Maryland Mortgage Program 101- CDA Loans, etc.

Managing Real Estate Broker with Golf Life Properties, LLC

CDA loans are a function of the Maryland Department of Housing and Community Development. DHCD implements housing policies to promote and preserve homeownership in the state of Maryland and CDA loans are a large part of that.

That's because CDA (Community Development Administration) loans currently have rates as low as 3.5% and even lower rates on short sales, foreclosures and other loan programs.  It’s a 30 year fixed rate mortgage loan that has down payment and closing cost assistance available as well.

CDA loans are for owner occupants only but you don’t necessarily have to be a first time buyer. Buyers who are purchasing in “targeted areas” do not have to be first time buyers. 

But you must attend homeownership counseling and acceptable credit is required.  CDA loans are underwritten to normal mortgage industry credit standards. A participating lender will be able to help you analyze your credit standing.

It’s also important to note that Federal law provides for a possible Recapture Tax when some homeowners sell their home within the first nine years after receiving a mortgage through the Community Development Administration’s (CDA) Maryland Mortgage Program.  The recapture tax is applied if both of the following criteria are met:

  1. You sell or dispose of your home at a gain within nine years of acquiring it, and
  2. Your income at that time no longer allows you to qualify

But to remove the confusion about having to repay a recapture tax, CDA agrees to reimburse any CDA homebuyer, who settles on their home on or after July 1, 2005, the amount of any recapture tax that the CDA homebuyer pays in connection with the sale of the home.

The free Maryland Mortgage Program kit describes in great detail the interest rates, down payment and closing cost assistance that's available, a list of approved Lenders, homeownership counseling agencies, and the 7 Quick Steps to Getting Started and more.

Pick up your FREE Maryland Mortgage Program kit, TODAY!

Or take a look at the full version below: Maryland Mortgage Program- Free Kit

For more affordable options to buy your first home in Maryland, contact us for more information.  We’d be happy to answer any questions you may have. No pressure.

Yours truly,

  nishika jones

Posted by
Nishika Green, REALTOR®
Licensed Real Estate Broker
(410) 952-2641 Phone/Text
Planning to buy or sell a luxury lifestyle residence? Or an investment property? Our team offers decades of experience and specializes in offering unparalleled resources to minimize (if not completely remove) the stress from a real estate transaction.


This posting with the content written here and photographs displayed are the intellectual property and opinions of Nishika Green of Golf Life Properties, LLC. Any party who uses this material without the permission of Nishika Green is subject to copyright infringement and possible lawsuit.


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Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

Hi Nishika. This is a very informative post that every homeowner in your area must read. Thanks for sharing.

Nov 04, 2011 04:30 PM #1

What they fail to say is that if for any reason you get behind on your mortgage.  Becasue you have a CDA loan you do qualify for any of the federal homeowner assistance programs.  I purchased my house in 2007 for  259,500 now it is worth 133,800.  I lost my job and got behind on my mortgage.  Now I did everything they said to do on TV and radio I called M & T Bank sent all the paper work in.  Nothing.  Now I have a job it does not pay what I was making but it is better than unemployment.  But I can not get a mortgage principal adjustment or lower payments.  The state would rather foreclosue on my house than work with me.  CDA Loans with state of Maryland suck.  Check out so of the forums on them before you get sucked in.

Aug 20, 2012 10:31 AM #2
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