Maryland created a new homebuyer program specifically for eligible first responders and teachers. The First Homes for First Responders and Teachers initiative combines a reduced first-mortgage interest rate with down payment and closing-cost assistance through the Maryland Mortgage Program.
The program became available on September 4, 2026. However, only eligible first-time homebuyers purchasing a primary residence in Maryland may use it.
What Does the First Homes Program Offer?
The program provides two primary benefits:
- A first-mortgage interest rate that is 0.50 percentage point lower than the Maryland Mortgage Program First Time Advantage 5% Loan rate.
- Down payment and closing-cost assistance equal to 5% of the total first-mortgage loan amount.
The Maryland Mortgage Program publishes a specially designated interest rate each business day. Therefore, buyers should confirm current rates and program availability.
How Does the 5% Assistance Loan Work?
The assistance amount is exactly 5% of the total first-mortgage loan amount. No higher or lower assistance percentage is available through this program. For example, buyers may use the funds for:
- The down payment
- Eligible closing costs
- A combination of down payment and closing costs
The program structures the assistance as a second lien with these terms:
- 0% interest
- No monthly payments
- A 30-year deferred term
- Repayment when the first mortgage ends, including through a sale or refinance
Because the assistance must eventually be repaid, it is a deferred loan rather than a grant.
Who Qualifies as a First Responder?
At least one borrower must meet the program’s occupational requirements and be actively employed in Maryland. Eligible first responders may include:
- Certified emergency medical technicians
- Certified paramedics
- Firefighters
- Qualifying volunteer firefighters
- Police officers
- Rescue-squad members
- Sworn members of the Office of the State Fire Marshal
- 9-1-1 specialists
Firefighters, EMTs and Paramedics
Eligible borrowers generally need full-time employment with a fire department, hospital or ambulance service. Their regular duties must include fire suppression or prevention, emergency medical response, or both. In addition, the lender may require certification when the employment verification does not clearly document the borrower’s role.
Volunteer Firefighters
A volunteer firefighter may qualify by providing documentation from the local municipality showing volunteer status for at least the most recent or current 12 months.
Police Officers
The program limits eligibility to commissioned law-enforcement officers who actively work for a federal, state, county, municipal or township government, or for a public or private college or university.
Which Teachers Are Eligible?
Eligible teachers must work full time for an accredited or state-recognized public, private or vocational school. The borrower must be a state-certified classroom teacher or school counselor serving grades pre-K through 12.
Likewise, the lender may require an MSDE teaching license if the employment verification does not clearly establish eligibility. The lender may also request school-accreditation documentation when necessary.
Must You Already Work in Maryland?
At least one borrower must be actively employed in Maryland as an eligible first responder or teacher. Applicants moving from employment outside Maryland may also qualify if they have a signed, non-contingent employment contract or offer letter from an eligible Maryland employer.
Is the Program Limited to First-Time Homebuyers?
Yes. The First Homes program is available only to first-time homebuyers in Maryland. Depending on applicable guidelines, the program may treat someone as a first-time homebuyer if that buyer has not owned a principal residence during the previous three years. Because other exceptions or geographic provisions may apply, buyers should confirm eligibility before making an offer.
Is Homebuyer Education Required?
Yes. Maryland Mortgage Program borrowers must complete an approved homebuyer-education course. Depending on the jurisdiction and program rules, approved providers may offer the class online or in person. In addition, timing requirements may vary.
Can the Assistance Be Combined With Other Programs?
The First Homes assistance cannot be combined with matching funds from the Maryland Mortgage Program DPA Partner Match program. However, buyers may combine it with eligible outside assistance from sources such as:
- Employers
- Home builders
- Developers
- Local jurisdictions
- Other approved sources
Any combined assistance must comply with the applicable mortgage-agency and loan-servicer guidelines. Maryland CDA assistance also cannot be used with conventional financing to purchase a DHCD-owned REO property.
What Other Mortgage Requirements Apply?
Meeting the occupational requirements does not automatically approve the mortgage. The borrower must also satisfy the requirements of the selected first-mortgage program—such as conventional, FHA, VA or USDA financing—and all Maryland Mortgage Program rules.
Qualification may include a review of:
- Income and employment
- Credit history
- Debt-to-income ratio
- Assets and required funds
- Property eligibility
- Occupancy
- Sales-price and income limits
- Mortgage insurance, when applicable
- Automated and manual underwriting requirements
Finally, the lender requires a standard written Verification of Employment with detailed income information or an approved income-and-employment verification report.
Is This Program the Best Option for Every Eligible Buyer?
Not necessarily. Instead, buyers should compare:
- The interest rate
- The monthly mortgage payment
- Mortgage insurance
- Cash required at closing
- The future repayment of the assistance loan
- Other available grants or assistance
- How long the buyer expects to keep the home and mortgage
The option offering the largest amount of assistance is not always the lowest-cost choice over time.
Review Your Eligibility Before Making an Offer
First Homes for First Responders and Teachers creates a valuable new path to homeownership for eligible Maryland professionals. Because rates, funding and guidelines can change, buyers should confirm current eligibility and availability before entering into a purchase contract.
The Chris Jordan Mortgage Team can review your employment, first-time-homebuyer status, estimated mortgage payment and available assistance options before you begin shopping for a home.
Call (240) 670-5090 or email CJMT@mainstreethl.com to discuss the program.
Official source: Maryland DHCD announcement of First Homes for First Responders and Teachers
Loan-program guidelines, interest rates and availability are subject to change. This information is not a commitment to lend. All financing is subject to application, documentation, property eligibility and underwriting approval. Not all applicants will qualify. The Maryland Mortgage Program is not affiliated with or endorsed by Main Street Home Loans or NFM, Inc.
