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Maryland Down Payment Assistance Programs

Programs available to Maryland residents.

Maryland Mortgage Program

(all Maryland Counties)

The Maryland Mortgage Program (MMP) is the Maryland state bond program for first time Maryland home buyers.

MMP offers several different loan program options including INTEREST FREE-ZERO PAYMENT second mortgages that can be used for down payment and closing costs.  MMP offers Conventional, FHA, VA & Rural Housing Loans – All offered loan programs are 30 year fixed rate mortgages.

Minimum down payment requirements for each loan program:  Conventional – 3% down   FHA  3.5% down   VA – 0% down   USDA – 0% down

Down payment assistance available through the following programs, which can be applied to cover down payment & or closing costs for each loan program:

1st Time Advantage – 3% second mortgage

Can be applied to cover closing costs or down payment. Interest free, no monthly payments, repaid at time of sale or refinance.

1st Time Advantage 4% DPA - includes 4% second mortgage ***NEW***

Can be applied to down payment and closing costs

1st Time Advantage 5000

Comes with $5,000 down payment assistance loan. Interest free, no monthly payments, repaid at time of sale or refinance.

1st Time Advantage 5% DPA - includes 5% second mortgage ***NEW***

Can be applied to down payment and closing costs.

House Keys 4 Employees

Up to an additional $2,500 match of employer contribution ($5,000 total).

Smart Keys 4 Employees

An additional $1000 depending on proximity of home to work location.

Other programs:

Maryland Smartbuy

97% Conventional first mortgage accompanied by a second loan that must be used to pay off all student loan debt at settlement. The second loan is equal to 15% of the sales price up to a maximum of $50,000. The second loan is fully forgiven after 5 years.

Montgomery Homeownership V

Up to $25,000 available to buyers who purchase in Montgomery County, Maryland.

Flex Programs (as of 2022)

Borrower is not required to be a first time home buyer, but buyer cannot currently own real estate.
Flex loans/grant are a % of the 1st mortgage

Flex Direct
No down payment assistance
Flex 5000
Comes with $5,000 down payment assistance loan
Flex 3% Loan
Comes with 3% down payment assistance loan
Flex 3% Grant  ***DISCONTINUED AS OF 5/18/22***
Come with 3% grant (no second mortgage)
Flex 4% Grant  – ***DISCONTINUED***
Comes with 4% grant (no second mortgage)

Additional MMP Program Highlights:

  • Perfect for 1st time buyers & those not currently owning real estate in need of down payment and closing cost assistance.
  • Targeted areas – borrowers cannot own real estate at time of purchase, but do not need to be a first time buyer.
  • Non Targeted areas – borrowers cannot have owned a home for 3 years.
  • Lower cost mortgage insurance available on Conventional loans.
  • Maryland Homecredit Program / MCC can also be applied for with MMP to boost annual savings at tax time. $1,500-$2,000/year in savings at tax time.
  • Minimum credit score required for all programs is 640. FHA credit scores from 640-659 require 2 months cash reserves and has a maximum debt to income ratio of 42%.
  • Income & sales price limits & loan limits apply – household income (all those over the age of 18 who will occupy home).
  • Home ownership counseling is required. Before attending a class, please confirm which classes are eligible. List of online classes HERE.
  • Program rates posted daily, which can be located HERE.
  • MAP for sustainable communities, priory funding and target areas can be found HERE.

Montgomery County HOC

(Montgomery County, Maryland only)

The Montgomery County HOC program is offered by the Montgomery County Housing Opportunities Commission in partnership with eligible participating lenders.

This loan program is specifically designed to offer down payment assistance to those purchasing their first home in Montgomery County, Maryland.

  • 3% (of sales price) down payment assistance loan. 0% interest, deferred & forgivable loan at 20% per year.
  • 5 for 5 second mortgage – 5% of sales price up to $10,000. Monthly repayment over 10 years. – borrower must work in Montgomery County
  • Can be applied to Down Payment, Closing Costs, and Pre-Paid Expenses.
  • Discounted PMI pricing lowers the monthly payment.
  • 640 minimum credit score.
  • Maximum of 50% debt/income ratio Conventional. 45% for FHA.
  • First trust loan limit – $510,400
  • Rates are listed daily. See Here.
  • Household size income limits, sales price limit and loan amount limits apply
  • Home ownership counseling is required. List of online classes HERE.

2022 HOC income limits

Gaithersburg, Maryland - Homebuyer Assistance Loan Program

The Gaithersburg Homebuyer Assistance Loan Program (GHALP) provides closing cost and down payment assistance to eligible first-time homebuyers who purchase within the City of Gaithersburg.

An applicant must have lived or worked in the City of Gaithersburg for at least one year prior to date of application.  This does not apply to Priority Populations: K-12 public and private school employees, police officers, fire safety employees or to veterans. An applicant in one of those priority categories can receive assistance without being a City resident or employed within the City limits.

Down payment and closing cost assistance funds come in the form of a 0% deferred second mortgage.  Assistance funds range from $12,000 to $25,000 depending on property location.  Standard zone assistance limit up to $12,000 and Opportunity zone limits up to $25,000.  Assistance loans cannot exceed 10% of the purchase price of the home.

The lookup too HERE can be used to search which zone the home falls within.

House hold income limits apply and home buyer education is required.

GHALP WEBSITE for more info

2022 Gaithersburg income limits

Anne Arundel County Mortgage Assistance Program (MAP)

The Mortgage Assistance Program (MAP) provides deferred loans up to $40,000 for Anne Arundel County, Maryland first time home buyers.  **As of 4/13/22**

These funds can be applied towards down payment and closing costs for eligible applicants.

Program Specifics:

  • Graduates of the ACDS home ownership counseling program can apply for MAP HERE.
  • 1 unit homes & primary residence only.
  • Subject property is required to be inspected by an ACDS Construction Specialist to confirm the home meets condition standards
  • Borrowers minimum contribution is 1% of the purchase price (can include prepaid items and inspection fees)
  • Cannot have owned real estate in previous 3 years (3 years federal tax returns required).
  • Home ownership counseling is required prior to writing a contract and prior to applying for MAP.

Counseling is 4 sessions and normally takes 4 -6 weeks to complete.

Sign up for classes here

  • The assistance loan is a 0% loan (no monthly payments) & it is repayable upon sale of the home, transfer of the property, when the property is no longer a primary residence or 30 years, whichever is sooner.
  • The maximum sales price is $293,000 for existing homes and $364,000 for new construction.
  • Household income limits listed here below as of June 28, 2019:

MAP income limits 2022

For more information about the ACDS Mortgage Assistance Program, visit the official website HERE

Prince Georges County Transfer Taxes

If you’re a first time home buyer and you work as a Law Enforcement or a school teach in Prince Georges County, Maryland, you may be eligible to have your county transfer taxes waived when you purchase a home.

Prince Georges County School Teachers – Apply to have your county transfer taxes waived

Prince Georges County Law Enforcement –Apply to have your county transfer taxes waived

Curious if you qualify?