First-Time Homebuyer Programs in Maryland

Down Payment Assistance Programs

• Maryland Mortgage Program (MMP) 1st Time Advantage. DHCD's flagship 30-year fixed-rate first mortgage for first-time buyers (and repeat buyers in federally targeted areas), available with FHA, VA, USDA, or conventional underwriting and a below-market interest rate. The first mortgage that most other MMP assistance layers on top of.
• Maryland Mortgage Program Flex. An MMP variant for repeat buyers and buyers outside the standard 1st Time Advantage eligibility criteria. Provides a 30-year fixed-rate first mortgage at a competitive rate and is compatible with Partner Match and most local programs. Useful for buyers who don't meet first-time buyer rules but still need a below-market rate and assistance access.
• MMP Partner Match. Provides up to $5,000 in down payment and closing cost assistance through dollar-for-dollar matching grants from participating employers, nonprofits, builders, or local jurisdictions. Partner Match funds are layered on top of an MMP first mortgage and combined with the buyer's own savings. The full list of participating Partner Match organizations is published on the Maryland Mortgage Program website - confirm your employer or local jurisdiction participates before assuming eligibility.
• MMP Down Payment Assistance Loans (SmartBuy, You've Earned It, and Targeted Programs). DHCD administers a family of MMP DPA loan products including SmartBuy (designed to help buyers with student loan debt by paying off student loans at closing), You've Earned It (a reduced-rate option for buyers with $25,000+ in student loan debt), and targeted programs for veterans, teachers, healthcare workers, and first responders. Most are structured as deferred 0% interest second mortgages with terms tied to a multi-year owner-occupancy period.
• Maryland HomeCredit (MCC). Maryland's federal Mortgage Credit Certificate, worth 25% of annual mortgage interest paid (capped at $2,000 per year), applied directly against your federal income tax bill for the life of the loan. Issued at closing through an MMP-approved lender alongside a Maryland Mortgage Program first mortgage.

Income and Purchase Price Limits

MMP income and purchase price limits vary by county and household size. Income limits are typically $115,000 to $190,000+ depending on the county and program, with Montgomery and Prince George's counties (DC metro) at the higher end. Purchase price limits are generally $500,000 to $700,000+ statewide, with higher ceilings in federally designated targeted areas and in DC-metro counties. Always confirm current limits with an MMP-approved lender or at MMP.Maryland.gov before assuming eligibility.

City and County Programs Worth Knowing

Maryland's largest cities and DC-metro counties run their own first-time buyer programs that stack on top of MMP. In Baltimore, Montgomery County, and Prince George's County, the local layer is often the difference between an offer that pencils and one that doesn't.

• Baltimore City Employee Homeownership Program. Administered by the City of Baltimore for full-time City of Baltimore government employees purchasing a primary residence within Baltimore city limits, this program provides up to $10,000 in down payment and closing cost assistance as a forgivable second loan - typically forgiven over a multi-year owner-occupancy and continued-employment period. Buyers must be City employees at closing, complete a HUD-approved homebuyer education course, and the home must be the buyer's primary residence. The program is designed to stack with MMP first mortgages and other Baltimore City incentives.
• Baltimore City Live Near Your Work Program. Administered by the City of Baltimore for buyers whose employer participates in the Live Near Your Work program and who purchase a primary residence within Baltimore city limits (in many cases, within a defined radius of the employer). Provides up to $5,000 in down payment and closing cost assistance, structured as an employer-funded grant matched dollar-for-dollar by the City of Baltimore. The participating-employer list is published by the City - confirm your employer participates before assuming eligibility. Live Near Your Work is designed to stack with MMP and the Baltimore City Employee Homeownership Program where eligible.
• Montgomery County Moderately Priced Dwelling Unit (MPDU) Program. Administered by the Montgomery County Department of Housing and Community Affairs, the MPDU Program is the long-running inclusionary zoning program that creates a price-restricted inventory of new and resale homes in Montgomery County. Income-qualified first-time buyers (typically up to roughly 70% AMI) can purchase MPDU homes at substantially below-market prices, and Montgomery County provides up to $25,000 in down payment and closing cost assistance through paired DPA products for MPDU and certain market-rate purchases. Buyers must complete the MPDU homebuyer education course, meet income and asset limits, and the home must be the buyer's primary residence. The MPDU program is designed to stack with MMP first mortgages.
• Prince George's County Down Payment Assistance. Administered by the Prince George's County Department of Housing and Community Development for first-time buyers purchasing a primary residence within Prince George's County, this program provides up to $10,000 in down payment and closing cost assistance as a deferred or forgivable second loan, with terms tied to a multi-year owner-occupancy period. Income limits are tied to area median income (typically up to 80% AMI), buyers must complete a HUD-approved homebuyer education course, and the home must be the buyer's primary residence. The PG County DPA is designed to stack with MMP first mortgages.
• Anne Arundel, Howard, and Other Local Programs. Anne Arundel County, Howard County, and the cities of Frederick, Rockville, and Gaithersburg periodically fund additional homebuyer programs layering on top of MMP. Availability fluctuates by funding cycle - confirm with the relevant county or city housing department before counting on local assistance.

Baltimore, Montgomery County MPDU, and Prince George's County DPA all run on funding cycles that can exhaust mid-year, and homebuyer education must be completed before application - not after offer acceptance. Plan the education step into the front of your timeline, confirm your target property falls inside the relevant city or county boundary (and, for MPDU, that it's an MPDU-eligible unit), and verify current funding availability with the administering agency before counting on local assistance in your offer.

FHA Loan Requirements in Maryland

FHA loans are widely used by Maryland first-time buyers and are compatible with the Maryland Mortgage Program, Partner Match, and SmartBuy / You've Earned It DPA products, as well as the Baltimore, Montgomery County MPDU, and Prince George's County local programs. In the DC-metro Maryland counties, FHA loan limits are well above the standard ceiling, keeping FHA financing viable across most of the market.

How to Apply

1. Confirm you have not owned a primary residence in the past three years for MMP 1st Time Advantage (MMP Flex relaxes this for repeat buyers). Waivers apply in federally targeted areas and for qualifying veterans.
2. Check your credit score - 580 is the FHA minimum for 3.5% down, and MMP typically requires 640 or higher.
3. Review current MMP income and purchase price limits for your county at MMP.Maryland.gov.
4. If your employer is on the MMP Partner Match list, request a Partner Match letter from your employer's HR or benefits office before applying - lenders can confirm the current participating-employer list.
5. If you're a City of Baltimore employee, contact the City of Baltimore Department of Housing and Community Development about the City Employee Homeownership Program. If your employer participates in Live Near Your Work, request that match separately.
6. If you're buying in Montgomery County, contact the Montgomery County Department of Housing and Community Affairs to confirm MPDU inventory availability or eligibility for market-rate Montgomery County DPA, and enroll in the required MPDU homebuyer education course early.
7. If you're buying in Prince George's County, contact PG County's Department of Housing and Community Development and confirm current DPA availability.
8. Complete a HUD-approved homebuyer education course - required by MMP and accepted by Baltimore, MPDU (with their specific course), and PG County. Confirm the specific required course before enrolling.
9. Select an approved lender on both the MMP list and the relevant local program list - the overlap is smaller than MMP's full list, so ask directly.
10. Apply through your approved lender, who will coordinate the MMP application, Partner Match grant, local program submission, and Maryland HomeCredit issuance simultaneously.

FAQ