If you have student debt, then homebuying is not off the table for you! The Maryland SmartBuy 3.0 Program helps homebuyers with student debt finance a home. The program works to assist homebuyers to pay off their student debt while purchasing an eligible home. Here is the breakdown of the Maryland SmartBuy 3.0 Program

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Maryland SmartBuy financing provides up to 15% of the home purchase price to the borrower to pay off their outstanding student debt. The 15% caps out at $30,000 dollars; this is the maximum amount provided to the borrower for student debt. This is structured as a 0% interest loan, forgivable over 5 years. Any MMP-eligible property in the state of Maryland is applicable to this homebuying program. This program allows a homebuyer to borrow money to buy a home and pay off their student debt. 


To be eligible for the Maryland SmartBuy 3.0 Program, a borrower must: 

  • Have at least $1,000 of student debt (and up to 15% of purchase price) 
  • Have no more than $30,000 of student debt 
  • Pay off student loan at the time of the home purchase 
  • Earn a homeownership counseling certificate before closing on home 
  • Contribute at least 5% of the sales price of your own money to your home purchase 
  • Live in home as primary residence within 60 days of closing 
  • Not own any other properties at time of closing 
  • Maximum combined Loan-to-Value is 105% 
  • 720 middle credit score 

Product Breakdown 

If you are eligible in the Maryland SmartBuy Program, then here is how the loans are structured to provide this opportunity. There are two loans provided to the eligible borrower; one loan is a secured loan, and the other loan is an unsecured loan.  

  • The unsecured loan is a forgivable loan of up to 15% of the purchase price of the home. This is used to pay off student debt. The forgivable loan is a 0% deferred loan with no payments, forgivable over 5 years at 20% per year.  

Is this Program for You?

If you are eligible, then you may want to consider if this program. While it may be daunting to buy a home when you already have student debt, it is made possible with the Maryland SmartBuy 3.0 Program. It is also important to consider the major benefits of homeownership. Not sure if you qualify for this program? Learn more about other mortgage solutions that might be a better fit for your situation.

Purchase a home with student loan debt