Maryland Mortgages & Home Loans

At Griffin Funding, we simplify the process of buying a home in Maryland by providing a streamlined application process and excellent customer service. There are many types of mortgages available to suit your unique needs. Whether you’re looking for a loan with a smaller down payment to refinance your current home or this is your first time buying a house, we can help you make your goals a reality.

Reach out today and we can help you find a Maryland mortgage program that aligns with your financial situation and home buying goals.

Areas We Serve

Whether you’re looking for a home loan in Baltimore, an investment property loan near the beach, or anywhere in between, Griffin Funding provides loan services for all types of Maryland home buyers, including those looking for property in:

However, you’re not just limited to those locations. Wherever you choose to call home, as your Maryland mortgage lenders, we can pair you with the best loan that suits your individual financial needs.

How Do Home Loans Work in Maryland?

If you’ve purchased a home before, the process will be quite similar to buying a house in any other state. However, if you’re a new home buyer, you’ll need to understand the home loan process.

Once you have obtained a loan and purchased a home, you will make monthly mortgage payments. These payments are split up into four categories:

• Principal: This portion of your loan is paid down each payment.
• Interest: The interest rate will be charged monthly and depends on your lender and the type of home loan you choose.
• Taxes: Each month, you’ll pay 1/12 of your yearly property tax bill based on the city in which you live.
• Insurance: If your mortgage program and/or lender require you to have insurance, it should cover your home against fires, theft, and accidents.

The process to obtain a loan is straightforward, and our loan officers will help you every step of the way. It starts off with you finding a home that you’d like to purchase and applying for a home loan. The application will request information from you, such as your income, credit history, and more, to determine whether or not you qualify for a loan.

Once you’ve agreed to the terms of the loan, it is pre-approved and finalized by our team. At this point, you can request a copy of your pre-approval letter from us to prove to the sellers that you are ready to buy their house and can afford it.

Requirements to Buy a Home in Maryland

The requirements to purchase a home in Maryland with a home loan will depend on the type of loan you choose, but you should be prepared to understand and deal with each of the factors listed below.

Meet the minimum credit score

Your credit score is an important factor for deciding whether or not you are a risk to the lender. The higher your credit score, the less of a risk you are, and the more easily you’ll be able to obtain a loan. Griffin Funding is proud to offer flexible loan requirements, including accepting lower credit scores. For example, you can qualify for some of our home loans with a FICO score as low as 500.

Income verification

Lenders want to make sure that you have enough money coming in to pay your mortgage each month. During the underwriting process of applying for a home loan, your lender will verify your income through W2s, bank statements, or any other way they see fit to ensure that you can pay back your loan.

Debt-to-income (DTI) ratio

Your DTI is how much money you have going out each month versus how much you have coming in. If you make $2,000 per month from your job and owe $500 in debts each month for things like your car loan and credit card payments, you have a DTI of 25%. Most lenders want to see a DTI ratio at or below 43% (including your full mortgage payment).

Down payment

Before you can get approved for your loan, you’ll need to save money for your down payment. Down payments typically can range anywhere from 3% to 20%, depending on the lender and the type of home loan, so it’s important that you save enough money before applying.

Even if you are a veteran and qualify for a zero down payment loan, you’ll still need to save up for closing costs and other expenses associated with purchasing a home. The more you put down on the house, the less you’ll need for a loan. A higher down payment also means less risk for the lender, which in turn can lead to a lower rate and better terms.

While down payments are required in most cases, there are some cases where you may not need to pay anything upfront, like with VA loans and USDA loans. Griffin Funding also strives to offer more flexible loan options to cater to self-employed individuals, first-time home buyers, and veterans.

Maryland Mortgage Rates and Fees

Maryland home loan rates and fees vary depending on the loan and the lender.
Some fees that may be associated with your Maryland home loan include:

• Appraisal fee
• Home inspection fee
• Credit report fee
• Processing costs
• Underwriting fee
• Title fees

Mortgage rates

One of the primary factors impacting mortgage rates in Maryland is the current state of the economy. The Federal Reserve raising or lowering the federal funds rate directly affects the mortgage rates that lenders across the industry are able to offer. Other factors that affect Maryland mortgage rates include:

• Your income
• Your credit score
• Your DTI ration
• Type of loan
• Loan amount
• Down payment amount

Maryland Mortgage Programs

Our Maryland mortgage programs include:

Our Maryland Mortgage Programs

DSCR Loans: DSCR loans allow real estate investors and mortgage brokers to qualify for financing based on their debt service coverage ratio (DSCR) rather than through traditional means. By calculating the DSCR, lenders can measure a potential borrower’s operating income in relation to their mortgage debt, and thus determine whether they will be able to repay a loan. A DSCR mortgage is a type of investment property loan.

