Maryland first-time homebuyer grants and down payment assistance (2026)

Picking a 1st Time Advantage product: $6,000, 3%, 4%, 5% or HomeStart

The 1st Time Advantage line is for first-time buyers and carries the program’s lowest rates. Every product with assistance uses the same structure: a 0% second lien with no monthly payment. It comes due when the first mortgage ends through sale, refinance, transfer or payoff ⁠¹. None of these second liens is forgiven ⁠¹.

• 1st Time Advantage Direct. No state assistance and the lowest rate. You can bring outside help from an employer, a builder or a county ⁠¹.
• 1st Time Advantage 6000. A flat $6,000, no more or less. It is the only first-time product that can add Partner Match funds ⁠¹.
• 1st Time Advantage 3%, 4% and 5% Loans. A loan equal to that share of the first mortgage. On a $300,000 mortgage, the 5% loan is $15,000 ⁠¹.
• HomeStart 6%. For households with qualifying income at or below 50% of area median income (AMI). That limit is $47,500 in Allegany, Caroline, Dorchester and Garrett counties and $82,050 in Montgomery, Prince George’s, Frederick and Charles. It is $67,000 in Baltimore City and in Anne Arundel, Baltimore and Howard counties ⁠¹⁠¹⁰.
• MMP-UPLIFT 5%. Only for homes on DHCD’s UPLIFT property list ⁠¹.
• First Homes for First Responders and Teachers. 5% for first responders and teachers buying their first home ⁠¹.

Repeat buyers use MMP Flex: Flex 6000 or the Flex 3% Loan, on the same deferred terms. To use Flex, you must not own any real property at closing ⁠⁴.

What the bigger second lien costs on the Oct. 19, 2026 rate sheet

DHCD posts rates each business day. They lock when the lender reserves the loan ⁠²⁠⁵. MMP loans carry zero points ⁠⁵. The rate climbs as the assistance grows, so compare the monthly cost before taking the largest option.

Scroll the table sideways to see every column.

Rates change daily or more often. DHCD’s review of each file takes up to 3 business days per stage, plus 3 more for each round of conditions ⁠².

Who counts as a first-time buyer, and where the rule is waived

MMP treats you as a first-time buyer if you have not owned residential property for three years or more. That definition is separate from the one used for Maryland recording taxes ⁠⁴. The rule is waived in two cases. The first is a home in a federally designated Targeted Area. The second is an honorably discharged veteran using the one-time exemption with a DD-214 ⁠⁴⁠⁵. Allegany, Caroline, Dorchester, Garrett, Kent and Somerset counties and Baltimore City are fully targeted. Parts of Anne Arundel, Baltimore, Frederick, Harford, Montgomery, Prince George’s, Washington and Wicomico are targeted. You can check an address in the MMP Mapper ⁠⁴.

Every borrower must be at least 18, have a Social Security number (U.S. citizenship is not required) and live in the home. Liquid assets above 20% of the price trigger an asset test ⁠⁴⁠⁵. Non-occupant co-signers are not allowed. A non-borrowing spouse must also meet the income and ownership rules ⁠⁵.

County income and price limits effective June 24, 2026

MMP counts household income: the income of every adult 18 or older who will live in the home, from all sources. It is not just the income on the loan application. Households of 1-2 people and of 3 or more people have separate limits. A doctor-certified pregnancy counts as one more person ⁠⁴. Loan amounts are capped at $832,750, including financed FHA, VA or USDA fees ⁠³.

Source: MMP Attachment III, effective June 24, 2026 ⁠³. For USDA (RHS) loans, the lower of this limit and USDA’s own limit applies ⁠³.

Credit score, debt ratio and the approved-lender rule

MMP’s standard purchase fact sheet sets a 640 minimum representative credit score for FHA, VA and USDA loans. The same 640 applies to conventional loans: automated approvals up to 97% loan-to-value, or manual underwriting up to 95% ⁠⁵. The maximum debt-to-income ratio follows the stricter of MMP, U.S. Bank (the master servicer) and the insurer. FHA, VA and USDA approvals are generally capped at 45% for credit scores under 680 and 50% at 680 or higher. Fannie Mae and Freddie Mac automated approvals go up to 50% ⁠⁵. The fact sheet is dated Jan. 3, 2024; lenders may add overlays.

Only a state-approved MMP lender can originate these loans ⁠¹. DHCD’s lender directory, linked under Verified resources, lists more than 100 of them. Each one serves borrowers statewide, wherever its branches are.

Education. Every borrower must finish a homebuyer education course approved by HUD, Fannie Mae or Freddie Mac before loan approval. The certificate must be dated within 12 months before settlement and name each borrower ⁠⁵⁠⁶. DHCD lists online options including Fannie Mae’s HomeView, Framework, Finally Home! (MGIC), Essent and Arch MI, and some charge a fee. Counseling from a HUD-approved agency also qualifies ⁠⁶.

