First Time Home Buyer Maryland Down Payment Assistance Programs

First Time Home Buyer MD Home Buyer Assistance Programs

How can I get money for a down payment?

Which loan is best for a Maryland first time home buyer?

Down Payment Assistance and First Time Buyer Programs In MD

Does Maryland have down payment assistance?

What are the qualifications to be a first time home buyer in Maryland?

What is the first time home buyer limit 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?

Saving enough for a down payment can be a common challenge for people looking to buy a home. Fortunately, Maryland offers several down payment assistance programs to help make buying a house more affordable. These programs have specific eligibility requirements, so it’s important to work with a participating lender who is familiar with these programs and can help you find the best option for your needs. 

Direct Mortgage Loans is a silver-tier partner of the Maryland Mortgage Program and could assist you in understanding the available programs and finding the one that best suits your individual needs as a homebuyer. 

Which loan is best for a Maryland first time home buyer?

First time homebuyers in Maryland could benefit from various programs offered by the Maryland Department of Housing and Community Development. These programs help with down payments and closing costs, and each has specific eligibility requirements.

The best loan option for you will depend on your financial situation and home buying goals. To find the right loan, schedule a call with one of our Loan Officers for personalized advice.

Down Payment Assistance and First Time Buyer Programs In MD

The Maryland Mortgage Program offers several programs to make homeownership a reality for first-time buyers. Let’s explore these programs to help determine which option is best for you!

First Time Home Buyer Baltimore City B-HIP DPA Program

Baltimore City’s Department of Housing & Community Development offers the B-HIP program to help first time homebuyers with down payment and closing costs. This program provides a forgivable loan of up to $10,000 to eligible homebuyers purchasing a home in Baltimore City.

HPAP DC Program

The DC Department of Housing and Community Development offers home buying assistance for first time home buyers 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 $12,000 in down payment and 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 

The Hagerstown Home Store DPA Program provides down payment and closing costs assistance for buyers looking to purchase in Hagerstown. When used with the Maryland Mortgage Program, eligible buyers could receive up to $6,000 towards their home purchase. 

Howard County SDLP DPA Program  

Howard County in Maryland offers to help homebuyers with financing for settlement and down payment costs. The program provides a deferred loan with a maximum of $40,000 for eligible buyers and capped interest rate at 3%. Homebuyers must meet program requirements and contribute at least $1,000 towards settlement/down payment costs plus one month’s worth of mortgage payments. 

Prince George’s County Pathway to Purchase Programs 

Prince George’s County offers the Pathway to Purchase Program, providing first-time homebuyers with up to $25,000 in 0% interest, deferred payment loans for down payment and closing cost assistance. After 10 years of ownership, the loan is forgiven, but if the home is sold before that, the remaining balance must be repaid. 

UnitedWay Prosperity Program  

The United Way Prosperity Program allows eligible ALICE (Asset Limited, Income Constrained, Employed) households in Frederick County to take part in the Pathway to Homeownership program. For every $1 saved, participants will receive a match of up to $17,000 towards their home purchase. 

FHA 100% DPA 

This program allows eligible homebuyers in Maryland to secure 100% financing, which means you could qualify for an FHA Loan with no down payment required. This is achieved by combining a 1st and 2nd mortgage and is compatible with FHA loans. The 2nd mortgage can be up to 3.5%, based on the lesser of the sales price or appraised value, and has a 10-year term. 

• FHA 100% Financing Requirements 
• To be eligible for the program, you must meet certain requirements. This includes having a minimum FICO credit score of 620. Additionally, you need to complete a Homebuyer Education course and be buying single-family homes, duplexes, manufactured homes, PUDs, townhouses, or condos. 

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 (MMP) is a state-sponsored initiative that assists Maryland residents in achieving homeownership. MMP offers a variety of programs to make buying and owning a home more affordable. These programs include access to both government-insured and conventional mortgages, providing homebuyers with more flexibility in choosing the loan product that best suits their needs. 

Maryland Mortgage Program Requirements: 

The Maryland Mortgage Program provides different loan options, each with slightly different requirements. However, there are some general eligibility criteria that apply to most MMP programs.  

• Income Limits: Your household income must fall within certain limits set by the program. 
• Credit Score: You’ll need a minimum credit score, typically at least 640 but potentially higher for some programs. 
• Property Occupancy: The property you purchase must be your primary residence, not an investment property or vacation home. 
• Homebuyer Education: Completing a homebuyer education course is required for some MMP programs. 

