Maryland’s main first-time buyer help is the Maryland Mortgage Program (MMP) from the state’s housing department (DHCD), which pairs a 30-year fixed first mortgage with down payment assistance: $6,000 or 3% to 5% of the loan as a 0% deferred second loan. The $6,000 option comes due when you sell, refinance or pay off the first mortgage. You count as first-time if you haven’t owned and lived in a home in the past 3 years, and the rule is waived in Targeted Areas and for eligible veterans.
That covers most of it. Among Maryland first-time home buyer programs, MMP is the statewide one, so it’s the place to start. Inside it, the real decision has two parts. First, which product line you qualify for: 1st Time Advantage or Flex. Then, which assistance option you take.
That second choice deserves more thought than it usually gets. The help is a loan, and it comes back due later.
Key takeaways
- MMP pairs a 30-year fixed loan with $6,000 or a percentage of your loan.
- Most MMP help is a 0% deferred second loan, not a grant.
- “First-time” means no owned primary home in 3 years, with exceptions.
- The comparison table below puts the MMP assistance options side by side.
How the Maryland Mortgage Program works
The Maryland Mortgage Program is run by the Community Development Administration’s Single Family Housing unit, part of the Maryland Department of Housing and Community Development in Lanham (MMP fact sheet). You don’t apply to the state. You apply through one of MMP’s state-approved mortgage lenders, and that lender can pre-qualify you.
Here’s the part people skip. Being eligible for MMP doesn’t guarantee you get the loan. The lender decides, using normal industry standards plus MMP, servicer and insurer guidelines (MMP loan eligibility). So choose your lender with care.
The baseline rules are short. You need to be at least 18, have a valid Social Security number and live in the home as your primary residence. U.S. citizenship isn’t required. New construction built within the last 12 months has to be in a Priority Funding Area.
I won’t quote interest rates here. They move daily, and an MMP-approved lender can give you today’s number for your exact loan.
Who counts as a first-time buyer in Maryland
MMP’s definition is looser than the label. You’re a first-time homebuyer if you haven’t owned a home you lived in as your primary residence at any time in the past 3 years (MMP eligibility rules). Sold a condo four years ago and rented since? You likely count. One heads-up: that’s MMP’s definition only. It isn’t the one used for recording tax purposes.
This is the part of the first time home buyer Maryland conversation that surprises people most. Even if the 3-year rule doesn’t fit you, there are other ways in:
- Flex, anywhere in the state. Repeat buyers can use Flex products anywhere in Maryland if they meet income limits and the other eligibility rules.
- Targeted Areas. Buy in one and you can use any MMP product. For 1st Time Advantage, the program page adds that you’d sell your current home before closing.
- Veterans. An honorably discharged veteran who hasn’t used the first-time homebuyer exemption doesn’t need to be a first-time buyer. Bring your DD-214 and a Veteran First Time Homebuyer Exemption form.
MMP sorts Maryland into three groups:
- Fully targeted: Allegany, Baltimore City, Caroline, Dorchester, Garrett, Kent, Somerset.
- Partly targeted: Anne Arundel, Baltimore County, Frederick, Harford, Montgomery, Prince George’s, Washington, Wicomico.
- No targeted areas: Calvert, Carroll, Cecil, Charles, Howard, Queen Anne’s, St. Mary’s, Talbot, Worcester.
So anywhere in Baltimore City is a Targeted Area. In Baltimore County, Anne Arundel, Montgomery or Prince George’s, it comes down to the exact address. Howard has none. Income limits run slightly higher in Targeted Areas, and MMP points buyers to the Maryland Mortgage Program Mapper to check an address. If you’re shopping in the city, our Baltimore agents can help you check status before you fall for a house.
MMP down payment assistance options compared
Maryland down payment assistance through MMP comes in two shapes: a flat $6,000 or a percentage of your first mortgage. Read the Repayment column twice. Each of these is a second lien on your home, and the 1st Time Advantage page says the $6,000 option comes due when the first mortgage ends. Details below also come from the 5% Loan fact sheet, the MMP Flex page and the First Homes for First Responders and Teachers page.