Partner Match, SmartBuy and the closed HomeCredit certificate

Partner Match adds up to $2,500 on top of a 1st Time Advantage 6000 or Flex 6000 loan. MMP matches dollar for dollar what an approved employer, college, builder or community partner gives you, for up to $8,500 in total state assistance. The match uses the same 0% deferred terms ⁠⁸.

Maryland SmartBuy 3.0 pays off student loans at closing. It covers up to 15% of the price, at most $25,000, through an unsecured 0% note forgiven 20% a year over five years ⁠⁹. It requires a conventional loan, a 720 credit score and a SmartBuy-approved lender. You can add the $6,000 assistance, or 6% at or below 50% AMI, but not Partner Match ⁠⁹.

Maryland HomeCredit, Maryland’s mortgage credit certificate, is closed to new reservations. Lenders can only reissue an existing certificate when the owner refinances ⁠⁷.

County and city money that stacks on an MMP loan

• Prince George’s County, Pathway to Purchase. Up to $50,000 at 0% for first-time buyers at or below 80% AMI. Price caps are $448,000 for a resale home and $485,000 for new construction. As of Oct. 8, 2026, the county said nothing is forgiven in years 1-5, then 10% a year for 10 years. That makes the loan fully forgiven after 15 years in the home ⁠¹². DHCD’s MMP page still describes the older 10-year schedule. You need an 8-hour HUD-certified class and a county-approved lender.
• Montgomery County, Montgomery Homeownership Program. Up to $50,000 at 0%, but no more than 40% of household income. It is due on sale, refinance or transfer, or after 30 years ⁠¹¹. Funds are nearly gone: DHCD’s Oct. 19, 2026 rate sheet showed 0.30 of a reservation left, and new requests go by email only ⁠². MEDPAL, for county employees, had 5.5 reservations left ⁠².
• Baltimore City, Homeownership Incentives. You need counseling from a City-approved agency within the year before your offer, plus at least $1,000 of your own money. Most incentives are loans forgiven after five years in the home. The First-Time Homebuyers Incentive (FTHIP), for buyers at or below 80% AMI, covers part of closing costs. It can also reduce your loan balance or buy down your interest rate ⁠¹³. On Oct. 5, 2026, $613,164 of FTHIP money remained. So did 78 City employee awards ($5,000 or $10,000), 60 Buying Into Baltimore lottery awards ($5,000), 83 Live Near Your Work grants and 63 Vacants to Value Boosters ($10,000) ⁠¹³.
• Howard County, SDLP. Deferred loans at 2 points below your mortgage rate, capped at 3%. Amounts are HomeStarter $40,000 (80% of the Baltimore-area median, $106,800 for four people), HomeSteader $25,000 and DreamMaker $15,000 ⁠¹⁴. HomeStarter forgives up to 30% after 15 years. All loans require a 45% back-end ratio or lower and $1,000 plus one month’s payment in savings. Funds are first come, first served ⁠¹⁴.
• Anne Arundel County, Mortgage Assistance Program (ACDS). Up to $50,000 at 0%, due on sale or transfer or after 30 years. The limit is 100% of AMI: $133,500 for four people as of June 1, 2026. MAP has no credit score minimum but caps DTI at 45%. Its required 8-hour counseling course is booked 6-8 weeks out ⁠¹⁵.

Getting an MMP loan closed, step by step

1. Check your county row

   Count every adult in the household and compare with the June 24, 2026 table. Check Targeted Area status if you owned a home recently ⁠³⁠⁴.

2. Get a lender referral

   Use DHCD’s referral form or lender directory. If you plan to use SmartBuy or a county program, ask whether the lender is approved for it ⁠¹⁠⁹.

3. Take the education course

   Finish it before you sign a contract. In Anne Arundel and Baltimore City, use the county or city’s own counseling ⁠⁶⁠¹³⁠¹⁵.

4. Get pre-approved and choose a product

   Compare Direct, 6000 and 3%-5% on the day’s rate sheet ⁠².

5. Sign a ratified contract

   MMP will not reserve a loan without one ⁠⁵.

6. Gather documents

   Expect pay stubs, W-2s and bank statements, plus income proof for every adult in the household. Bring a DD-214 for the veteran exemption and a Partner Match verification form if you use one ⁠⁴⁠⁵⁠⁸.

7. Apply for local money in parallel

   Allow at least 21 business days for Pathway to Purchase and 45-60 days for ACDS. Howard needs its file 9 business days before closing, and Baltimore City at least 30 days before settlement ⁠¹²⁠¹³⁠¹⁴⁠¹⁵.

8. Close and keep the second-lien note

   You will need the payoff figure if you sell or refinance ⁠¹.

If one lender declines you, another MMP lender can review your file. Compare states on the first-time homebuyer grants page, and see other Maryland guides on the Maryland page.