Maryland Mortgage Program (MMP) SmartBuy 3.0  

MMP SmartBuy 3.0 program helps homebuyers with student debt purchase a home. It offers up to 15% of the purchase price, or a maximum of $20,000, to pay off existing student loans while financing your home. To qualify, you’ll need a minimum student loan balance of $1,000 and meet Maryland Mortgage Program requirements. 

Maryland Mortgage Program (MMP) 1st Time Advantage 

MMP 1st Time Advantage program helps first time homebuyers in Maryland by offering several options for down payment and closing cost assistance. You can qualify for a fixed amount of $6,000, or a percentage of the total loan amount (3%, 4%, or 5%). This assistance is a second mortgage with a zero percent interest rate. No payments are due on the second mortgage until the first mortgage is paid off, refinanced, or the property is sold. 

Maryland Mortgage Program (MMP) Flex  

MMP Flex offers two options to assist with down payments and closing costs. The Flex 5000 provides a $5,000 interest-free loan, repayable only when you sell, refinance, or complete your first mortgage, and can be combined with Partner Match funds if available. The Flex 3% Loan gives a credit equal to 3% of your first mortgage amount, also interest-free and deferred until your first mortgage ends. 

Maryland Mortgage Program (MMP) HomeStart  

MMP HomeStart is designed for first time homebuyers with income at or below 50% of the Area Median Income (AMI). It provides a zero percent interest, 30-year deferred loan equal to 6% of the MMP total loan amount. This means that you could receive the down payment assistance you need without having to worry about making monthly payments right away. 

Maryland Mortgage Program (MMP) Home Ability  

MMP Home Ability helps Maryland homebuyers with disabilities finance their home purchase. It combines a conventional loan with a deferred second loan, up to $45,000 for down payment and closing costs. The second loan has a 0% interest rate, and you only repay the second loan if you sell, refinance, or transfer the property. 

Maryland Mortgage Program (MMP) Montgomery County  

Montgomery County offers extra help for residents buying a home through the MMP Montgomery County program. This program provides a second mortgage with 0% interest, up to $25,000 based on income, for down payment and closing costs. Any unused funds go towards reducing your principal. Additionally, it’s a 0% interest deferred loan, meaning that repayment is only required when you sell, refinance, transfer ownership, or after 30 years. 

What are the qualifications to be a first time home buyer in Maryland? 

To be considered a first time homebuyer by the Maryland Mortgage Program, you should not have owned residential property in the past three years. Exceptions to this rule apply if you are purchasing a home in a designated Targeted Area, are a veteran using their exemption for the first time or are a borrower using Flex Loan products. In these cases, you could be exempt from the three-year ownership requirement. 

*This definition applies to the Maryland Mortgage Program and is not the same definition used for recording tax purposes. 

What is the first time home buyer limit in Maryland? 

There is no single income limit for first-time homebuyers in Maryland. The Maryland Mortgage Program (MMP) uses county-specific income limits that vary depending on your location and household size. 

These income limits consider the combined income of everyone 18 years or older who will live in the property. This includes all sources of income such as salaries, wages, retirement income, government benefits, and investment gains. 

Essentially, to qualify for MMP based on income, your total household income must be at or below the specific limit set for your county and family size. 

Do you have to pay back Maryland mortgage program? 

The Maryland Mortgage Program (MMP) provides down-payment assistance in two forms: loans and grants. Loans require repayment, while grants are essentially gifts to help you achieve homeownership. 

To determine which option is best for you, consider your long-term plans, and contact one of our Loan Officers. They can assess your situation and recommend the program that best aligns with your needs. 

How can I buy a house with no money down in Maryland?

If you are interested in purchasing a home with no money down in Maryland, there are several mortgage options available. Specifically, VA, USDA, and FHA 100% all offer no down payment loan options. Additionally, there are various down payment assistance programs that could allow you to purchase a home with no money down. Keep in mind that each will have its own eligibility requirements. It’s best to speak with one of our Loan Officers to discuss your options. 

Down Payment Programs are subject to individual program eligibility requirements, fund availability, property location, first time homebuyer status, and more. Speak with a qualified mortgage professional to determine which programs may be available to you.

Eligibility and approval are subject to the completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Direct Mortgage Loans, LLC NMLS ID# is 832799 (www.nmlsconsumeraccess.org). Our office is located at 11011 McCormick Rd Suite 400 Hunt Valley, MD 21031. Equal housing lender.*