Maryland Low Interest Mortgage Programs

By AJ Fanter
Local Lender Columnist
Aug 30, 2006
The Maryland CDA (Community Redevelopment Administration) offers a number of state sponsored mortgages, each featuring low interest rates, through their More House 4 Less program.

There are currently three primary fixed, below-market interest rate mortgages available:

1. 30-year fixed interest rate loan
2. 40-year fixed interest loan with a no-minimum down
3. 35-year loan that has interest-only payments for the first five years of the mortgage, which is ideal for a first-time homebuyer.

Qualifying for a CDA Low Interest Mortgage

In order to qualify for these special Maryland CDA low-interest mortgages, you must plan on making the home your primary residence. In other words, these low-interest mortgage products are not available for use on investment properties. In addition to living in the home you are purchasing, the home must either be an existing home or a new home that is located in one of Maryland's designated PFA or "Priority Funding Areas."

Priority Funding Areas in Maryland

According the CDA, a PFA is essentially an area where the State of Maryland, or a local city or community government, has made an investment with the goal of encouraging redevelopment and/or supporting what the CDA defines as "sensible economic and residential growth." According the CDA site, Baltimore City, as well as many of the areas inside the Baltimore and Washington, D.C. beltways are PFAs. This program not only helps to conserve farmland and open spaces, but it serves to rejuvenate Maryland's older communities.

If you are looking to purchase a home in Maryland, and are looking for a great interest rate on your mortgage, this is one program worth investigating.

Sources:
More House for Less, Maryland Community Development Association.

About the Author
AJ Fanter is a freelance writer based in Reno, NV.