Maryland's state-run mortgage program is launching a new loan product aimed at residents buying homes in need of rehabbing.

The "acquisition rehabilitation" loans will allow eligible applicants to borrow money through the Maryland Mortgage Program to cover the cost of the purchase and the repairs or renovations at the same time, the state says. Borrowers would also be able to tap into the state's assistance with down payments and settlement costs.

The state says one of its goals for the loan is to stabilize neighborhoods "rocked by foreclosures."

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