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:
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.
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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 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 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.
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.
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.
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.
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.
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.
With MMP, you may be eligible for:
MMP is available to:
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.
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.
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.
This is a great fit for buyers who need a cushion upfront but don’t want to add more to their monthly expenses.
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.
These options are especially helpful for buyers using conventional loans that require a minimum 3% down.
The 1st Time Advantage line is tailored specifically for first-time buyers. These programs combine competitive interest rates with various forms of assistance.
If you're buying your first home and want as much support as possible, this is often the best fit.
MMP also offers Partner Match options that match contributions from:
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.
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.
One of the most robust local programs in Maryland, Pathway to Purchase offers:
This program is especially helpful in a competitive market like Prince George’s County, where even entry-level homes come with high upfront costs.
The SELP provides targeted support for first-time buyers purchasing in certain designated Community Conservation Areas.
It’s a strong option for buyers looking to purchase in revitalization zones or older neighborhoods with affordable inventory.
Many other counties and municipalities offer smaller-scale or specialized programs. A few examples:
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.
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:
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.
Maryland’s programs are designed to help middle-income buyers, not just low-income households. Income limits vary by:
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.
Most programs require you to:
Targeted Areas offer more flexible eligibility and may come with higher income caps or added benefits.
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.
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.
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.
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.
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.
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.
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:
https://mmp.maryland.gov/Pages/Programs.aspx
https://mmp.maryland.gov/pages/1sttimeadvantage.aspx
https://mmp.maryland.gov/Pages/FlexLoans/default.aspx
https://mmp.maryland.gov/pages/downpayment.aspx
https://mmp.maryland.gov/Pages/SmartBuy.aspx
https://mmp.maryland.gov/Pages/HomeStart.aspx
https://mmp.maryland.gov/Pages/Eligibility.aspx
https://www.princegeorgescountymd.gov/DocumentCenter/View/3626/Pathway-to-Purchase-Guidelines-PDF
https://www.baltimorecountymd.gov/departments/planning/housingopportunities/selp.html