HOME FINANCING · MD

Home Financing Guide for Baltimore County, Maryland

Buying a home in Baltimore County is very achievable, even if you are self-employed, new to credit, or do not have a Social Security number. This guide walks you through what home financing actually is, who qualifies locally, which documents you will need, and which lenders and community organizations truly serve this county. We also cover Maryland-specific programs that can lower your costs and explain the warning signs of predatory lending so you can protect yourself.

§ 01 — What it is

What Is Home Financing?

Home financing — most commonly a mortgage — is a loan that allows you to purchase a home by paying back the purchase price over time, typically 15 to 30 years, plus interest. The home itself serves as collateral, meaning the lender has a legal claim on it until the loan is fully repaid. There are several broad types of home loans: • **Conventional loans** — Offered by private banks and credit unions, usually requiring at least a 3–5% down payment and a credit score of 620 or higher. • **FHA loans** — Insured by the Federal Housing Administration. They allow down payments as low as 3.5% and are more flexible with credit scores (as low as 580). They are a common starting point for first-time buyers. • **USDA loans** — For eligible rural or semi-rural areas. Parts of Baltimore County's outer edges may qualify. • **ITIN loans** — A growing category offered by community lenders and credit unions that allows borrowers without a Social Security number to qualify using an Individual Taxpayer Identification Number. • **Portfolio loans** — Held by the lender rather than sold on the secondary market, so the lender sets its own underwriting rules. These can work well for self-employed borrowers or those with non-traditional income. No matter which loan type you choose, the core process is the same: you apply, the lender reviews your finances, an appraiser values the home, and — if everything checks out — you close and receive the keys.

§ 02 — Who qualifies

Who Qualifies? Baltimore County's Local Economy Context

Baltimore County surrounds — but does not include — the City of Baltimore. It is a diverse county of roughly 850,000 residents, with established communities in Towson, Dundalk, Catonsville, Essex, Owings Mills, and Pikesville, among others. The county's economy includes healthcare and hospital systems (GBMC, University of Maryland St. Joseph), logistics, federal contracting, retail, and a large small-business and independent-contractor workforce. Because of this economic mix, lenders in the county regularly work with: • **W-2 employees** in healthcare, government, and services — typically the easiest to qualify. • **Self-employed contractors and small-business owners** — You can still qualify, but lenders will want to see two years of tax returns and profit/loss statements. • **Gig and seasonal workers** — Income from platforms like Uber, DoorDash, or construction contracting can be documented and counted. • **ITIN holders** — Residents without a Social Security number can access mortgage products through ITIN-friendly lenders and credit unions (see Section 4). You do not need citizenship or permanent residency to buy a home in Maryland. • **First-time buyers with thin credit** — If you have little or no credit history, some community lenders will accept alternative credit references such as rent payments, utility bills, or remittance history. There is no single income threshold for Baltimore County. What matters most is your debt-to-income ratio (ideally below 43%), your consistency of income, and the size of the loan relative to the home's value.

§ 03 — What you need

Documents You Will Typically Need

Gathering your documents before you approach a lender saves time and gives you more negotiating confidence. Here is what most lenders in Baltimore County will ask for: **Identity & Residency** - Government-issued photo ID (driver's license, passport, consular ID card / matrícula consular) - Social Security number OR ITIN - If applicable: visa, green card, or work authorization **Income Verification** - Last two years of federal tax returns (all pages, all schedules) - Last two years of W-2s or 1099s - Two most recent pay stubs (if employed) - If self-employed: profit and loss statement, business bank statements (12–24 months) - If you receive rental income: current lease agreements and Schedule E from tax returns **Assets & Accounts** - Last two to three months of bank statements (all pages) - Documentation of any gift funds used for a down payment (a signed gift letter) - Statements for retirement or investment accounts, if applicable **Property** - Signed purchase contract (once you have one) - Homeowners insurance quote **Credit** - Lenders will pull your credit report. You do not need to bring it, but it helps to review your free report at AnnualCreditReport.com before you apply. If you are an ITIN holder, some documents differ slightly — lenders will ask for your ITIN letter from the IRS, and some accept foreign bank statements or international credit reports (Nova Credit can translate credit history from several countries).

