but the information is invaluable. (In Anne Arundel, Baltimore, Garrett, Harford, Montgomery & St. Mary's counties, you must attend a homebuyer workshop and obtain a housing counseling certificate prior to making an offer and ratifying a contract).

What type of home I can purchase?

• Townhouses, detached or semi-detached homes, and condominiums are eligible houses.  Modular or manufactured homes that meet the State seal of approval for code compliance may also be financed.

Must I live in the home I purchase?

• Yes, CDA loans are only available for owner-occupants.

Do I need to have good credit in order to get a CDA loan?

• Yes, good credit is required.  The CDA loan is underwritten using normal mortgage industry credit standards. 

Is closing cost assistance allowed with a CDA loan?

• Yes, there are several options for closing cost assistance available.

What types of loans are available through the CDA loan program?

• 30-year fixed rate;
• 40-year fixed rate with no minimum borrower contribution; or
• 35 year fixed rate with interest-only payments for the first 5 years.

CDA LOAN & INCOME LIMITS

CITY/COUNTIES	MAXIMUM SALES PRICE	INCOME LIMITS
Anne Arundel, Baltimore, Carroll, Harford, Howard & Queen Anne counties	Conventional: $427,399   FHA: $360,905	1 or 2 person Family: $79,352 or less or 3 or 4 person Family: $91,000
Baltimore City	Conventional: $522,363   FHA: $360,905	1 or 2 person Family: $91,080 or less or 3 or 4 person Family: $106,260
Frederick, Montgomery & Prince George's counties	Conventional: $429,620   FHA: $362,790	1 or 2 person Family: $92,106 or less or 3 or 4 person Family: $105,651

What is the interest rate for CDA loans?

• There are currently 5 low-interest rate mortgages available:
  • a 0-point product;
  • a 0-point product with a 2% closing cost assistance grant;
  • a 1-point product;
  • a 2-point product; and
  • a 4-point product.
• The rates are subject to change. Ask your lender about current CDA loan rates.

How do I apply for a CDA loan?

• You may apply online with Michelle Mathews of Prosperity Mortgage.

FINANCING YOUR NEW HOME

• 15-Year, 30-Year, or a Biweekly Mortgage?
• What is an Adjustable Rate Mortgage (ARM)?
• What is an interest-only loan?
• What are closing costs?
• When should I pay points on a loan?
• Can I deduct points on my income taxes?