Maryland Department of Housing and Community Development (DHCD) Programs:
Updated July 22, 2026Maryland DHCD, through the Maryland Mortgage Program (MMP), offers 30-year fixed-rate mortgages across FHA, VA, USDA, and conventional product lines plus multiple down payment/closing-cost assistance options for first-time homebuyers (no ownership in past 3 years, typically waived in targeted areas). Verify current rates, income/purchase limits, and product availability with an MMP-approved lender or at mmp.maryland.gov/home-loans.
Maryland Mortgage Program (MMP):
Eligibility: First-time homebuyers (no ownership in prior 3 years) or buyers in targeted areas; household income and purchase-price limits vary by county and household size (see Attachment III). Homebuyer education is required for many MMP DPA products. See county tables and program fact sheets on the MMP site: Attachment III (income & purchase limits PDF) and MMP product matrix & fact sheets.
- Income: county-specific limits — check the MMP income & purchase limits PDF for exact numbers per county and household size.
- Credit score: varies by loan product — conventional MMP offerings commonly expect mid-600s for best pricing; FHA underwriting follows HUD rules (FHA guidance generally allows 3.5% down at decision scores ≈580+ but lenders may set higher overlays). See HUD and your lender for product-specific guidance. HUD / FHA.
- Debt-to-income: typical underwriting targets are commonly around ≤45% (many lenders and products permit higher ratios with compensating factors).
- Homebuyer education: required for most MMP DPA products (DHCD-approved counseling or approved online course). See dhcd.maryland.gov Homebuyer Education and the MMP lender/fact sheets.
Down Payment and Closing Cost Assistance (DPA):
MMP DPA — common examples:
- 1st Time Advantage / Flex 6000: MMP product lines that include a $6,000 0% interest, deferred second (repayment deferred for the life of the first mortgage) for eligible buyers. See MMP product fact sheets. MMP Fact Sheets and the DPA overview at MMP Down Payment Assistance.
- HomeStart: targeted to very-low-income borrowers (commonly for households at or below ~50% AMI) — HomeStart commonly provides a 0% deferred second equal to about 6% of the first mortgage; check MMP eligibility tiers for exact thresholds and income charts.
- Partner Match: approved employer, community, or builder partner funds can be matched by MMP — commonly matched up to $2,500 when layered with 1st Time Advantage 6000 or Flex 6000. See the MMP Partner Match listing for participating partners and match rules. MMP Partner Match details.
Maryland Mortgage Credit Certificate (MCC / "HomeCredit"):
Description: The Maryland HomeCredit historically let eligible buyers claim a portion of annual mortgage interest as a federal tax credit (certificate credit rate = 25% of mortgage interest up to a $2,000 annual cap). Official MMP guidance shows the Maryland HomeCredit program is closed for new reservations (closed 6/19/2020); existing MCCs may still be re-issued for refinances. Confirm current availability or re-issue rules with an MMP-approved MCC lender. Maryland HomeCredit (MMP). See the MMP directive on the program closure for lenders (June 19, 2020 directive).
Local Programs (Examples)
Many counties and cities offer local DPA, forgivable loans, or targeted incentives that can stack with MMP products. Funding rounds and award amounts change frequently — use the linked official program page for current caps and application windows.
Baltimore City / Baltimore County
Baltimore City: The city and partner programs (Live Baltimore, Baltimore City Office of Homeownership, HABC) provide a mix of forgivable loans, deferred seconds, and targeted incentives. Typical program awards commonly range from about $5,000 up to $10,000, and some targeted incentives or central-city packages run $10,000–$20,000 or more depending on program and income. Example program pages and guidance are on Live Baltimore. Live Baltimore — First-Time Homebuyers Incentive and Baltimore City Office of Homeownership pages.
Montgomery County
Montgomery County: County homeownership funds (e.g., Montgomery Homeownership Program and the Montgomery Homeownership Assistance Fund / McHAF) are administered with state partnership and have commonly provided awards up to $25,000 (zero‑interest, deferred second mortgages in many recent funding rounds). See Montgomery County program pages and FY26 materials for current caps and application status. Example county references and HOC program page: Montgomery OLO / FY26 program summary and HOC — McHAF / Closing Cost & DPA.
Prince George's County
Prince George's County: The county offers multiple homebuyer assistance streams (Pathway to Purchase, Redevelopment Authority programs, PGCPAP, and other targeted DPA lines). Program rules commonly include counseling, minimum buyer contributions, geographic/zip-code eligibility for certain rehab/foreclosure-targeted awards, and varied dollars-per-program (recent county guidance expanded Pathway to Purchase benefits and cites assistance amounts up to $50,000 in eligible cases). Confirm the precise program name, award cap, and eligible areas with the county Redevelopment Authority. Prince George's County — Pathway to Purchase.
Additional Information:
- USDA Loans: USDA Rural Development guaranteed and direct loans can offer no-down-payment financing for eligible rural properties. Check property location and income eligibility with USDA RD. USDA Single Family Housing.
- VA Loans: VA-backed loans can permit eligible veterans to purchase with no down payment (subject to entitlement and lender underwriting). See official VA guidance. VA Home Loans.
- FHA Loans: FHA is a common low-down-payment option; HUD guidance typically allows a 3.5% down payment for borrowers meeting FHA credit standards (decision-score thresholds and down payment tiers are set by HUD). Verify lender overlays, MIP rules, and pairing with DPA with your lender. See HUD/FHA materials for specifics. HUD / FHA.
Maryland programs emphasize flexible DPA and active local partnerships; precise caps and eligibility vary by county and funding round.
Always confirm program availability, exact dollar caps, income/purchase limits, and current interest rates with an MMP-approved lender or dhcd.maryland.gov.
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