Key Takeaways
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Maryland offers diverse homebuyer programs to help with mortgages and down payments.
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The Maryland Mortgage Program (MMP) provides low-interest loans with potential benefits.
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Down payment assistance can reduce upfront costs by thousands of dollars.
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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 loans, down 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 |

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

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
- Evaluate Maryland’s housing market. Research affordable counties and price trends.
- Find an MMP-approved lender. Compare interest rates, customer reviews, and fees.
- Explore all program options. Consider your eligibility for DPA, income limits, and property location.
- Secure homeowners insurance. Protect your investment with reliable coverage.
FAQs: Maryland Down Payment Assistance
No SSN required. Zero impact to credit. Your Information is never sold.