4 First Time Homebuyer Programs in Maryland: Do You Qualify?

Written by Matthew Borgerson, Loan Officer | May 9, 2025 12:15:00 PM

Buying your first home is a big milestone. But in Maryland, it often comes with big challenges.

Between rising property prices, stiff competition in popular areas, and the upfront costs of securing a mortgage, many first-time buyers feel stuck before they even get started.

The good news? Maryland offers a wide range of programs specifically designed to make homeownership more accessible for first-time buyers. From down payment assistance to closing cost help and discounted loan products, there are real resources available if you know where to look.

That’s the catch, though: most people don’t. Many buyers either miss out on thousands in available support or spend weeks trying to piece together information from different sources. It’s not always clear who qualifies, how to apply, or what combinations of programs are possible.

This blog is here to simplify all of that. I'll break down everything you need to know about first-time home buyer programs in Maryland including how they work, who they’re for, and how they can help you get into your first home sooner than you think.

What homebuyer programs and grants do you qualify for in the DMV?

Grab a free spot in one of my weekly Buyer Q&A sessions!

What Counts as a First-Time Buyer in Maryland?

In Maryland, the term “first-time homebuyer” might mean more than you think. Officially, you’re considered a first-time buyer if you haven’t owned a home in the past three years. That means even if you previously owned property, you may still qualify, as long as enough time has passed.

There are also exceptions to the rule. For example, if you’re purchasing in a designated Targeted Area, the first-time buyer requirement is waived. This can be especially helpful for repeat buyers looking to get back into the market. Veterans and buyers using certain loan types may also be exempt from the three-year rule.

Who Qualifies for First-Time Buyer Programs in Maryland?

Eligibility for Maryland’s homebuyer programs is based on several factors:

Income limits: These vary depending on household size and the county where you’re buying. For example, a 2-person household in Montgomery County has a limit of $185,640.
Property location: Targeted Areas often come with higher income limits and more flexible requirements. Counties like Baltimore City and Allegany County are entirely designated as Targeted Areas.
Liquid asset limits: If your liquid assets equal 20% or more of the home’s purchase price, you may be ineligible for some assistance programs.

Unique Local Benefits

Several Maryland counties offer their own buyer assistance:

Prince George’s County: The Pathway to Purchase program offers up to $25,000 in down payment and closing cost support. It’s a 0% interest loan that’s forgiven after 10 years.
Baltimore County: The Settlement Expense Loan Program (SELP) provides up to $10,000 in closing cost assistance, forgivable after 15 years in the home.

Understanding these guidelines is key to unlocking the full potential of Maryland’s buyer assistance programs, and could mean the difference between delaying your purchase and getting the keys to your first home.

Maryland Mortgage Program (MMP)

If you're buying your first home in Maryland, the Maryland Mortgage Program (MMP) is likely your most powerful tool. Managed by the Maryland Department of Housing and Community Development, the MMP is designed to help first-time buyers overcome the most common hurdles: high upfront costs, lack of savings, and confusing loan terms.

It’s not a single program, it’s a suite of flexible mortgage options bundled with financial support. The goal? To make buying a home in Maryland more realistic and more affordable.

What Is the MMP?

The MMP provides 30-year fixed-rate mortgages through approved lenders, often combined with support for your down payment or closing costs. These aren’t special loans with risky terms, they’re conventional, FHA, VA, or USDA loans made more accessible with added financial benefits.

Who Qualifies?

To be eligible for the Maryland Mortgage Program, you typically need to:

Be a first-time buyer, meaning you haven’t owned a home in the last three years
Stay within income limits, which vary based on household size and county
Purchase a home to be used as your primary residence
Work with a lender approved to offer MMP products

If you’re buying in a Targeted Area, the first-time buyer requirement is waived, giving repeat buyers a second chance.

What Assistance Does MMP Offer?

Down Payment Assistance

Most MMP options come with additional funding to help you cover your down payment. This assistance is often structured as:

Deferred-payment loans (0% interest, repaid only when you sell or refinance)
Grants that do not need to be repaid
Extra support through the Partner Match Program, where matching funds are available if your employer, nonprofit, or local government contributes

Closing Cost Support

Some MMP options allow you to apply assistance funds toward closing costs, easing the financial pressure when it’s time to seal the deal.

Fixed, Low-Interest Mortgages

All MMP loans offer 30-year fixed-rate terms, giving you the security of a consistent monthly payment. Rates are often lower than what you’d find on your own, particularly when combined with down payment or closing cost assistance.

Partner Match Programs

If you're eligible for outside assistance such as from your job, a city program, or a housing nonprofit, the MMP’s Partner Match option may match those funds. This can significantly boost the amount of money you have available for your purchase.

Key First-Time Buyer Programs in Maryland

The Maryland Mortgage Program isn’t just one product, it's a suite of flexible loan and assistance options designed to meet different needs. Whether you're working with a modest income, need help with your down payment, or are carrying student loan debt, there's likely a program that fits.

Here’s a breakdown of the most important offerings for first-time buyers in Maryland and how to figure out which one’s right for you.

1. 1st Time Advantage Loan

The 1st Time Advantage is one of Maryland’s most popular mortgage options for first-time buyers. It offers a 30-year fixed-rate mortgage and is typically paired with some form of down payment or closing cost assistance.

There are two main variations:

1st Time Advantage Direct – Just the fixed-rate loan, without additional assistance.
1st Time Advantage 5000 – Comes with a $5,000 deferred-payment loan to help with upfront costs.

Best for: Buyers who are early in their careers, need financial help at closing, or want a stable monthly payment without surprises.

2. Flex 5000 and Flex 3% Loans

The Flex series is designed to give buyers more choice, especially if they don’t qualify for other programs. These options also pair 30-year fixed mortgages with down payment assistance.

