Buying a home in Maryland
In Maryland, as in many states, property sellers are legally required to reveal various known problems that affect the property's appeal or worth. Md. Code Ann., Real Prop. § 10-702, obligates the seller to complete a form — known as the Residential Property Disclosure and Disclaimer Statement. But, Maryland law is quirky in that the seller is allowed to choose between giving a prospective buyer a disclosure of the property’s known defects, or a disclaimer stating the condition of the home. The differences between a disclosure and a disclaimer:- A Disclaimer
- By filling out a “Disclaimer,” the seller makes no narration or guarantees about the condition of the home. The disclaimer simply pronounces the seller is selling the property as-is. The buyer assumes all responsibility for any defects in the home
- Sellers still have to disclose latent defects in the home about which they are aware (under Md. Code Ann., Real Prop. § 10-702(d)). Maryland law states the disclaimer has to “Disclose any latent defects of which the vendor has actual knowledge that a purchaser would not reasonably be expected to ascertain by a careful visual inspection and that would pose a direct threat to the health or safety of the purchaser or an occupant.”
- A Disclosure
- The disclosure requires sellers to respond to a whole range of questions and answers. They will need to answer “yes” or “no” as to any known problems in defined areas (floors, walls, sprinkler systems, etc)
- In addition, the seller can add comments. The answers and comments sections are both part of a Maryland seller’s formal disclosure
The Maryland Mortgage Program
The Maryland Mortgage Program offers special loans for first time home buyers in MD. All loans through the Maryland Mortgage Program (MMP) are 30-year fixed-rate financing with competitive interest rates. What makes these loans different from other mortgages is that home buyers using them may qualify for down payment assistance, closing cost assistance, tax credits, and other unique benefits reserved for MMP borrowers. To qualify for the Maryland Mortgage Program, you’ll need to meet a few basic criteria:- You’re a first time home buyer in Maryland: includes anyone who hasn’t owned a home in the last three years
- Your income is at or below local limits: Income limits range from $92,500 to $154,420, depending on the number of people in your household and where in Maryland you live
- You’ll occupy the house full time: MMP can’t be used for a vacation home or investment property
- You meet mortgage loan requirements: Along with MMP-specific requirements, borrowers need to meet standard mortgage loan criteria for credit score, income, employment, etc.