Summary
Explore Maryland down payment assistance programs available in 2026, including Maryland Mortgage Program options and local assistance. Learn how much help may be available and what could reduce your cash needed to buy a home.
One of the biggest misconceptions I hear from homebuyers considering Maryland down payment assistance is that they still need a large amount of cash saved before they can purchase a home.
That isn’t always the case.
Maryland offers several down payment and closing cost assistance options, and some counties and municipalities offer additional programs of their own. Depending on your income, location, loan type and other qualifications, assistance may significantly reduce the amount of cash you need at closing.
The key is figuring out which programs you actually qualify for and which financing structure makes the most sense for you.
Maryland Mortgage Program Down Payment Assistance
The Maryland Mortgage Program (MMP) offers several financing options through approved lenders.
For eligible first-time homebuyers, current 1st Time Advantage options include:
- 1st Time Advantage 6000 – Provides a $6,000 loan toward down payment and closing costs.
- 1st Time Advantage 3% – Provides down payment assistance equal to 3% of the first mortgage.
- 1st Time Advantage 4% – Provides assistance equal to 4% of the first mortgage.
- 1st Time Advantage 5% – Provides assistance equal to 5% of the first mortgage.
- HomeStart – For qualifying borrowers at or below 50% of Area Median Income (AMI), assistance may equal 6% of the first mortgage.
MMP also offers Flex loan options that may be available to both first-time and repeat homebuyers.
The assistance associated with many of these programs is structured as a 0% deferred second loan, meaning monthly payments on the assistance generally aren’t required while the first mortgage remains outstanding. The specific repayment requirements depend on the program selected.
Because program availability, interest rates and eligibility requirements can change, buyers should review the current options before choosing a loan solely based on the advertised amount of assistance.
You May Qualify for More Than One Source of Assistance
First Homes for First Responders and Teachers
Maryland’s First Homes for First Responders and Teachers program helps eligible first-time homebuyers who work as teachers or qualifying first responders. It offers a mortgage rate 0.50% below the Maryland Mortgage Program’s First Time Advantage 5% Loan product and includes 5% down payment and closing-cost assistance.
The assistance is provided as a 0% interest, 30-year deferred second mortgage that generally becomes repayable when the first mortgage ends. This program’s assistance cannot be combined with the MMP Partner Match program.
Read the full First Homes for First Responders and Teachers eligibility and program details.
This is where Maryland homebuyer financing can become particularly interesting.
In addition to statewide MMP programs, counties, cities, employers, builders and community organizations may offer their own assistance.
Maryland currently lists local homebuyer assistance programs in areas including:
- Anne Arundel County
- Baltimore City
- Howard County
- Montgomery County
- Prince George’s County
- Washington County
Some programs may also be combined or layered with other eligible assistance.
For example, borrowers using certain $6,000 MMP assistance products may qualify for Partner Match, through which eligible assistance from an approved MMP partner can receive additional matching funds of up to $2,500.
This is one reason I recommend looking at the buyer’s entire situation rather than simply asking, “Which down payment assistance program has the biggest number?”
The program offering the most assistance isn’t necessarily the program that produces the best overall mortgage.
How Much Money Could You Need With Maryland Down Payment Assistance?
There isn’t one answer.
Your required cash can depend on:
- Purchase price
- Loan program
- Down payment requirement
- Closing costs
- Seller-paid closing costs
- Available state or local assistance
- Income and household size
- Property location
- Credit profile
- Available assets
In some transactions, the combination of a low-down-payment mortgage, seller assistance and an eligible down payment assistance program can substantially reduce the buyer’s out-of-pocket requirement.
That’s why I encourage buyers not to assume they can’t afford to purchase simply because they haven’t saved 10% or 20% for a down payment.
You may need considerably less than you think.
Do You Have to Be a First-Time Homebuyer?
Not always.
Some Maryland programs are specifically designed for first-time buyers, while certain MMP Flex options can be available to repeat as well as first-time homebuyers.
Even the definition of “first-time homebuyer” can surprise people. Depending on the applicable program, someone who owned a home years ago may still potentially meet the first-time-buyer requirement, and certain exceptions can also apply.
The best approach is to determine eligibility based on your individual circumstances rather than ruling yourself out.
Income Limits and Property Location Matter
Most assistance programs have eligibility requirements.
For Maryland Mortgage Program loans, household income limits vary based on factors including property location and household size. Some programs have additional requirements of their own.
Property location can be especially important because a buyer may potentially qualify for a state program, a county or municipal program, or a combination of available resources.
Two buyers with similar income and credit profiles purchasing homes in different Maryland counties could therefore have very different assistance options.
Don’t Choose a Mortgage Based Only on the Assistance Amount
This is extremely important.
Down payment assistance can be valuable, but more assistance doesn’t automatically mean a better financial outcome.
Different options can have different:
- Interest rates
- Mortgage insurance costs
- Repayment provisions
- Income restrictions
- Eligibility requirements
- Upfront cash requirements
I like to compare the available options side-by-side so the buyer understands both what they’re receiving today and what the financing will cost over time.
Sometimes maximizing assistance makes sense.
Sometimes bringing a little more money to closing and obtaining different financing produces the better long-term result.
The numbers should determine the answer.
Thinking About Buying a Home in Maryland?
I’ve spent more than two decades helping homebuyers throughout Maryland, Washington, D.C. and Virginia navigate mortgage financing, including state and local first-time homebuyer and down payment assistance programs.
If you’re considering purchasing a home in Maryland—even if you’re several months away—I can review your situation and help determine which programs may be available to you and approximately how much cash you should plan to have available.
You don’t need to figure out the programs yourself.
Contact the CJ Mortgage Team at 240-670-5090 or CJMT@mainstreethl.com to discuss your options.
