If you’re hoping to buy your first home in Maryland, chances are the down payment is one of the biggest things holding you back. You’re not alone.
For many buyers , even those with steady income, decent credit, and a clear sense of what they can afford , saving tens of thousands of dollars upfront can feel impossible.
It’s one of the most common reasons qualified buyers delay taking the leap into homeownership. Rent keeps rising, interest rates shift, but the cost of entering the market feels permanently out of reach.
The reality? You may not need as much upfront as you think.
Maryland offers a wide range of down payment assistance programs designed to help first-time buyers (and in some cases, repeat buyers) cover their upfront costs. These programs include:
- Grants that don’t need to be repaid
- Deferred loans that only come due if you move or refinance
- Matched funds that increase your savings
- And layered support through the Maryland Mortgage Program (MMP)
Still, many eligible buyers either don’t know these programs exist or assume they won’t qualify. That’s where the right guidance, and the right loan officer, can make a real difference.
In this guide, I’ll walk through Maryland’s most helpful down payment assistance options, who qualifies, how they work, and what to expect during the process. If buying a home feels out of reach, this may be exactly what helps you get in the door.
What homebuyer programs and grants do you qualify for in Maryland?
Grab a free spot in one of my weekly Buyer Q&A sessions!
What is Down Payment Assistance?
Down payment assistance (DPA) refers to financial help that lowers the upfront cost of buying a home, often by thousands of dollars. If saving for a down payment is the barrier between you and homeownership, DPA programs are designed to bridge that gap.
These programs typically come in a few different forms:
Grants
Grants are funds that do not need to be repaid, as long as you meet the program’s requirements (such as living in the home for a certain number of years). These are often the most sought-after form of assistance because they function like a gift toward your purchase.
Deferred Loans
Deferred loans are second mortgages that don’t require repayment until you sell the home, refinance, or pay off your first mortgage. They often carry 0% interest, making them a low-risk way to ease the burden of upfront costs.
Forgivable Second Liens
Some down payment assistance programs offer support in the form of a second loan that’s fully forgiven after a set number of years, typically between five and fifteen, as long as you stay in the home and meet the program’s requirements.
These options are especially helpful because they provide upfront help without long-term repayment, as long as you don’t move, sell, or refinance too soon. In short, you get the benefit now with no strings later, as long as you stick to the terms.
What About Closing Costs?
While DPA is focused on the down payment, many Maryland programs also help with closing costs, those additional fees for appraisals, title searches, and more that can add up quickly. Some programs combine support for both, reducing the total cash needed to close.
Don’t Assume You Won’t Qualify
Many buyers wrongly assume these programs are only for low-income applicants or come with complex strings attached. In reality, a wide range of Maryland homebuyers , including middle-income professionals, may qualify. Often, it’s simply a matter of knowing what’s available and how to apply.
Maryland Mortgage Program (MMP) Overview
When it comes to down payment assistance in Maryland, the Maryland Mortgage Program (MMP) is the state’s flagship offering and it’s where most buyers should start.
Administered by the Maryland Department of Housing and Community Development, MMP offers a combination of affordable mortgages and flexible assistance options. It’s designed specifically for Maryland residents who need help covering the upfront costs of homeownership, including down payments and closing costs.
How It Works
The MMP provides a first mortgage through approved lenders, paired with a second loan or grant to help with upfront costs. This structure makes it easier for first-time and repeat buyers to qualify, purchase sooner, and keep more savings in their pocket.
What MMP Covers
With MMP, you may be eligible for:
- Down payment assistance in the form of a loan or grant
- Closing cost support to help cover fees like inspections, title services, and appraisals
- Fixed-rate mortgages at competitive interest rates
- Access to Partner Match Programs (where employers or community organizations match your contribution)
- Optional add-ons like the Mortgage Credit Certificate (MCC), which provides long-term tax savings
Who Qualifies?
MMP is available to:
- First-time homebuyers (or those who haven’t owned a home in 3+ years)
- Buyers purchasing in Targeted Areas (even if not first-time buyers)
- Households within income and purchase price limits, which vary by county and household size
- Buyers using an MMP-approved lender and completing a homebuyer education course
MMP isn’t just a single program, it’s a platform that connects you to multiple layers of support. Whether you’re looking for a grant, a forgivable loan, or both, MMP offers a flexible framework that fits different budgets, locations, and life stages.
