Maryland First Time Home Buyer Guide 2026
Maryland Mortgage Program loans, down payment assistance up to 6%, income & purchase price limits by county, and a step-by-step path to buying your first home in Maryland.
Who Qualifies as a First-Time Home Buyer in Maryland?
For most Maryland Mortgage Program (MMP) products, a “first-time home buyer” is defined as anyone who has not owned and occupied a principal residence in the past three years. Buyers purchasing in a designated “Targeted Area” of the state are exempt from the first-time buyer requirement altogether under MMP rules.
Veterans exception: Eligible veterans and active duty service members can use MMP’s first-time buyer programs even if they’ve owned a home before, under a federal exception written into MMP eligibility. Confirm your status with an MMP-approved lender regardless of prior homeownership.
Maryland Mortgage Program (MMP) Loan Programs
The Maryland Mortgage Program, administered by the Maryland Department of Housing and Community Development (DHCD), offers below-market mortgage rates on 30-year fixed loans, paired with down payment assistance, exclusively through approved participating lenders. MMP loans generally require:
- Completion of a HUD-approved homebuyer education course
- Minimum borrower contribution (varies by loan type)
- Owner-occupied primary residence only
- Must finance through an MMP-approved participating lender
| Program | Who It’s For | Min Credit Score | Loan Type | Key Feature |
|---|---|---|---|---|
| 1st Time Advantage 6000 | First-time buyers only | ~640–660 | FHA, VA, USDA, or Conventional | Below-market rate + flat $6,000 deferred DPA |
| 1st Time Advantage Flex | First-time buyers only | ~640–660 | FHA, VA, USDA, or Conventional | DPA sized as 3–5% of first mortgage |
| Flex 3%/4%/5%/6% | First-time & repeat buyers | ~640 | FHA, VA, USDA, or Conventional | DPA as a percentage of first mortgage; county income/price limits apply |
| HomeStart | Households ≤50% Area Median Income | ~640 | FHA, VA, USDA, or Conventional | DPA up to 6% for the most income-constrained buyers |
Layering with SmartBuy. Maryland also runs a separate SmartBuy program that helps buyers with qualifying student loan debt pay it off at closing in exchange for taking on an MMP first mortgage — a feature that’s distinctive to Maryland among state HFAs. Ask an MMP lender whether SmartBuy applies to your situation.
MMP Income & Purchase Price Limits
MMP income and purchase price limits vary by county and household size, and are generally higher in the Washington D.C.-metro counties (Montgomery, Prince George’s, Frederick, Charles) than in the rest of the state, reflecting the region’s higher area median income. Limits are set and updated by DHCD.
Verify exact figures with a lender. Because MMP income and purchase-price limits are county-specific, household-size-specific, and updated periodically by DHCD, we’re intentionally not publishing a static county-by-county table here — a stale number is worse than no number. Get current limits directly at dhcd.maryland.gov or from an MMP-approved participating lender before assuming you qualify or don’t.
Down Payment Assistance Options in Maryland
MMP Down Payment Assistance
MMP’s flagship 1st Time Advantage 6000 loan pairs a below-market first mortgage with a $6,000 zero-interest, deferred-payment second loan — no monthly payment, repaid only when the home is sold, refinanced, or the first mortgage is paid off. The Flex products instead size assistance as a percentage (3–6%) of the first mortgage loan amount, which can mean more assistance on higher-priced homes common in the DC-metro counties.
HomeStart, for households at or below 50% of area median income, offers DPA up to 6% of the first mortgage — the most generous MMP assistance tier, targeted at the most income-constrained buyers.
Partner Match
Maryland’s Partner Match program provides matched down payment assistance up to $2,500 when a buyer works with a participating employer, nonprofit, or local jurisdiction partner that also contributes toward the purchase — layering on top of standard MMP DPA.
County and Local DPA Programs
Several Maryland counties and Baltimore City run their own first-time buyer down payment and closing-cost assistance programs on top of state MMP assistance (for example, Baltimore City’s Buying Into Baltimore and various county homeownership incentive programs). Availability, amounts, and funding change frequently — check with your county or city government and your MMP lender for current local programs.
Stack multiple programs. Many Maryland buyers combine MMP DPA with a local county or city program and/or Partner Match for maximum assistance. Verify combined loan-to-value limits and program compatibility with your lender before assuming all programs can be layered together.
Step-by-Step: Buying Your First Home in Maryland
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | ~640+ typical for most MMP programs |
| 2 | Calculate your DTI | Standard program DTI guidelines apply; confirm with lender |
| 3 | Complete homebuyer education | Required for MMP loans before closing |
| 4 | Find an MMP participating lender | MMP loans only available through approved lenders |
| 5 | Get pre-approved | Ask lender to check both MMP and standard loan options |
| 6 | Identify DPA programs you qualify for | County/city programs and Partner Match may stack with MMP DPA |
| 7 | Make an offer with pre-approval letter | Competitive DC-metro and Baltimore-metro markets expect full pre-approval |
| 8 | Open escrow and complete inspections | Don’t waive inspection contingencies |
| 9 | Final loan approval and closing disclosure | Review transfer/recordation tax line items carefully |
| 10 | Close and fund | Bring certified funds for closing costs minus DPA received |
