FHA Loan Limits in Maryland For 2022

FHA Loan Limits in MarylandIf you’re wondering what the FHA loan limits in Maryland are and what FHA maximum loan amount is, you’ll be glad to know that they vary depending on the county in which you plan to purchase a home. The FHA loan limit varies from $420,680 (in counties: Allegany, Washington, Wicomico, Worcester)  to $970,800 (in counties such as Montgomery and Calvert) for a single-family home. But in some higher-priced areas of the state, such as Montgomery and Prince George’s counties, the limit is higher at $765,600.

Whether you’re a first-time homebuyer or you’re looking to move up to a bigger home, an FHA loan may be a good option for you. With lenient credit requirements and low down payment options, FHA loans make it possible for more people to become homeowners.

If you think an FHA loan might be right for you, contact a local lender to get started. They can help you determine if you qualify and walk you through the loan application process.

FHA Loan Limits in Maryland by County For 2022

County Name Single Family 2 Units 3 Units 4 Units Median Home Price
ALLEGANY $420,680 $538,650 $651,050 $809,150 $146,000
ANNE ARUNDEL $583,050 $746,400 $902,250 $1,121,250 $507,000
BALTIMORE $583,050 $746,400 $902,250 $1,121,250 $507,000
BALTIMORE CITY $583,050 $746,400 $902,250 $1,121,250 $507,000
CALVERT $970,800 $1,243,050 $1,502,475 $1,867,275 $975,000
CAROLINE $420,680 $538,650 $651,050 $809,150 $224,000
CARROLL $583,050 $746,400 $902,250 $1,121,250 $507,000
CECIL $477,250 $610,950 $738,500 $917,800 $415,000
CHARLES $970,800 $1,243,050 $1,502,475 $1,867,275 $975,000
DORCHESTER $420,680 $538,650 $651,050 $809,150 $196,000
FREDERICK $970,800 $1,243,050 $1,502,475 $1,867,275 $975,000
GARRETT $420,680 $538,650 $651,050 $809,150 $205,000
HARFORD $583,050 $746,400 $902,250 $1,121,250 $507,000
HOWARD $583,050 $746,400 $902,250 $1,121,250 $507,000
KENT $420,680 $538,650 $651,050 $809,150 $233,000
MONTGOMERY $970,800 $1,243,050 $1,502,475 $1,867,275 $975,000
PRINCE GEORGE’S $970,800 $1,243,050 $1,502,475 $1,867,275 $975,000
QUEEN ANNE’S $583,050 $746,400 $902,250 $1,121,250 $507,000
SOMERSET $420,680 $538,650 $651,050 $809,150 $325,000
ST. MARY’S $420,680 $538,650 $651,050 $809,150 $328,000
TALBOT $431,250 $552,050 $667,350 $829,350 $375,000
WASHINGTON $420,680 $538,650 $651,050 $809,150 $230,000
WICOMICO $420,680 $538,650 $651,050 $809,150 $325,000
WORCESTER $420,680 $538,650 $651,050 $809,150 $325,000

 

If you’re looking for an FHA loan in Maryland, there are a few things you need to know. First, you’ll need to find a lender that’s approved by the FHA. There are many FHA-approved lenders out there, so this shouldn’t be too difficult. Once you’ve found a lender, you’ll need to fill out an application and provide some documentation, such as proof of income and employment. The FHA has strict guidelines for these loans, so it’s important that you have all of your ducks in a row before applying. If you’re not sure whether or not an FHA loan is right for you, consider filling up this form and we will find you a HUD-approved lender in Maryland who can do FHA loans.

Pros and Cons of FHA Loans in Maryland

FHA loans are available to all types of borrowers, including first-time buyers, repeat buyers, and even those with low or bad credit. However, there are some drawbacks to FHA loans, such as the following:

  • Borrowers must pay for mortgage insurance. This insurance protects the lender if the borrower defaults on their loan. Mortgage insurance is paid for by the borrower as part of their monthly payment and can add up over time.
  • There are restrictions on how much you can borrow. FHA loans have lending limits that vary by county. In general, you can borrow up to 96.5% of the purchase price of a home with an FHA loan.
  • You may need to get approved for a new loan if you want to make major renovations to your home. The FHA has a program called the 203(k) loan that allows borrowers to finance the cost of renovations into their mortgage.