Asset-Based Loans: When you take out an asset-based loan, you’re borrowing against the value of your assets. The more valuable your assets are, the more financing you can receive. This enables borrowers to tap into the equity of their assets and access financing.

Bank Statement Loans: Bank statement loans, or self-employed mortgages, are ideal for self-employed individuals because they allow you to qualify for a mortgage with your bank statements instead of income.

Home Equity Loans: With a home equity loan, you can take the equity you’ve built up through paying down the mortgage on your current home and get a lump sum or line of credit to use however you want.

FHA Loans for First-Time Home Buyers: FHA loans can be a good option for first-time home buyers who aren’t able to afford a 20% down payment. Instead, you can put down as little as 3.5% and get approved for an FHA loan.

VA Home Loans: VA loans allow qualifying service members, veterans, and surviving spouses to get a loan with a guarantee from the Department of Veteran Affairs. With these loans, veterans and military personnel can receive lower interest rates with no down payment required.

USDA Loans: Depending on where the home is located, you may qualify for a USDA mortgage loan reserved for homes in qualifying rural areas. Since these loans are guaranteed by the USDA, buyers can make a purchase without a down payment.

ITIN Loans: Where foreign nationals can qualify for a mortgage on a house in Maryland without needing a Social Security Number.

Conventional Loans: Conventional loans are a very common and widely available type of Maryland mortgage. Conventional loans offer highly competitive terms and mortgage rates for qualifying home buyers in Maryland. Conventional loan rates and terms are based on your credit score, down payment, and other factors.

Private Money Loans: Private or hard money loans allow you to quickly access funds for investing in real estate. This type of financing offers fast financing and a lot of flexibility, making it a good option for investors in need of a bridge loan or other short-term loan options.

Not sure which loan is right for you? Talk to one of our loan officers to learn more about mortgages in MD. We can guide you through the process of how to apply for a home loan in Maryland and make the process as stress-free as possible for you. After all, buying a home should be a positive experience.

Buying a House in Maryland

Buying a house in Maryland is straightforward thanks to our flexible underwriting requirements and our knowledgeable loan officers. We provide competitive rates to our borrowers no matter their unique financial situation.

If you’re a new home buyer, follow these simple steps to buying a house in Maryland:

1. Save for a down payment (if the type of loan you’re applying for requires it)

2. Apply for a home loan with Griffin Funding and get pre-approved

3. Find a house

4. Make an offer on the house

5. Complete the mortgage underwriting process

6. Close on your new home

Maryland First-Time Home Buyer Programs

Some mortgage programs available to first-time home buyers in Maryland include:

• Maryland Mortgage Program: The Maryland Mortgage Program (MMP) is designed to give home buyers access to competitive rates and down payment assistance. The MMP 1st Time Advantage program is available to first-time home buyers, while MMP Flex loans are also available for repeat buyers.
• Maryland SmartBuy 3.0: The SmartBuy 3.0 program is available to people who owe at least $1,000 in student loans. Using this program, you can use a portion of your loan — up to 15% of the home’s purchase price not exceeding $20,000 — to pay off your student loan debt. The portion you use to pay off your student loan debt is interest-free and forgiven after 5 years as long as you don’t sell your home within that period. To qualify for SmartBuy 3.0, the loan must completely repay your student loan debt.
• HomeAbility: HomeAbility is a Maryland mortgage program designed to help people with disabilities. You or someone in your household must have a disability to qualify. If you qualify, you can qualify for a mortgage covering up to 95% of the home’s purchase price and receive a zero-interest loan to cover down payment and closing costs. Payments on the second lien will be deferred for the life of the primary mortgage unless the home is sold, refinanced, paid off, or transferred to another owner.

Apply for a Maryland Home Loan

Securing a mortgage may seem complicated, but with Griffin Funding as your Maryland mortgage lender, you can find a home loan that fits your needs and make your goal of obtaining a house more achievable. Our process typically takes 30 days, so you do not have to wait long to move forward with your purchase. Additionally, with the Griffin Gold app, you can monitor your credit, budget, and find out how much home you can afford.

Ready to take the first step towards getting a home loan in MD? Whether you want to buy your first home or refinance an investment property, we can help. Reach out today to further explore your mortgage options and get pre-approved.