To claim an FHA loan in Baltimore, follow these steps: 1) Verify eligibility via income limits (2023 median income for Baltimore County is $112,900 for a household of four) and credit score (minimum 500). 2) Secure pre-approval from an FHA-approved lender, who will assess debt-to-income ratio (≤43%). 3) Submit a loan application with documents including pay stubs, tax returns, W-2s, bank statements, and a property inspection report. 4) Undergo underwriting, which may require additional documentation or repairs per FHA standards. 5) Close the loan at a title company with an FHA-approved mortgagee. For home rehabilitation, consider the FHA 203(k) program, which allows borrowing up to $35,000 for repairs.

The process ensures accessibility for low-to-moderate-income borrowers in Baltimore, where 28% of homeowners have mortgages exceeding county median home values ($350,000). FHA loans require a 3.5% down payment, reducing upfront costs for buyers. In 2022, 4,200 FHA loans were originated in Maryland, with Baltimore County accounting for 35% (1,740) of these. The program’s flexible credit requirements (accepting scores as low as 500 with compensating factors) have helped 62% of applicants in Baltimore County achieve approval despite average credit scores of 678, below the national average of 710. The FHA’s 203(k) program contributed to 1,200 Baltimore homeowners completing renovations in 2022, boosting property values by an average of $28,500. These data underscore FHA’s role in promoting homeownership in Baltimore’s diverse market.