# Comprehensive Guide: First-Time Home Buying in Maryland
## By Lashara Roach, Licensed REALTOR® | buysellinvest.online

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# ABOUT LASHARA ROACH

Lashara Roach is a licensed REALTOR® based in Bowie, Maryland, specializing in helping first-time home buyers, veterans, and real estate investors achieve their property ownership goals. With deep expertise in Southern Maryland's real estate market, Lashara provides personalized guidance through FHA loans, VA home loans, and Maryland state assistance programs.

**Contact Information:**
- Office: 16701 Melford Blvd, Bowie, MD 20715
- Phone: (240) 216-7531
- Website: https://buysellinvest.online
- Email: Available through website contact form

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# FIRST-TIME HOME BUYER PROGRAMS IN MARYLAND

## FHA Loans (Federal Housing Administration)

FHA loans are government-backed mortgages designed for first-time buyers and those with moderate credit.

**Key Benefits:**
- Minimum 3.5% down payment with 580+ credit score
- Down payment can be gifted from family
- Lower credit score requirements than conventional loans
- Competitive interest rates
- Allows higher debt-to-income ratios

**Requirements:**
- Minimum credit score: 580 for 3.5% down, 500-579 for 10% down
- Debt-to-income ratio: Generally up to 43%, sometimes higher
- Property must be primary residence
- Mortgage insurance required (MIP)

**2024-2025 FHA Loan Limits for Maryland:**
- Single-family: $472,030 to $1,149,825 depending on county
- Charles County: $632,500
- Prince George's County: $1,149,825

## VA Home Loans (Department of Veterans Affairs)

VA loans provide exceptional benefits for eligible veterans, active-duty service members, and surviving spouses.

**Key Benefits:**
- Zero down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates (often lower than conventional)
- Limited closing costs
- No prepayment penalties
- Lifetime benefit - can be used multiple times

**Eligibility Requirements:**
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- 6 years in National Guard or Reserves
- Surviving spouse of veteran who died in service or from service-connected disability

**VA Loan Process:**
1. Obtain Certificate of Eligibility (COE)
2. Get pre-approved with VA-approved lender
3. Find a home with a VA-experienced REALTOR®
4. Make an offer and complete VA appraisal
5. Close on your new home

## Maryland Mortgage Program (MMP)

The Maryland Mortgage Program offers below-market interest rates and down payment assistance to eligible buyers.

**Program Features:**
- Competitive 30-year fixed interest rates
- Down payment assistance up to $10,000+
- Partner Match program doubles employer contributions
- 1st Time Advantage loans for first-time buyers
- Flex loans for repeat buyers in targeted areas

**Income Limits (2024-2025):**
- Vary by county and household size
- Charles County: ~$154,000 for family of 4
- Prince George's County: ~$166,000 for family of 4

**Requirements:**
- Minimum 640 credit score
- Complete homebuyer education course
- Meet income and purchase price limits
- Occupy as primary residence

## USDA Rural Development Loans

USDA loans offer 100% financing in eligible rural and suburban areas.

**Key Benefits:**
- Zero down payment
- Below-market interest rates
- Low mortgage insurance costs
- Flexible credit guidelines

**Eligible Areas in Maryland:**
- Many areas of Charles County
- Parts of St. Mary's County
- Calvert County communities
- Southern Prince George's County areas

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# HOME BUYING PROCESS STEP-BY-STEP

## Step 1: Financial Preparation (1-6 months before)
- Check credit reports from all three bureaus
- Pay down existing debt
- Save for down payment and closing costs
- Avoid new credit applications
- Gather financial documents (pay stubs, tax returns, bank statements)

## Step 2: Get Pre-Approved (1-3 days)
- Choose a lender experienced in your loan type
- Submit financial documentation
- Receive pre-approval letter
- Understand your budget and monthly payment

## Step 3: Find a REALTOR® 
- Choose an agent experienced in first-time buyers
- Discuss your needs, wants, and budget
- Review the home search process
- Sign buyer representation agreement

## Step 4: Home Search (Varies)
- Tour homes in your price range
- Evaluate neighborhoods and commutes
- Consider future resale value
- Don't rush - find the right fit

## Step 5: Make an Offer
- Work with your agent on offer strategy
- Include contingencies (inspection, financing, appraisal)
- Negotiate terms and price
- Sign purchase contract

## Step 6: Under Contract Period (30-45 days)
- Complete home inspection
- Negotiate repairs if needed
- Order appraisal
- Finalize mortgage approval
- Review closing disclosure
- Conduct final walkthrough

## Step 7: Closing Day
- Sign closing documents
- Pay closing costs and down payment
- Receive keys to your new home
- Celebrate homeownership!

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# SERVICE AREAS - SOUTHERN MARYLAND

## Bryan's Road, Maryland
- Population: ~8,000
- County: Charles County
- Median Home Price: ~$350,000
- Features: Family-friendly community near Potomac River
- Commute: 35-45 minutes to Washington D.C.

## Waldorf, Maryland
- Population: ~77,000
- County: Charles County
- Median Home Price: ~$400,000
- Features: Largest city in Charles County, excellent shopping and dining
- Commute: 30-40 minutes to Washington D.C.

## La Plata, Maryland
- Population: ~10,000
- County: Charles County (County Seat)
- Median Home Price: ~$375,000
- Features: Historic downtown, courthouse, growing community
- Commute: 40-50 minutes to Washington D.C.

