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ARE THERE SPECIAL LOANS FOR 1st 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

Creig Northrop & The Northrop Team - Carroll County Office: 25 Liberty Rd, Sykesville, Maryland 21784
Frederick County Office: 1700 King Fisher Drive, Suite 7 Frederick, Maryland 21701
Howard County - Clarksville Office: 12345 Wake Forest Road, Suite F Clarksville, Maryland 21029
Howard County - Columbia Office: 5570 Sterrett Place Suite 310 Columbia, Maryland 21044
Montgomery County - Rockville Office: 11620 Rockville Pike, Rockville Maryland 20852
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