| Option | Amount | Repayment | Who it’s for |
|---|---|---|---|
| 1st Time Advantage 6000 | $6,000 for down payment and closing costs | 0% second lien, no payments; due when the first mortgage is repaid, refinanced, transferred or sold | First-time buyers or an exception; Partner Match eligible |
| 1st Time Advantage 3% Loan | 3% of the first mortgage | 0% deferred second lien | First-time buyers or an exception |
| 1st Time Advantage 4% Loan | 4% of the first mortgage | 0% deferred second lien | First-time buyers or an exception |
| 1st Time Advantage 5% Loan | Exactly 5% of the total MMP loan; any excess goes to principal | 0%, 30-year deferred second lien | Buyers who own no real property at closing; no Partner Match |
| HomeStart | 6% of the first mortgage | 0%, 30-year deferred | Household income at or below 50% of area median income |
| MMP-UPLIFT | 5% DPA | Confirm terms with your lender | Eligible UPLIFT properties only |
| First Homes for First Responders and Teachers | 5% DPA | 0%, 30-year deferred; repaid when you sell, refinance or transfer | First-time buyers in eligible jobs; no other MMP products or Partner Match |
| Flex 6000 | $6,000 | 0% deferred second lien, due when the first mortgage ends | First-time or repeat buyers; Partner Match eligible |
| Flex 3% Loan | 3% DPA | Confirm terms with your lender | First-time or repeat buyers |
The First Responders and Teachers jobs: firefighter, EMT, paramedic, volunteer firefighter with 12 months documented, police officer, rescue squad member, sworn State Fire Marshal member, 9-1-1 specialist, or full-time state-certified classroom teacher or school counselor. You need to work full time in the role or have a signed, non-contingent offer.
Maryland first-time home buyer programs: 1st Time Advantage vs Flex
Think of it as two doors.
1st Time Advantage is for first-time buyers and the exceptions above. It carries MMP’s lowest 30-year fixed rate and the widest menu. That includes 1st Time Advantage Direct, which has no MMP assistance, usually the most competitive rate, and room for outside assistance. To qualify, you need first-time status or an exception, approved homebuyer education, and MMP’s income, credit score and purchase price limits.
Flex is open to first-time or repeat buyers. Same 30-year fixed structure, shorter menu: Flex Direct with no assistance, Flex 6000 and the Flex 3% Loan. You still need homebuyer education, you still need to fit MMP’s limits, and you can’t own any other real property at closing.
One catch: the Maryland HomeCredit Program (mortgage credit certificates) can’t be layered with 1st Time Advantage. If HomeCredit comes up, ask your lender how it fits the product you’re choosing.
My take? If you qualify for 1st Time Advantage, start there. Then have your lender price Direct against the $6,000 and percentage options side by side. On a larger loan, a percentage can outrun a flat $6,000. On a smaller one, $6,000 plus Partner Match may come out ahead. And if you expect to refinance in a few years, remember that the $6,000 second loan comes due when you do.
2026 MMP income and price limits, sample areas
MMP’s 2026 limits took effect June 24, 2026 (income and purchase price limits PDF). These rows are for non-targeted parts of each county, except Baltimore City, which is fully targeted.
| Area | Income limit (1-2 people) | Income limit (3+ people) | Max acquisition cost |
|---|---|---|---|
| Baltimore City (Targeted) | $164,520 | $191,940 | $955,922 |
| Baltimore County | $140,759 | $161,873 | $782,118 |
| Anne Arundel County | $140,759 | $161,873 | $782,118 |
| Howard County | $140,759 | $161,873 | $782,118 |
| Montgomery County | $199,320 | $232,540 | $1,306,974 |
| Prince George’s County | $199,320 | $232,540 | $1,306,974 |
One wrinkle from the same PDF: the mortgage limit on these state loans is the lesser of the max acquisition cost or the FHA one-family limit, and it can’t go above $832,750. So in Montgomery or Prince George’s, the price ceiling is high but the loan still tops out there.
Household income is the combined income of everyone 18 or older living in the home, including wages, retirement income, near-cash government transfers like food stamps, and investment gains (how MMP counts income). A doctor-certified pregnancy counts as an extra person.
If you’re weighing Montgomery or Prince George’s, our list of the most walkable Maryland suburbs of DC is a good place to start on neighborhoods.
Program terms and limits change, and this article is general education, not financial or legal advice. Confirm current terms with an MMP-approved lender.
Extras that stack, and ones that don’t
Partner Match. Take 1st Time Advantage 6000 or Flex 6000, and help from one or more MMP-approved Partners (employers, homebuilders, community and local government partners) gets matched up to $2,500 (Partner Match). The match is a no-interest deferred state loan, payable when the first mortgage is fully paid off.
It doesn’t work with the 5% Loan. Outside help from employers, builders or nonprofits can be combined with that option, but it won’t be matched (5% Loan fact sheet). The First Responders and Teachers option can’t be combined with other MMP products or Partner Match at all.
Maryland SmartBuy. With at least $1,000 in student loan debt, SmartBuy can use up to 15% of the purchase price, capped at $25,000, to pay that debt off at closing. That portion is a 0% loan forgiven after 5 years if you stay in the home. It has a 720 minimum credit score, requires first-time status unless you buy in a Targeted Area, and you have to use an approved SmartBuy lender. You can pair it with one standard MMP assistance option: $6,000, or 6% if your income is at or below 50% AMI.