§ 04 — Where to start in Baltimore County

Local Lenders, CDFIs, Credit Unions & ITIN-Friendly Options That Serve Baltimore County

This is the most important section. National advertising can be misleading — the institutions below are known to actively serve Baltimore County residents, including underserved and immigrant communities. **Community Development Financial Institutions (CDFIs)** • **Baltimore Community Lending (BCL)** — A Maryland-based CDFI focused on affordable homeownership and neighborhood reinvestment. BCL works with borrowers who have been turned down by traditional banks and offers counseling alongside lending. • **Druid Heights Community Development Corporation (CDC)** — Serves greater Baltimore metro with housing programs and connections to financing for lower-income buyers. • **Enterprise Community Loan Fund** — A national CDFI with strong Maryland operations; connects buyers to below-market financing and supports affordable housing development in the county. **Local and Regional Credit Unions (Member-Owned, Lower Fees)** • **MECU Credit Union (Municipal Employees Credit Union of Baltimore)** — Open to those who live or work in the Baltimore area. Offers conventional and FHA mortgages with competitive rates and personalized service. • **APG Federal Credit Union** — Serves the Baltimore metro area; known for working with a range of income types. • **Baltimore County Employees Federal Credit Union** — Primarily for county employees and their families; worth checking if you or a family member works for the county. • **SECU (State Employees Credit Union of Maryland)** — Open to Maryland state employees and related communities; offers a full suite of mortgage products. **ITIN-Friendly Lenders** • **Homeside Financial** — Active in the Baltimore metro area and has offered ITIN mortgage products. • **Neighborhood Housing Services of Baltimore (NHS Baltimore)** — Provides homebuyer education and has connections to ITIN-accepting loan products and down payment assistance. • **Self-Help Credit Union** — A national CDFI credit union with a mission to serve immigrant and low-income borrowers; offers ITIN mortgages in Maryland. • **Local community banks** — Several smaller Maryland-chartered banks (e.g., Chesapeake Bank of Maryland, Point Breeze Credit Union) hold portfolio loans and may accommodate ITIN borrowers on a case-by-case basis. Always ask directly. **HUD-Approved Housing Counseling Agencies in Baltimore County** Before you commit to any loan, a HUD-approved counselor can review your finances for free or low cost and help you compare offers: • **NHS Baltimore** — HUD-approved; covers Baltimore County. • **St. Ambrose Housing Aid Center** — Long-established nonprofit in the Baltimore area offering homebuyer counseling. • **Maryland DHCD's approved agency list** — Available at dhcd.maryland.gov. **SBA Baltimore District Office** (for small-business owners seeking SBA loans tied to owner-occupied commercial property) • Located at 100 S. Charles Street, Baltimore, MD. If you own a business and want to buy a building to operate from, the SBA 504 or 7(a) programs are worth exploring here — though this is distinct from residential mortgages.

§ 05 — What to avoid

Maryland-Specific Programs and Regulatory Notes

Maryland has some of the strongest state-level homebuyer support programs in the country. Baltimore County residents can access all of the following: **Maryland Mortgage Program (MMP) — Maryland Department of Housing and Community Development (DHCD)** This is the flagship state program. It offers: - Below-market, fixed interest rates on 30-year mortgages. - Down Payment Assistance (DPA) of up to $5,000 (or more through partner programs) in the form of a zero-interest deferred loan. - Special products for teachers, first responders, healthcare workers, and buyers in targeted areas. - Eligibility is income- and purchase-price-limited; Baltimore County has its own specific limits (check dhcd.maryland.gov for current figures). - Works through a network of approved private lenders — you apply through a participating lender, not the state directly. **Baltimore County-Specific Assistance** - **Baltimore County Department of Planning** oversees local housing programs. The county has periodically offered its own down payment and settlement assistance grants — check baltimorecountymd.gov/departments/planning for current availability. - **Live Near Your Work Program** — Some Baltimore County employers participate in this state program, contributing employer funds matched by the state toward down payments for employees who buy near their workplace. **Maryland Homeowner Assistance Fund (HAF)** If you already own a home and are struggling with mortgage payments due to financial hardship, HAF can provide mortgage payment assistance. Apply through Maryland DHCD. **Maryland Regulatory Protections** - Maryland is an **attorney-required closing state** — a licensed attorney must be present at settlement, which adds a layer of legal protection for buyers. - Maryland's **Finder's Fee Act** restricts mortgage broker compensation in certain situations, reducing some predatory middleman arrangements. - The **Maryland Commissioner of Financial Regulation** licenses and oversees all mortgage lenders and brokers in the state. You can verify any lender's license at the NMLS Consumer Access website (nmlsconsumeraccess.org) or call the Commissioner's office. - Maryland has a **three-day right of rescission** on refinances (not purchases), giving you time to cancel if you change your mind.

§ 06 — Ask a question

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