2025 Maryland First-Time Homebuyer Programs

Written by: Courtney Muller
  |  3 min read

Key Takeaways

  • Maryland offers diverse homebuyer programs to help with mortgages and down payments.

  • The Maryland Mortgage Program (MMP) provides low-interest loans with potential benefits.

  • Down payment assistance can reduce upfront costs by thousands of dollars.

  • Local grants and programs increase affordability in cities like Baltimore and Gaithersburg.

Buying your first home in Maryland in 2025 comes with challenges—from rising home prices to intense market competition. However, several Maryland first-time homebuyer programs offer financial assistance through low-interest mortgage loansdown payment assistance, and city-specific grants. These programs, including the Maryland Mortgage Program (MMP), aim to make homeownership more accessible and affordable for new buyers across the state.

Maryland Housing Market Snapshot (2025)

Metric Value
Median home price (Jan 2025) $408,800
Median down payment (Dec 2024) $67,000
Most affordable counties Allegany, Somerset, Baltimore City, Dorchester, Wicomico

Statewide Maryland First-Time Homebuyer Programs

Maryland Mortgage Program (MMP)

The Maryland Mortgage Program (MMP), administered by the Maryland Department of Housing and Community Development (DHCD), offers fixed-rate home loans, often paired with down payment assistance or targeted eligibility benefits.

1st Time Advantage Direct

  • 30-year fixed-rate mortgage
  • For first-time buyers, veterans, and eligible repeat buyers in targeted areas
Feature Detail
Interest rate Competitive
Credit score Minimum 640
Debt-to-income (DTI) 50% max (conventional), 45% (other loans)
Assets Cannot exceed 20% of purchase price
Down payment assistance Not included
Homebuyer education Required
Explore Low Down Payment Mortgages, low income mortgages, low income payments

MMP Flex Direct

Open to any homebuyer who does not own residential property at the time of purchase. Similar structure to 1st Time Advantage Direct but without a first-time buyer requirement.

Maryland Down Payment Assistance Programs (DPA)

Program Description Max Assistance
SmartBuy 3.0 Pays off up to $20K in student loans and offers additional DPA Up to $20,000
HomeAbility For households with disabilities; zero-interest second mortgage Up to $45,000
1st Time Advantage 6000 / Flex 5000 Deferred second mortgage $5,000–$6,000
Partner Match Employer/local org match Up to $2,500
1st Time Advantage 3%, 4%, 5% Percentage of first mortgage for DPA 3%–5%
HomeStart For buyers under 50% AMI 6% of purchase price

City and County-Specific Programs

Montgomery Homeownership Program

  • Up to $25,000 deferred DPA
  • Must use MMP loan and buy in Montgomery County

Montgomery County Employee DPA

  • $25,000 zero-interest loan for county employees
  • Requires 1% personal contribution

Baltimore City Employee Program

  • $5,000 forgivable loan for full-time city employees
  • Must attend Live Baltimore Trolley Tour
click here to check your mortgage eligibility and get pre approved for a home loan

Buying Into Baltimore

  • $5,000 grant via lottery
  • Attend Live Baltimore event + counseling required

Howard County SDLP

  • $4,300 to $40,000 assistance
  • Interest: 2% below primary mortgage rate
  • Education + $1,000 buyer contribution required

Gaithersburg Homebuyer Assistance (GHALP)

  • Up to $25,000 zero-interest deferred loan
  • First-time buyers only, credit score ≥ 620, income within 100%–120% AMI

Other First-Time Homebuyer Loan Options

Loan Type Benefits
FHA Loans 3.5% down, credit scores as low as 580
VA Loans No down payment, low rates for veterans
USDA Loans No down payment in eligible rural areas
HomeReady / Home Possible 3% down, flexible income limits
Good Neighbor Next Door Discounts for public service employees

How to Get Started

  1. Evaluate Maryland’s housing market. Research affordable counties and price trends.
  2. Find an MMP-approved lender. Compare interest rates, customer reviews, and fees.
  3. Explore all program options. Consider your eligibility for DPA, income limits, and property location.
  4. Secure homeowners insurance. Protect your investment with reliable coverage.

 

FAQs: Maryland Down Payment Assistance

The MMP is a state-run initiative offering affordable loans and assistance to eligible homebuyers across Maryland.
Yes. Programs like SmartBuy, Flex 3%, and Advantage 6000 offer deferred or forgivable DPA options.
Some programs require first-time buyer status, but others—like Flex Direct—do not.
Most MMP programs require a minimum score of 640, though some DPA options may require higher.
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