Local programs. MMP lists these county and city programs:
- Anne Arundel County Mortgage Assistance Program
- Baltimore City Buy Back the Block
- Howard County SDLP
- Montgomery County MHP and MEDPAL
- Prince George’s County Pathway to Purchase
- City of Laurel First-Time Homebuyer Assistance Program
- Washington County Hagerstown Home Store
Each provider sets its own rules. Check with them directly, and ask your lender how a local program fits your MMP loan.
Homebuyer education and credit
Every MMP purchase borrower has to finish homebuyer education before approval (MMP homebuyer education). Any class approved by HUD, Fannie Mae or Freddie Mac that meets insurer and master servicer requirements counts. The certificate has to be issued within 12 months before settlement, and some online classes charge a registration fee.
MMP strongly encourages taking the class before you sign a contract. I’d go further: do it before you tour. It’s the easiest box to check, and it can’t hold up your closing if it’s already done.
Credit is murkier. MMP requires you to meet its credit score limits, but the 1st Time Advantage and Flex pages don’t publish a number. SmartBuy is the exception at 720. For everything else, ask an MMP-approved lender what your loan needs.
Before you apply
- Confirm you haven’t owned and lived in a home in the past 3 years, or know which exception you’d use.
- Veterans: find your DD-214 and ask about the exemption form.
- Add up income for every adult 18 or older in the household.
- Check the address in the Maryland Mortgage Program Mapper.
- Make sure you won’t own other real property at closing.
- Pull your student loan balances if SmartBuy might fit.
- Book an approved homebuyer education class.
- Ask your employer whether it’s an MMP Partner.
How to apply for the Maryland Mortgage Program
- Take homebuyer education early, ideally before you’re under contract.
- Pick an MMP-approved lender and get pre-qualified. Ask about rates, credit score requirements and which assistance options you fit.
- Confirm Targeted Area status and the income limit for the specific address.
- Choose your product (1st Time Advantage or Flex) and your assistance option with your lender.
- Hire a buyer’s agent and sign a buyer agency agreement so you know exactly what you’re agreeing to.
- Make an offer and close.
Assistance doesn’t cover everything. For transfer and recordation taxes and what cash to close looks like, see our Maryland closing costs guide.
Where the Houwzer Home Buyer Rebate fits
Houwzer is a fully licensed real estate brokerage, and our agents are state-licensed REALTORS® with full MLS access. With the Houwzer Home Buyer Rebate, we give half of the buyer’s agent commission back to you at closing. The amount depends on the sale price and the commission offered. If the seller doesn’t offer a buyer’s agent commission, you pay 1%. Maryland isn’t on the list of states where Houwzer can’t offer the rebate.
Some lenders cap rebates based on your down payment. So before you count on one, ask your MMP lender how a rebate interacts with your assistance and closing-cost limits. You’ll sign a buyer agency agreement before touring, and ours can be canceled any time before you go under contract. Here’s how the Houwzer Home Buyer Rebate works.
Frequently asked questions
How much down payment assistance can I get in Maryland?
Through MMP, it’s a flat $6,000 or a percentage of your first mortgage: 3%, 4% or 5%, or 6% through HomeStart if household income is at or below 50% AMI (1st Time Advantage options). The $6,000 options can add a Partner Match of up to $2,500. Your lender will tell you which ones you qualify for.
Do I have to pay back Maryland Mortgage Program assistance?
Yes. The $6,000 options are 0% second loans with no monthly payment, due when the first mortgage ends through repayment, refinance, transfer or sale (1st Time Advantage terms). The 3%, 4% and 5% loans are also 0% deferred second liens, so ask your lender exactly when yours comes due. The exception is the student debt payoff from SmartBuy, which is forgiven after 5 years if you stay in the home.
Who counts as a first-time home buyer in Maryland?
For MMP, it’s anyone who hasn’t owned a home they lived in as a primary residence in the past 3 years (MMP eligibility). Buyers in Targeted Areas and veterans using their exemption for the first time can get past that rule. Recording tax rules use a different definition.
What credit score do I need for the Maryland Mortgage Program?
MMP requires you to meet its credit score limits, but the 1st Time Advantage and Flex pages don’t publish a number. The only stated minimum is 720 for SmartBuy. Ask an MMP-approved lender what your loan needs.
Can I use MMP if I’ve owned a home before?
Often, yes. Repeat buyers can use Flex anywhere in Maryland if they meet the income limits, and any MMP product in a Targeted Area (for 1st Time Advantage, you’d sell your current home before closing). On Flex and the 5% Loan, you can’t own other real property at closing.
Can I combine a buyer rebate with MMP assistance?
Possibly, but ask your lender first. Some lenders cap buyer rebates based on your down payment, and only your MMP lender can tell you how a rebate interacts with your assistance and closing-cost limits. Get that answer before you write an offer.
