Direct Answer: What Is the Maryland Mortgage Program (MMP)?

The Maryland Mortgage Program (MMP) is a state-run loan program that gives eligible Maryland homebuyers access to 30-year fixed-rate mortgages, down payment assistance and closing cost help. The Maryland Department of Housing and Community Development administers MMP through a statewide network of approved lenders, including Direct Mortgage Loans. The program’s goal is straightforward: make responsible homeownership realistic for more Maryland households.

Key Takeaways

What Is the Maryland Mortgage Program (MMP)?

The Maryland Mortgage Program is the state’s primary path to an affordable, fixed-rate home loan for eligible buyers. Every MMP loan carries a 30-year fixed interest rate, so your principal and interest payment stays the same for the life of the loan. The program pairs that stability with financial incentives, such as down payment assistance, designed to lower the upfront cost of buying a home. MMP loans are originated through approved private lenders like Direct Mortgage Loans, not directly through the state.

What Are the Benefits of the Maryland Mortgage Program?

MMP bundles several forms of assistance that homebuyers can combine depending on which subprogram they qualify for.

• Down payment assistance: Funds that can be applied toward the upfront payment required to secure your loan.
• Closing cost assistance: Funds that help cover the fees and costs due at settlement.
• Partner match programs: Grants and loans offered in partnership with local employers, governments or nonprofits, often matched to your down payment assistance.
• 30-year fixed-rate home loans: Every MMP loan uses this same stable loan structure.
• A statewide approved lender network: Over 100 lenders, including Direct Mortgage Loans, are approved to originate MMP loans.

Who Is Eligible for the Maryland Mortgage Program?

To use MMP, you generally need to meet three requirements: you must be at least 18 years old, hold a valid Social Security number, and have a total household income at or below the limit set for your county and household size. Household income limits vary significantly across Maryland, so the same income may qualify in one county and exceed the limit in another.

Most MMP loans are reserved for first-time homebuyers, defined as someone who has not owned a home in the past three years. If you’re purchasing in a state-designated targeted area, you may qualify for MMP even if you’ve owned a home before. Your loan officer can confirm whether your target property falls in one of these areas.

Is There an MMP Option for First Responders and Teachers?

Yes. First Homes for First Responders and Teachers is an MMP 1st Time Advantage option built for eligible first responders and teachers buying their first home in Maryland. It pairs a competitive 30-year fixed-rate first mortgage with a second loan equal to 5% of your first mortgage amount, which covers down payment and closing costs.

How the second loan works:

• The second loan carries 0% interest and defers for 30 years.
• You make no monthly payments on the second loan as long as you live in the home and keep your first mortgage in place.
• You repay the second loan only when you sell, refinance or transfer the home.
• This option may be combined with certain employer, builder or nonprofit grants that meet MMP, U.S. Bank and investor guidelines. It cannot be combined with other MMP products or the MMP Partner Match Program.

Who qualifies: You must be a first-time homebuyer and meet standard MMP eligibility requirements, including income limits, credit score and purchase price limits. Beyond that, you’ll need to fall into one of two categories:

• Working full time in an eligible first responder or teacher position in Maryland, or
• Moving to Maryland for a full-time eligible first responder or teacher position with a signed, non-contingent employment offer from a Maryland employer.

Eligible first responders include firefighters, certified EMTs and paramedics, volunteer firefighters with at least 12 months of documented service, police officers, rescue squad members, sworn members of the Office of the State Fire Marshal, and 9-1-1 specialists. If you want a broader look at first responder home financing options beyond MMP, see our guide to first responder and law enforcement home buying programs.

Eligible teachers include full-time, state-certified classroom teachers and school counselors serving pre-K through 12 at an accredited or state-recognized school. For more on financing options available to educators, see our guide to home loans for teachers.

You’ll also need to complete an approved homebuyer education class before closing.

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What Are the Income and Purchase Price Limits for MMP?

Income and purchase price limits depend on your county, household size and which MMP loan option you use. Maryland publishes updated limits directly on the MMP income and purchase price limits sheet, which is the most reliable source since these figures change periodically. Maximum loan amounts follow conforming loan limits for the property’s county and may differ from neighboring counties in the same year.

What Are Current MMP Interest Rates?

MMP interest rates are set by the state and change based on market conditions, so they are not fixed indefinitely at a single published number. Rates may also vary slightly depending on which MMP loan option and assistance combination you choose. The most reliable way to see where rates stand today is to talk with an approved MMP lender, who can review current rate sheets and walk you through what you may qualify for.

How Do You Apply for the Maryland Mortgage Program?

You apply for MMP through an approved lender, not directly through the state. Direct Mortgage Loans can walk you through eligibility, help you compare MMP subprograms and submit your application. From there, the process follows a standard mortgage timeline: pre-approval, application, underwriting and closing. If you want to see every step laid out in order, our first-time homebuyer checklist covers the full process.

How Do You Find an MMP-Approved Lender in Maryland?

Direct Mortgage Loans is an approved MMP lender with experience helping Maryland buyers navigate the program’s income limits, assistance options and paperwork.

If you’re ready to start, contact an approved MMP loan officer in your Maryland county and get a clear answer on what you may qualify for.

Can You Use MMP to Buy a Second Home or Investment Property?

No. MMP is intended for owner-occupied primary residences only. At the time of closing, you may not own another residence or other real property.

What Happens If You Sell or Refinance After Receiving MMP Assistance?

It depends on which MMP subprogram provided your assistance. Most MMP down payment and closing cost assistance is structured as a second lien, which must be paid off when you sell or refinance. Some assistance programs forgive the loan over time if you meet specific requirements, such as staying in the home for a set number of years. Review your specific program terms, or talk with your Direct Mortgage Loans loan officer, before you sell or refinance a home purchased with MMP assistance.

How Does MMP Compare to Other First-Time Homebuyer Programs in Maryland?

MMP is Maryland’s state-run program, while other first-time homebuyer options may come from individual counties, employers or federal programs like FHA. The main differences are the funding source and the assistance structure. Household income limits and property eligibility rules are specific to MMP and don’t automatically carry over to other programs, so it’s worth confirming which program fits your situation before applying. For a broader look at down payment assistance options across Maryland, see our guide to Maryland down payment assistance programs.

Ready to see what you qualify for? Contact a MMP-approved loan officer in your county and get a clear next step from Direct Mortgage Loans.

Down payment programs subject to additional eligibility requirements that may vary. Eligibility and approval is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral and underwriting requirements. Loan products described here may not be available at the time of application. All products are subject to eligibility and availability. Speak with a qualified mortgage professional to determine which programs may be available to you. Direct Mortgage Loans, LLC NMLS ID# is 832799 (www.nmlsconsumeraccess.org). Direct Mortgage Loans, LLC office is located at 11011 McCormick Rd Suite 400 Hunt Valley, MD 21031. Equal housing lender.