Thinking of buying a home in Crofton, MD or one of its surrounding communities? Chances are, you’re going to need a mortgage. There are actually quite a few different types of mortgages available to buyers in the area, so it definitely pays to do your research. Here are some of the most common types of mortgages available to Crofton buyers.

Curious to know what you might be paying for your home? My mortgage calculator lets you estimate your monthly loan payments at various home prices, interest rates, taxes, and more.


Common Mortgages in the Crofton Area

Conventional loan

  • Strict credit and income qualification requirements
  • Down payments typically 10% – 20%
  • No private mortgage insurance required with a 20% down payment
  • Interest rates may be fixed or adjustable

VA loan

  • Available to most active, retired, and veteran military personnel and their spouses
  • Down payments as low as 0%
  • Private mortgage insurance not required
  • May require an upfront funding fee

FHA loan

  • Down payments as low as 3.5%
  • Often used by buyers with lower credit scores or income
  • Requires both upfront and annual mortgage insurance

USDA loan

  • Often used by lower-income buyers
  • Down payments as low as 0%
  • Requires both upfront and annual mortgage insurance
  • Housing must be located in a designated “rural” areas (check availability map)

Construction loan

  • Used by those who are building a home, rather than purchasing a resale home
  • Can get two separate loans (one for the build, then a separate mortgage to pay that off), or bundle them together
  • Typically requires a higher down payment

Balloon mortgage

  • Payments are based on a 30-year term, but the loan itself is typically only 5 or 7 years
  • At the end of the term, you must pay off the loan, refinance, or sell the home
  • Often used by commercial buyers

Maryland Mortgage Program

  • Offers 30-year fixed-rate loans to qualifying buyers
  • Associated financial incentives aid buyers who might otherwise be unable to purchase
  • Down payment assistance and closing cost assistance available, in addition to loans
  • 1st Time Advantance, Flex, Maryland SmartBuy, and more
  • Offered by the Department of Housing and Community Development

Ready to Make a Move in Maryland?

Are you thinking about buying a home in the Crofton area? I’d love to help! Take a look at my handy mortgage calculator to get an idea of what you might be paying per month for your mortgage—or just give me a call to learn more and get started.

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