FHA Loans in Maryland: Requirements, Down Payment Assistance & How to Apply

FHA loans remain one of the most accessible mortgage programs in Maryland — especially for first-time homebuyers and those with less-than-perfect credit. With down payments as low as 3.5% and credit score flexibility that banks rarely match, FHA is often the fastest path to homeownership in the DC Metro Area.

What Is an FHA Loan?

An FHA loan is a mortgage backed by the Federal Housing Administration. Because the government insures the loan, lenders can offer more flexible terms — lower down payments, lower credit score requirements, and more lenient debt-to-income guidelines. FHA loans are available through approved lenders and brokers, not directly from the FHA itself.

FHA Loan Requirements in Maryland (2026)

FHA Loan Limits in Maryland

FHA loan limits vary by county and change annually. In 2026, Maryland's high-cost counties (Montgomery, Prince George's, Howard, Anne Arundel) have significantly higher limits than rural counties — reflecting the DC Metro Area's home prices. As your broker, we confirm the exact limit for your target county before you start shopping.

Down Payment Assistance Programs That Work with FHA in Maryland

One of the most powerful strategies for Maryland homebuyers is pairing an FHA loan with a down payment assistance (DPA) program. When done correctly, this can bring your out-of-pocket cost to $0.

TRIO / LINK Program

The TRIO program (with the LINK loan option) is one of the most accessible DPA programs we work with. Key details:

• Minimum 620 credit score
• The LINK loan has approximately a 90% approval rate
• Covers your down payment and can apply to closing costs
• Non-occupant co-borrowers are allowed — a parent or relative can help you qualify
• Available on FHA loans throughout Maryland

Chenoa Fund

The Chenoa Fund is a national DPA program that pairs with FHA financing:

• Minimum 640 credit score
• Covers the FHA 3.5% down payment
• Forgivable options available for qualifying buyers
• Available throughout Maryland

Maryland Mortgage Program (MMP)

The Maryland Mortgage Program offers state-funded down payment assistance for Maryland buyers:

• Income limits apply — varies by county and household size
• Competitive interest rates
• Various DPA amounts available depending on program
• First-time buyer requirement for most programs

FHA Mortgage Insurance in Maryland

All FHA loans require mortgage insurance — this is how the FHA insures the lender against default. There are two components:

• Upfront MIP: 1.75% of the loan amount, rolled into the loan
• Annual MIP: 0.55–0.75% of the loan balance, divided into monthly payments
• If you put 10% or more down, MIP is removable after 11 years
• If you put less than 10% down, MIP remains for the life of the loan

For buyers who want to eliminate mortgage insurance sooner, we also have conventional programs with cancellable MI once you reach 20% equity.

How to Apply for an FHA Loan in Maryland

As an FHA-approved mortgage broker serving Maryland, DC, and Virginia, we handle the full process:

1. 1Free consultation — we review your credit, income, and down payment situation
2. 2Program matching — we determine which FHA + DPA combination fits your profile
3. 3Pre-approval — typically within 24 hours of receiving your documents
4. 4House hunting — your pre-approval letter is ready for competitive offers
5. 5Closing — most FHA loans close in about 30 days