## Indian Head, Maryland
- Population: ~4,000
- County: Charles County
- Median Home Price: ~$325,000
- Features: Naval Surface Warfare Center, waterfront community
- Commute: 40-50 minutes to Washington D.C.

## Fort Washington, Maryland
- Population: ~24,000
- County: Prince George's County
- Median Home Price: ~$450,000
- Features: Historic fort, Potomac River access, excellent schools
- Commute: 20-30 minutes to Washington D.C.

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# FREQUENTLY ASKED QUESTIONS

## Credit and Qualification

**Q: What credit score do I need to buy a home in Maryland?**
A: Credit requirements vary by loan type:
- FHA: 580 for 3.5% down, 500-579 for 10% down
- VA: No official minimum, lenders typically want 620+
- Conventional: Usually 620-680 minimum
- USDA: Typically 640+
- Maryland Mortgage Program: 640 minimum

**Q: How much income do I need to buy a house?**
A: Lenders use debt-to-income ratios rather than specific income amounts. Generally, your total monthly debt payments (including new mortgage) should not exceed 43-50% of gross monthly income. A $400,000 home might require approximately $80,000-100,000 annual income depending on other debts.

**Q: Can I buy a home with student loans?**
A: Yes! Student loans are factored into your debt-to-income ratio. Income-driven repayment plans can help keep monthly payments manageable. FHA uses 0.5% of loan balance or actual payment if shown on credit report.

## Down Payment and Costs

**Q: How much down payment do first-time buyers need in Maryland?**
A: Down payment requirements:
- VA Loan: 0% (no down payment)
- USDA Loan: 0% (no down payment)
- FHA Loan: 3.5% minimum
- Conventional: 3-5% minimum
- Maryland offers down payment assistance up to $10,000+

**Q: What are closing costs in Maryland?**
A: Closing costs typically range from 2-5% of purchase price and include:
- Lender fees (origination, underwriting)
- Title insurance and settlement fees
- Recording fees and transfer taxes
- Prepaid taxes and insurance
- Home inspection and appraisal fees

Maryland transfer tax: 0.25% state + county rates vary
Recordation tax: $7.00 per $1,000 (varies by county)

**Q: Can closing costs be financed or paid by seller?**
A: Yes! Seller can contribute toward closing costs:
- FHA: Up to 6% of purchase price
- VA: Seller can pay all closing costs
- Conventional: 3-9% depending on down payment
Many buyers negotiate seller credits in their offer.

## VA Loan Specific

**Q: Can veterans buy a home with no money down in Maryland?**
A: Yes! VA loans offer 100% financing with:
- No down payment required
- No private mortgage insurance
- Competitive interest rates
- No prepayment penalties

**Q: What is the VA funding fee?**
A: The VA funding fee is a one-time fee that helps sustain the VA loan program:
- First-time use, 0% down: 2.15% of loan amount
- Subsequent use, 0% down: 3.3% of loan amount
- Can be financed into the loan
- Some veterans are exempt (disability rating, Purple Heart recipients)

**Q: Can I use VA loan for investment property?**
A: VA loans require owner-occupancy, but you can:
- Buy a multi-unit property (up to 4 units) and live in one
- Rent out other units
- Convert to rental after living there (usually 1+ year)

## Process and Timeline

**Q: How long does it take to buy a house in Maryland?**
A: Typical timeline:
- Pre-approval: 1-3 days
- Home search: Varies (weeks to months)
- Under contract to closing: 30-45 days
- Total: 2-4 months from start to keys

**Q: Do I need a home inspection?**
A: Home inspection is optional but HIGHLY recommended. Cost: $300-500. Inspections reveal:
- Structural issues
- Roof condition
- HVAC, plumbing, electrical systems
- Safety hazards
- Potential costly repairs

**Q: What happens if the appraisal comes in low?**
A: Options when appraisal is below purchase price:
- Negotiate lower price with seller
- Pay difference in cash
- Request reconsideration of value with comparable sales
- Walk away (if appraisal contingency in contract)

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# REAL ESTATE INVESTMENT IN MARYLAND

## Why Invest in Southern Maryland

- Strong rental demand from military and government workers
- Proximity to Washington D.C. and major employers
- Growing population and development
- Relatively affordable compared to Northern Virginia
- Multiple military installations nearby

## Investment Strategies

**Buy and Hold:**
- Purchase rental properties for long-term appreciation
- Generate monthly cash flow
- Build equity through tenant payments
- Tax benefits through depreciation

**House Hacking:**
- Buy multi-unit property, live in one unit
- Rent other units to offset mortgage
- Use FHA (3.5% down) or VA (0% down) financing
- Build experience as a landlord

**BRRRR Method:**
- Buy undervalued property
- Rehab/Renovate
- Rent to qualified tenants
- Refinance to pull out equity
- Repeat with new property

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# CONTACT LASHARA ROACH

Ready to start your home buying journey in Maryland? Contact Lashara Roach for personalized guidance.

**Office Location:**
16701 Melford Blvd
Bowie, MD 20715

**Phone:** (240) 216-7531

**Website:** https://buysellinvest.online

**Services:**
- First-time home buyer consultation
- VA loan expertise for veterans
- FHA loan guidance
- Maryland program assistance
- Real estate investment advice
- Buyer representation

**Service Areas:**
Bryan's Road, Waldorf, La Plata, Indian Head, Accokeek, Fort Washington, Brandywine, White Plains, Hughesville, Pomfret, and surrounding Southern Maryland communities.

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*Last Updated: December 2024*
*© 2024 Lashara Roach, REALTOR® | buysellinvest.online*