Flex 5000

Comes with $5,000 in down payment/closing cost assistance
Funds are a 0% interest, deferred-payment loan
Repayment isn’t due until you sell, refinance, or pay off your mortgage

Flex 3% Loan

Offers a 3% loan based on your mortgage amount
Example: If your loan is $300,000, you could receive $9,000 in assistance
Also deferred and interest-free until payoff

Eligibility Notes:

You don’t have to be a first-time buyer for Flex loans
Income and home price limits apply
Available in both targeted and non-targeted areas

These loans are especially useful for buyers who don’t have large savings but want to secure a competitive rate and reduce out-of-pocket costs.

3. Partner Match Programs

Maryland also offers Partner Match options which is a great way to boost your assistance if you already have help lined up. If you're getting support from an employer, nonprofit, or local government, MMP may match that contribution, up to a certain amount.

Common eligible sources:

Employer homebuyer programs
Local housing nonprofits
County- or city-level assistance programs
Community development grants

Example: If your employer offers $3,000 in down payment help, the MMP may match that with an additional $3,000, giving you $6,000 total in extra funds.

Each match is case-by-case, and availability depends on whether the partner organization is participating in the MMP network.

4. HomeStart and SmartBuy 3.0 (for buyers with student debt)

If student debt is holding you back from buying, Maryland offers two key options:

HomeStart

Offers lower interest rates for income-eligible buyers
Can be combined with other MMP assistance
Available only to first-time buyers
Income limits are lower than other programs, so this one works best for modest earners

SmartBuy 3.0

SmartBuy 3.0 allows you to pay off up to $20,000 in student loan debt as part of your home purchase
Requires the home to be eligible under the SmartBuy program (a limited pool of homes)
You must have at least $1,000 in student loan debt to qualify
Buyer must pay off all student debt at closing using the program funds

Best for: Buyers with steady income who are being blocked from buying solely because of student debt obligations.

Federal + Local Support You Can Use Together

One of the most overlooked advantages of buying a home in Maryland is that you don’t have to choose between federal loan programs and state assistance. In many cases, you can use both together.

The Maryland Mortgage Program is built to work with major federal loan types, meaning you can pair the stability and flexibility of a government-backed mortgage with state-level financial assistance.

FHA, VA, and USDA Loans in Maryland

These federally backed loans are widely used by first-time buyers and for good reason:

FHA loans: Require as little as 3.5% down and are accessible to buyers with lower credit scores. These pair especially well with down payment assistance from the MMP. (Learn more in my FHA Loans Guide)
VA loans: For eligible veterans, service members, and surviving spouses, VA loans offer zero down payment and no private mortgage insurance (PMI). These can still be layered with certain MMP offerings — a powerful combination if you're eligible.
USDA loans: Designed for rural and semi-rural areas, USDA loans also offer zero down financing. Some homes in Maryland qualify under USDA guidelines, and you may be able to add local assistance depending on the program and property.

Example: Combining FHA with Maryland Assistance

Let’s say you’re a first-time buyer using an FHA loan to purchase a $320,000 home in Prince George’s County. You could:

Use the FHA loan as your primary mortgage
Add the MMP’s Flex 5000 product to receive $5,000 toward your down payment or closing costs
Potentially stack on a Partner Match if your employer offers housing support

The result? Lower out-of-pocket costs at closing and a smoother path to homeownership.

What Documents You’ll Need to Apply

Applying for a first-time homebuyer program in Maryland requires gathering some essential documents, but you don’t have to figure it out alone. A loan officer like me will guide you through each step, helping you stay organized and avoid delays.

Here’s a table-style checklist to help you see what you’ll need:

Category	What to Provide
Income	- Recent pay stubs (last 30 days) - W-2s from the past 2 years - Full tax returns if self-employed
Identification	- Government-issued photo ID - Social Security number or card
Credit	- Authorization to pull your credit report - Explanations for past credit issues (if any)
Bank Statements	- Most recent 2 months of checking/savings account statements - Proof of large deposits
Assets	- Retirement or investment account statements - Gift letters (if receiving down payment help from family)
Property Info (if applicable)	- Signed purchase agreement - Address and details of the home you're buying

How a Loan Officer Helps

You don’t have to navigate this alone. A loan officer like me can:

Let you know which documents apply to your specific loan and program
Help resolve any missing paperwork
Work directly with lenders and underwriters on your behalf

Staying organized and working with someone who knows the process inside and out can make the difference between delays and a smooth process.

Why Work With a Local Loan Officer

These programs come with specific rules, varying income limits, and multiple layers of eligibility that can be hard to untangle on your own.

That’s where working with someone like me makes all the difference.

I bring deep, Maryland-specific expertise and can quickly figure out which programs you may qualify for and, just as importantly, how to bundle them together strategically to maximize your savings. Whether you’re comparing Flex vs. 1st Time Advantage options, looking to stack MMP assistance with an FHA loan, or exploring a Partner Match opportunity, I’ll help you move forward with clarity.

For many first-time buyers, it’s not just the paperwork that feels overwhelming. It’s the pressure of getting everything right. With me, you don’t have to do it alone. You’ll have a local expert guiding you, answering your questions, and helping you avoid the common mistakes that can cost time and money.

Start Strong with the Right Support

Maryland is one of the best states in the country for first-time homebuyers — if you know how to access the programs that are out there. From down payment assistance to closing cost support and low-interest loans, the tools are ready. The challenge is knowing how to use them.

That’s why working with the right loan officer is the smartest first step you can take. You get the benefit of local knowledge, clear advice, and someone who’s fully invested in helping you succeed.

Not sure which programs you qualify for? Contact me for a free consultation and expert help with Maryland’s first-time homebuyer options.

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