How do You Qualify for an FHA Loan in Maryland?

To qualify for an FHA loan in Maryland, you’ll first need to meet the standard eligibility requirements set forth by the Federal Housing Administration. These include having a steady income and employment history, a good credit score, and sufficient savings for a down payment and closing costs.

In addition to these general requirements, there are also specific requirements that must be met in order to qualify for an FHA loan in Maryland. These include:

  1. The property must be your primary residence
  2. The property must be a single-family home, a duplex, a three- or four-unit home, or an approved condominium
  3. The maximum loan amount cannot exceed the one above
  4. A valid government-issued photo ID (driver’s license, passport, etc.)
  5. Proof of income (W-2 forms, pay stubs, tax returns, etc.)
  6. Bank statements and asset information (savings, checking, investments, etc.)
  7. Mortgage loan application
  8. Homeowners insurance policy
  9. A signed purchase agreement for the home you’re looking to buy
  10. An appraisal report from a licensed appraiser
  11. Credit report from all three major credit reporting agencies (tri-merge): Equifax, Transunion and Experian

To check your credit score for free you can get once per year free credit from Annual Credit Report

How FHA Loan Limits in Maryland Are Calculated?

When considering an FHA loan, it is important to know how the FHA loan limits in Maryland are calculated. The FHA maximum loan amount can be borrowed from the federal government and is based on median home prices in the county where the property is located. In order to get an FHA loan, borrowers must have a credit score of 580 or higher and a down payment of at least 3.5%.

FHA loan limits in Maryland are calculated each year and typically released in December. They take into account changes in average home prices across the U.S., as well as any increases or decreases in the cost of living. For example, if home prices in a particular county have gone up by 5% since the previous year, the loan limit for that county will also increase by 5%.

The HUD adjusts FHA loan limits in Maryland every year and publishes the new figures in the Federal Register. The minimum loan limit is 65% of the national conforming loan limit of $647,200. The maximum loan limit is 150% of the national conforming loan limit. In counties where home prices are higher than the national average, the FHA allows for higher loan limits.

For 2022, the maximum FHA loan limits in Maryland are $420,680, which is 65% of the national conforming loan limit of $647,200.

FHA loan limit equation: $647,200 * 65% =  $420,680 

What Qualifies as First-time Home Buyer in Maryland?

In order to qualify as a first-time home buyer in Maryland, you must meet certain criteria. First and foremost, you must not have owned a home within the past three years. Additionally, you must be a U.S. citizen or a legal resident alien, have a valid Social Security number, and demonstrate that you are capable of paying the mortgage on your new home.

FHA Loan Application checklist For MarylandYou will also need to have a down payment for your new home. The minimum down payment required is 3.5% of the purchase price of the home, but if your credit score is below 580, you will need to put down 10%.

Maryland Down Payment Assistance Program

The Maryland Department of Housing and Community Development (MDHCD) has a Mortgage Program that may assist homebuyers. One of the following DPA alternatives is available to borrowers taking out the 1st Time Advantage home loan:

  • 1st Time Advantage 6000: A $6,000 loan for down payment and closing costs that must be repaid when the home is sold, refinanced, or transferred.
  • 1st Time Advantage Loans: These are second mortgages with no interest that are worth 3%, 4%, or 5% of the purchase price of the property.
  • HomeStart: A 30-year deferred mortgage with 0% interest is available up to 6% of the property’s purchase price. Only borrowers with income below 50% of the area median Income (AMI) qualify.

Borrowers who lack a 1st Time Advantage loan can seek down payment aid from additional alternatives, including the MMP Flex Loans and Partner Match programs.

MDHCD’s website provides further information. On HUD’s website, look for additional Maryland homebuyer assistance programs.