First-Time Home Buyer Programs in Maryland

Maryland Department of Housing and Community Development (DHCD) Programs:

Maryland DHCD, through the Maryland Mortgage Program (MMP), offers 30-year fixed-rate mortgages at competitive rates and down payment/closing cost assistance for first-time homebuyers (no primary residence in past 3 years, waived in targeted areas) via approved lenders. No statewide sales price limit; income limits vary by county (higher in targeted areas). Mandatory homebuyer education required. Verify current rates, income/purchase limits, and targeted areas at dhcd.maryland.gov or contact an MMP-approved lender. Programs remain active and well-funded in 2026.

Maryland Mortgage Program (MMP):

Eligibility: First-time homebuyers or those not owning in past 3 years (waived in targeted areas); low-to-moderate income.
Offerings: 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) with below-market rates and low down payment options.
Requirements:

• Income ≤ county-specific limits (varies by household size; e.g., ~$120,000–$180,000+ in high-cost areas like Montgomery/Prince George's; lower in rural counties—check MMP income chart).
• Minimum credit score: 620+ (varies by loan type).
• Debt-to-income ratio typically ≤45% (up to 50% with compensating factors).
• Mandatory homebuyer education (free via DHCD-approved counselors or online courses).

Down Payment and Closing Cost Assistance (DPA):

Standard DPA: Up to 5% of purchase price (max ~$15,000–$25,000 depending on loan/program) as deferred second mortgage (0% interest, no monthly payments; repayable on sale/refinance/payoff).
Forgivable DPA (in select programs): Portions forgiven after occupancy period (e.g., 5–10 years).
Eligibility: Must pair with MMP first mortgage; income-based; minimum buyer contribution often required.

Maryland Mortgage Credit Certificate (MCC):

Description: Federal tax credit up to 30% of annual mortgage interest (max $2,000/year) for life of loan; combinable with MMP mortgages.
Eligibility: First-time buyers or targeted-area purchases; meet income limits.

Local Programs (Examples):

County/city programs offer additional deferred/forgivable assistance—funding limited; verify local housing authorities or DHCD partners.

Baltimore City / Baltimore County

Baltimore Homeownership Incentive Program: Up to $5,000–$10,000 deferred/forgivable for down payment/closing in city/county limits; income-based; counseling required—check baltimorecity.gov/housing or baltimorecountymd.gov.

Montgomery County

Montgomery County Down Payment Assistance: Assistance through regional partners (often up to $20,000 deferred) for low/moderate-income buyers; education required—see montgomerycountymd.gov/housing.

Prince George's County

Prince George's County Homeownership Programs: Local grants/loans (up to $15,000–$25,000 deferred/forgivable) for eligible first-time buyers—check pgcc.gov/housing.

Additional Information:

• USDA Loans: 0% down in eligible rural Maryland areas; income limits apply.
• VA Loans: 0% down for eligible veterans/active-duty military.
• FHA Loans: 3.5% minimum down (580+ credit; 10% if below 580).

Maryland programs emphasize flexible DPA and targeted support—always confirm with an MMP-approved lender or dhcd.maryland.gov. Seeking Agents® connects you with Maryland agents who understand these programs and compete to offer reduced commissions or added services—free for buyers/sellers!