First-Time Home Buyer Programs in Maryland

Maryland Mortgage Program (MMP) by Department of Housing and Community Development:

MMP 1st Time Advantage:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas (repeat buyers eligible in these zones).
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with options for down payment assistance up to $8,500 as a 0% interest deferred loan (repayable upon sale or refinance).
Requirements:

• Income must not exceed county-specific limits (e.g., $128,900 for a 1-2 person household in Montgomery County as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 50%.
• Homebuyer education course required.
• Purchase price limit of $550,000 (non-targeted areas) or higher in targeted areas.

MMP Flex with Down Payment Assistance:

Benefits: Offers up to 4% of the first mortgage amount as a 0% interest deferred loan for down payment and closing costs; available to first-time and repeat buyers statewide.
Eligibility: Must use an MMP first mortgage; income limits vary by county and household size (e.g., $154,680 in Howard County for a family of 3+).

Maryland SmartBuy 3.0:

Description: Provides a 30-year fixed-rate mortgage with up to 15% of the purchase price (max $50,000) as a forgivable second loan to pay off student debt for first-time buyers; total assistance capped at 25% of home price.
Requirements: Minimum student debt of $1,000; credit score of 640; income limits apply (same as MMP); debt-to-income ratio up to 50%.

Local Programs:

Baltimore City

Baltimore Homeownership Incentive Program: Offers $10,000-$20,000 as a deferred loan or grant for first-time buyers; income must be at or below 80% AMI (e.g., $74,650 for a family of four); varies by initiative (e.g., Live Near Your Work).

Prince George’s County

Pathway to Purchase: Provides up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income capped at 120% AMI; first-time buyers only.

Frederick County

Homebuyer Assistance Program: Offers up to $15,000 as a deferred loan (0% interest, due upon sale or refinance) for first-time buyers; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 25% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with MMP loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Maryland areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.