When it comes to buying or refinancing a home, there are many factors to consider. One of the most important is the amount you can borrow from a lender. In Baltimore County, the amount you can borrow depends on the type of loan you are applying for and your credit score. The most common type of loan is an FHA loan, which is backed by the Federal Housing Administration. The minimum down payment requirement for an FHA loan is 3.5% of the purchase price.
However, if your credit score is lower than 580, the down payment requirement will be 10%. There are many FHA lenders in Maryland that offer FHA loans, but not all of them participate in every FHA loan option available. In addition to the down payment, other costs associated with an FHA loan include property insurance and private mortgage insurance (PMI). Property insurance protects the home and its contents from fire, theft, and other disasters. PMI is mandatory for homebuyers with a down payment of less than 20% of the purchase price and protects the lender in the event that the borrower is unable to repay the loan.
The PMI can be reduced once the borrower has at least 20% of the home equity. The Baltimore County Federal Employee Credit Union has been helping its members buy or refinance homes for more than 55 years. It's important to talk to a lender early in the process, as this can help you get approved by the FHA. An eligible property is an owner-occupied single-family home or a multi-family property with up to four rental units in Baltimore County. If you're looking for help finding an FHA lender in your area, complete this FHA loan scenarios form with basic information about loan scenarios. The Baltimore County Federal Employee Credit Union is not responsible for the information contained on this site.
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