MMP Loan Options That Include Down Payment Assistance
The Maryland Mortgage Program isn’t a one-size-fits-all product. It offers a range of loan options, each designed to meet different needs and financial profiles. Some are ideal for buyers who want forgivable assistance. Others work better for buyers planning to move within a few years.
Let’s walk through the most popular MMP options that include down payment and closing cost support.
A. Flex 5000
The Flex 5000 is one of MMP’s most commonly used options. It provides a $5,000 loan to help cover your down payment and/or closing costs.
- 0% interest
- Deferred repayment (no monthly payments)
- Only repaid when you sell, refinance, or pay off your mortgage
- Works with FHA, VA, USDA, and conventional loans
This is a great fit for buyers who need a cushion upfront but don’t want to add more to their monthly expenses.
B. Flex 3% Loan or Grant
The Flex 3% option helps you cover 3% of your first mortgage and you can choose whether that support comes as a loan or a true grant.
- Flex 3% Loan:
- 0% interest
- Deferred repayment
- Ideal if you want the full 3% and don’t mind eventual repayment
- Flex 3% Grant:
- Never repaid
- Immediate, no-strings help
- Grant amount may be slightly lower than the loan option
These options are especially helpful for buyers using conventional loans that require a minimum 3% down.
C. 1st Time Advantage Programs
The 1st Time Advantage line is tailored specifically for first-time buyers. These programs combine competitive interest rates with various forms of assistance.
- 1st Time Advantage 5000: $5,000 in down payment assistance
- 1st Time Advantage 3% Loan: 3% of the loan amount, repayable only when you move or refinance
- 1st Time Advantage 3% Grant: No repayment required
- Can be combined with an MCC tax credit or local grants
If you're buying your first home and want as much support as possible, this is often the best fit.
D. Partner Match Programs
MMP also offers Partner Match options that match contributions from:
- Employers
- Community organizations
- Local governments
If you’re receiving any down payment help from outside sources, MMP may match it dollar for dollar, up to certain limits. These matches are often forgivable loans with no interest.
This is a powerful way to stretch your savings further and reduce your out-of-pocket expenses.
Together, these loan options create a flexible system where you can mix and match assistance based on your eligibility, loan type, and financial goals.
County & City-Specific Assistance in Maryland
While statewide programs like MMP offer a strong foundation, many Maryland counties and cities offer their own down payment assistance programs, often in addition to what the state provides. These local programs can dramatically reduce how much you need to bring to the table.
Below are some of the most popular and generous options available.
Prince George’s County – Pathway to Purchase
One of the most robust local programs in Maryland, Pathway to Purchase offers:
- Up to $25,000 in assistance for down payment and closing costs
- 0% interest deferred loan
- Forgiven after 10 years of owner-occupancy
- Available to first-time buyers or those purchasing in targeted areas
- Requires completion of homebuyer education
This program is especially helpful in a competitive market like Prince George’s County, where even entry-level homes come with high upfront costs.
Baltimore County – Settlement Expense Loan Program (SELP)
The SELP provides targeted support for first-time buyers purchasing in certain designated Community Conservation Areas.
- Up to $10,000 in settlement (closing cost) assistance
- 0% interest loan, forgiven after 15 years if you remain in the home
- Can be used in conjunction with MMP or other assistance programs
- Income and purchase price limits apply
It’s a strong option for buyers looking to purchase in revitalization zones or older neighborhoods with affordable inventory.
Other Local Programs Worth Exploring
Many other counties and municipalities offer smaller-scale or specialized programs. A few examples:
- Montgomery County occasionally offers limited grants tied to housing developments
- Howard County operates its own buyer assistance fund for moderate-income buyers
- City of Frederick has partnered with local nonprofits to offer additional resources
These programs change frequently, so it’s worth checking with your loan officer or local housing authority to see what’s currently available in your area.
Stacking local programs with statewide assistance is one of the smartest strategies for lowering your upfront costs, and one that an experienced loan officer can help you navigate.
Who Qualifies for Down Payment Assistance?
One of the most common misconceptions about down payment assistance is that it’s only available to very low-income buyers, but that’s far from true. In Maryland, a wide range of buyers qualify for help. The key is knowing what the programs look for and how eligibility is defined.
Here’s what typically determines whether you qualify:
1. First-Time Buyer Status
Most programs define a “first-time buyer” as someone who hasn’t owned a home in the past three years. So even if you’ve owned before, you may still qualify, especially if you’re re-entering the market after renting.
