First-Time Home Buyer Programs in Maryland

Maryland Mortgage Program (MMP) by DHCD:

MMP 1st Time Advantage:

Eligibility: First‑time buyers, veterans, or buyers in targeted areas.
Offerings: 30‑year fixed mortgage with the lowest MMP rates; cannot be combined with MCC.
Requirements:

• Income within county limits (e.g., ~$128,900 for 1‑2 ppl in Montgomery County). MMP program details.
• Credit score ≥ 640.
• DTI ≤ 50%.
• Homebuyer education required.
• Purchase price ≤ $550,000 (higher in targeted areas).

MMP Flex with Down Payment Assistance:

Benefits: Up to 4% of first mortgage as a 0% deferred loan; eligible to first-time and repeat buyers statewide.
Eligibility: Must pair with MMP first mortgage. More on Flex DPA.

(Partner Match also available with 1st Time Advantage 6000 or Flex 6000 loans.)

Maryland SmartBuy 3.0:

Description: Forgivable loan covering student debt up to 15% of home price (max $20K); must pay off entire loan(s) at closing; forgiven at 20%/year over 5 years.
Requirements: Minimum $1,000 existing student debt; credit ≥ 720; income/DTI same as MMP. SmartBuy 3.0 details.

FHA 203(k) Limited:

Benefits: Finance home purchase + minor renovations up to $75,000; available via approved MMP FHA lenders. Read Directive 2025‑01.

Local Programs:

Baltimore City

Homeownership Incentive: $10K–$20K deferred loan/grant; income ≤ 80% AMI. More info.

Prince George’s County

Pathway to Purchase: Up to $10K deferred loan; income ≤ 120% AMI; first‑time buyers only.

Frederick County

Homebuyer Assistance: Up to $15K deferred loan; income ≤ 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): 25% of interest annually (max $2,000); combinable with Flex but not with 1st Time Advantage.
• Other Loan Options: USDA & VA (0% down), FHA (3.5% down, credit ≥ 580).