Home LoansMortgage

Maryland First-Time Homebuyer Programs

If you’re looking for help buying a home in Maryland, consider one of the eight programs the state offers residents. In January 2019, we reviewed the most current information available to first-time buyers in Maryland. See the sum-up, as well as our quick guide, below:

Maryland first-time homebuyer programs

The Maryland Mortgage Program is part of the state’s Department of Housing and Community Development, and it offers a variety of programs to help state residents become homeowners and cut costs.

Two 30-year, fixed-interest mortgages are geared specifically to first-time homeowners: the MMP 1st Time Advantage with 3% Assistance loan and the MMP 1st Time Advantage. Other programs offer loans and grants that help with down payments and closing costs, while a tax credit program can help eligible buyers receive up to a $2,000 break on their federal income taxes.

Buyers who carry student debt can also benefit from one of Maryland’s assistance programs. It offers homebuyers assistance with financing and closing costs, while also letting them pay off student debt that can equal up to 15% of a home’s purchase price.

To learn which Maryland assistance program might work best for you, you’ll first need to meet with an approved Maryland Mortgage Program lender. Click here for a lender list.

Eligibility for Maryland assistance

To be eligible for homebuying help in Maryland, your total household income must fall within certain limits, depending on factors such as your city, county and household size. Limits range from $92,500 up to $154,420. Click here for a table for all Maryland counties and limits.

You will also need to occupy your home as a primary residence after purchase, not own other residential property and not have liquid assets that are more than 20% of your home’s purchase price.

MMP 1st Time Advantage with 3% Assistance

Features

  • Offers a 30-year, fixed-interest-rate mortgage with a deferred, no-interest second loan
  • Second loan is equal to 3% of the first mortgage
  • Second loans can be used for down payment or closing costs
  • No payment due on the 3% loan until the first mortgage is paid off, refinanced or transferred
  • Remaining funds available after fulfillment of closing costs or down payment can be applied to principal on second loan

Eligibility

  • Applicants must not have owned a residential property for three years or more.
  • Standard Maryland Mortgage Program eligibility applies.

Maryland residents can apply for an MMP 1st Time Advantage with 3% Assistance loan through a network of 80 statewide authorized banks and mortgage companies. Click here for a list of lenders and here to see if this loan might be right for you.

MMP 1st Time Advantage loan

Features

  • Offers the lowest 30-year, fixed-rate mortgage available for a Maryland Mortgage Program loan
  • Special assistance grants can be offered as add-ons

Eligibility

  • Applicants must not have owned a residential property for three years or more.
  • Standard Maryland Mortgage Program eligibility applies.

Maryland offers a network of authorized banks and mortgage companies that can help residents apply for an MMP 1st Time Advantage loan. Click here for a list of lenders and here to see if this loan is right for you.

Maryland Mortgage Loan Assist

Features

  • Offers up to $5,000 in down payment or closing cost assistance through a no-interest, deferred payment second loan (Maryland Mortgage Premier)
  • Low, fixed interest rates
  • Repayment on the second loan can begin after the loan has expired
  • Can be combined with the Partner Match program (see below) for more financial support

Eligibility

  • Standard Maryland Mortgage Program eligibility applies.

Residents should talk to a state-approved mortgage lender to see if they qualify for the Loan Assist program. To learn more about this program, go here.

Maryland Mortgage Grant Assist

Features

  • Provides 4% of the value of a first mortgage as a non-repayable grant for closing costs or down payment
  • Offers grants of $1,500 or $2,500, depending on income, for down payment assistance or closing costs for a Freddie Mac Advantage conventional mortgage
  • Some grants can’t be combined with other MMP assistance programs or Partner Match

Eligibility

  • Standard Maryland Mortgage Program eligibility applies.

Go here to learn more about the Maryland Mortgage Grant Assist program.

Maryland Mortgage Rate Assist

Features

  • Provides the most affordable home loan available through the Maryland Mortgage Program by offering the lowest interest rate on a 30-year, fixed-rate home loan (Maryland Preferred Rate)
  • Can be combined with the Maryland HomeCredit tax credit program

Eligibility

  • Standard Maryland Mortgage Program eligibility applies.
  • This program can’t be combined with other Maryland Mortgage Program down payment or closing cost assistance benefits.

For more information on this mortgage assistance program, check this website.

Partner Match

Features

  • Offers grant, loan, education and other assistance through employers, community organizations, real estate developers, local governments and other groups
  • With Maryland Mortgage Premier loans, partner support is matched (up to $2,500) with more down payment support

Eligibility

  • Maryland Mortgage Program eligibility rules apply.

To learn more about Partner Match, go here.

Maryland HomeCredit

Features

  • Provides a federal tax credit (up to $2,000) equal to 25% of annual mortgage interest payments for the life of the loan
  • Can be claimed annually
  • Homeowners can apply for the tax credit program while also applying for a loan

Eligibility

  • Maryland Mortgage Program eligibility rules apply.

Find more about this tax credit program here.

Maryland SmartBuy and SmartBuy 2.0

Features

  • Helps buyers acquire a home and pay off student debt
  • Provides up to 15% of a home’s purchase price for student debt payoff
  • SmartBuy requires buying a move-in-ready home owned by the state of Maryland
  • SmartBuy 2.0 can be used to buy any Maryland Mortgage Program-eligible home
  • Student debt must be paid off in full at time of home purchase

Eligibility

  • Buyers must have a minimum $1,000 in student debt.
  • All Maryland Mortgage Program eligibility rules apply.

Check this website for more information about SmartBuy options, and click here for a list of SmartBuy properties.

National first-time homebuyer programs

If one of Maryland’s homebuyer assistance programs isn’t right for you, consider one of the nationwide programs available for first-time homebuyers. If you are buying in a rural area, the U.S. Department of Agriculture offers a guaranteed loan through its Rural Development program. Habitat for Humanity, a nonprofit group, can also help lower-income families secure their first home.

To learn more about national programs available to first-time homebuyers, click here for LendingTree’s comprehensive list of resources.

 

Today's Mortgage Rates

  • 2.715%
  • 2.465%
  • 2.934%
Calculate Payment
Advertising Disclosures Terms & Conditions apply. NMLS#1136