Maryland Mortgage Program: the program is administered by the MD Community Development Administration (CDA). The types of loans available are FHA & VA.
The interest rates are set by the CDA and are generally very close to market rates. Short sales and foreclosures have lower rates and it is a CDA portfolio foreclosure the rate is about 3.25%.
The biggest benefit to using the CDA is they have down payment assistance money available to anyone who uses the program.
$5,000 (DESLP) this is a no payment zero interest loan that does not require any repayment as long as you own the home under the CDA program. The mony can be used for the buyers down payment. Resulting in very little out of pocket.
There are other assistance funds available with matching funds from the state. Here is the link http://www.mmprogram.org
This program has high household income limits $127,300 for a 1-2 person household in the Washington metro MSA, and a little lower in the Baltimore MSA. The limits are higher for 3 or more people in the household.
This program can also be combined with the PG MY HOME Program. The PG program has lower household income limits and requires minimum investment by the buyer of 1.75% , where as the state has no minimum investment requirement.
Because the tresholds for the PG County are more stringent only a couple of buyers take advantage of it. Where as with the State CDA Program all most all the first time buyers can use it.