Home Buying Down Payment Assistance Programs
How can I get money for a down payment?
Which loan is best for first-time home buyers?
What are my options if I can’t afford my down payment?
Does Maryland have down payment assistance?
Who qualifies as first-time home buyer in Maryland?
Do you have to pay back Maryland mortgage program?
How can I buy a house with no money down in Maryland?
How can I get money for a down payment?
Having enough money saved for the purchase of a home is one of the biggest challenges. Fortunately, there are down payment assistance programs that can help expedite your home buying dreams. Each down payment assistance program has its own eligibility requirements, so it’s important to work with a lender that is experienced working with these programs.
The first step is to contact a lender who is eligible to offer the down payment assistance program. Our team is a silver-tier partner with the Maryland Mortgage Program.
Once you call our team, and we’ve discussed your home buying goals and needs, ask about down payment assistance programs. We’ll then help you understand which programs align with your home buying needs.
Which loan is best for first-time home buyers?
There are many home financing solutions. Knowing which is best for your situation is based on understanding your wants, needs, and goals. During an initial conversation with our team, we’ll ask you questions so that we can help match you with the home loan program that best suits your needs.
Before you discredit your home buying ability, contact our team. You may be able to make your home buying dreams come true with the help of a down payment assistance program.
What are my options if I can’t afford my down payment?
Don’t believe the myth that you need 20% down to purchase a home. There are many other home financing programs that can help you become a homeowner with a smaller down payment – down payment assistance programs may cover the difference needed to make you a homeowner or could be the funds to cover your entire down payment.
Baltimore City B-HIP DPA Program
If planning to purchase a home within the Baltimore city limits, then the Baltimore City B-HIP down payment assistance programs could help you close the gap on your home buying dreams. The programs offer between $3,000 and $25,000 towards down payment and closing cost assistance.
DC HPAP Program
The DC Department of Housing and Community Development offers home buying assistance for first-time homebuyers up to $202,000 plus $4,000 for closing cost assistance. The amount of assistance is based on household income and size.
Frederick County HAP DPA Program
Administered by the Frederick County Department of Housing and Community Development, the Frederick County Homebuyer Assistance Program offers up to $10,000 in down payment/ closing cost assistance for eligible first-time homebuyers.
Gaithersburg GHALP DPA Program
The Gaithersburg Homebuyer Assistance Loan Program (GHALP) provides closing cost & down payment assistance to eligible first-time homebuyers who purchase within the City of Gaithersburg corporate limits. Assistance amounts vary from $12,000 to $25,000.
Hagerstown Home Store DPA Program
Through the Hagerstown Home Store program, eligible home buyers may receive up to $6,000 towards their home purchase.
Howard County SDLP DPA Program
Howard County in Maryland offers a down payment assistance program that provides up to $40,000 in assistance to Maryland homebuyers. Homebuyers must meet program requirements and must have $1,000 to put towards settlement/down payment costs plus one month’s mortgage payment in savings account.
Prince George’s County Pathway to Purchase Programs
The Pathway to Purchase Program offers up to $10,000 in down payment assistance funds. This is a 0% interest, deferred payment loan that is forgiven after 10 years. If the home is sold less than 10 years into the loan repayment, then the borrower must pay back the loan when the home is sold.
UnitedWay Prosperity Program
Through the UnitedWay Prosperity Program, homebuyers earn $4 for every $1 saved towards a home purchase, up to $15,000. Must meet pre-qualification requirements set by the Pathway to Homeownership program.
Does Maryland have down payment assistance?
Yes! There are many programs available from a statewide program known as the Maryland Mortgage Program (MMP), or through city/county-based programs.
Maryland Mortgage Program (MMP)
The Maryland Mortgage Program is designed to make homeownership affordable for Maryland citizens. In many cases, potential homeowners believe they are not eligible for a down payment assistance program. Do not fall into the trap. Program qualifications are generous when factoring household income.
MMP Program Requirements:
Must complete homeowner’s education class (free link available through MMP)
Minimum 640 credit score
Cannot own another property
Household income is used for qualification
Interest rates are set by the state of Maryland
Some programs allow layering – you could use multiple programs at one time
Maryland Mortgage Program (MMP) SmartBuy 3.0
Requirements: Must meet MMP requirements.
Funds available: Down payment assistance of $6,000 or 4% or 6% of the loan amount.
Note: Up to $40,000 of student loan forgiveness when using this program.
*All MMP programs subject to MMP availability. Interest rates set by the state of Maryland.
Maryland Mortgage Program (MMP) 1st Time Advantage
Requirements: Must be a first-time homebuyer and meet MMP requirements.
Funds available: $6,000 or 3%, 4%, or 5% of the loan amount
Note: This is a loan and must be repaid if the home is sold.
Maryland Mortgage Program (MMP) Flex
Requirements: Must meet MMP requirements.
Funds available: $6,000 or 3% of the loan amount.
Maryland Mortgage Program (MMP) HomeStart
Requirements: Must meet MMP requirements.
Funds available: 6% of the loan amount.
Maryland Mortgage Program (MMP) Home Ability
Requirements: Must meet MMP requirements.
Funds available: Up to $45,000
Maryland Mortgage Program (MMP) Montgomery County
Requirements: Must meet MMP requirements.
Funds available: Up to $25,000
Who qualifies as first-time home buyer in Maryland?
In the eyes of the Maryland Mortgage Program, a first-time home buyer is someone who has not owned residential property for three years or more.
Do you have to pay back Maryland mortgage program?
In some cases, MMP down payment assistance is a loan, which will need to be repaid, in others, the funds are a grant – a gift to help you become a homeowner. Ask one of our team members which program is best for you based on the time you plan to live in your new home.
How can I buy a house with no money down in Maryland?
First, contact our team to discuss your options. There are many down payment assistance program that can help make you a homeowner sooner than you thought. Once we meet, we’ll learn more about you to determine which programs you may be eligible for.
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.