I have long extolled the virtues of the Maryland CDA loan program aka More House 4 Less program on my blog.  This is a fabulous program primarily geared for first time home buyers but if you are buying in what is considered a “targeted area” you don’t have to be a first time buyer!  You just can’t own any other properties at the time of settlement.  All of Baltimore City is a targeted area and that is a great thing if you are looking buy there. 

Rates for a 30 year fixed rate loan (either conventional or FHA) with CDA are 6.25% with 0 points, well below the current market average.  Plus, CDA and the Maryland Housing Fund offer true 100% financing if you are qualified.  If that wasn’t good enough, you can also get $2500 towards closing costs if you are purchasing a property that is less that $200,000.   You need to make less than $98,040 for a 1-2 person household, and $114,380 for 3+ in your househould for Baltimore City.