Some local programs and MMP options even waive the first-time buyer requirement if you’re purchasing in a designated Targeted Area or are a veteran.
2. Income Limits
Maryland’s programs are designed to help middle-income buyers, not just low-income households. Income limits vary by:
- County
- Household size
- Loan type
For example, a two-person household buying in Montgomery County can earn up to $185,640 and still qualify under MMP guidelines. In other counties, the limit may be lower or higher.
3. Property Type & Location
Most programs require you to:
- Purchase a primary residence (no vacation homes or investment properties)
- Buy within Maryland and sometimes within specific counties or zip codes
- Stay within purchase price limits, which vary by area
Targeted Areas offer more flexible eligibility and may come with higher income caps or added benefits.
4. Asset Limits
Some programs limit eligibility if you have significant liquid assets, usually defined as cash or easily accessed funds worth 20% or more of the purchase price. Retirement accounts typically don’t count toward this limit.
The bottom line?
You don’t need perfect credit or a massive income to qualify. In fact, many Maryland buyers are surprised to find out they’re eligible for $5,000, $10,000, or more in down payment support, sometimes in the form of a grant.
How a Loan Officer Helps You Access These Programs
Knowing that down payment assistance exists is one thing. Actually getting it? That’s where a loan officer becomes important, especially one who knows the Maryland landscape inside and out.
1. Matching You with the Right Program
Not every program works for every buyer. Some are better for FHA loans. Others work best if you’re using a conventional loan or purchasing in a specific county. A knowledgeable loan officer will look at your financial picture, your goals, and your location to match you with the most effective combination of programs, whether that’s a $5,000 deferred loan or a grant that never needs to be repaid.
2. Avoiding Mistakes That Can Cost You
One missed form or misunderstood eligibility rule can mean missing out on thousands in support. Your loan officer handles the fine print like income caps, program stacking rules, or targeted area requirements. It also keeps you clear of costly missteps that could delay or derail your purchase.
3. Handling the Process Start to Finish
Down payment assistance usually means extra paperwork, multiple approvals, and careful timing. A loan officer ensures every step — from pre-qualification to closing — is done smoothly and on schedule. They also coordinate with real estate agents, housing counselors, and underwriters so nothing gets missed.
Why Local Expertise Matters
Many programs vary by county, and Maryland’s rules shift regularly. That’s why working with someone like me, who specializes in helping Maryland buyers, is a major advantage. I’m not just familiar with these programs, I work with them daily and know how to help you get the most from them.
Make Maryland’s Programs Work for You
If saving for a down payment has been the one thing holding you back from buying a home in Maryland, you’re not alone and you’re also not out of options.
With the right support, it’s entirely possible to become a homeowner without draining your savings. From statewide resources like the Maryland Mortgage Program to generous county-level grants and deferred loans, there are real solutions designed to help people just like you take that first step.
The key is not assuming you don’t qualify. Many buyers, including teachers, nurses, government employees, and young professionals, are eligible for thousands in assistance without realizing it. Others are just missing the guidance to put everything together.
Buying a home is a big move, but it doesn’t have to feel impossible. You don’t need to do this alone, and you don’t need to guess your way through it.
Not sure what you qualify for? Contact me for expert help navigating Maryland’s down payment assistance options. He’ll walk you through the best programs for your situation and help you make a confident, informed next step toward homeownership.
Sources:
- Maryland Mortgage Program – Overview of Programs
https://mmp.maryland.gov/Pages/Programs.aspx
- 1st Time Advantage Loans
https://mmp.maryland.gov/pages/1sttimeadvantage.aspx
- Flex Loans
https://mmp.maryland.gov/Pages/FlexLoans/default.aspx
- Partner Match Programs
https://mmp.maryland.gov/pages/downpayment.aspx
- SmartBuy 3.0 Program
https://mmp.maryland.gov/Pages/SmartBuy.aspx
- HomeStart Program
https://mmp.maryland.gov/Pages/HomeStart.aspx
- Eligibility & Income Limits
https://mmp.maryland.gov/Pages/Eligibility.aspx
- Pathway to Purchase – Prince George’s County
https://www.princegeorgescountymd.gov/DocumentCenter/View/3626/Pathway-to-Purchase-Guidelines-PDF
- Baltimore County SELP Program
https://www.baltimorecountymd.gov/departments/planning/housingopportunities/selp.html
