Down Payment Path

Down Payment Assistance Programs in Maryland

Maryland offers a variety of down payment assistance programs to help buyers manage the upfront costs of homeownership. These initiatives are available to a wide range of buyers, including both first-time and repeat purchasers, making homeownership more accessible across the Free State.

Maryland Mortgage Program (MMP) Down Payment Assistance

The Maryland Mortgage Program (MMP) provides financial assistance to help buyers cover down payments and closing costs.

  • Offers up to $6,000 in assistance as a zero-interest deferred loan.
  • Repayment is deferred until the home is sold, refinanced, or the first mortgage is paid off.
  • Available for FHA, VA, USDA, and conventional loans.
  • Income and purchase price limits apply, but they accommodate many buyers.

MMP Flex Loans

The Flex Loans within the Maryland Mortgage Program provide flexible down payment assistance options to suit different needs.

  • Includes assistance of up to 5% of the home’s purchase price.
  • Funds can be structured as either a deferred loan or a forgivable loan, depending on the program option.
  • Open to both first-time and repeat buyers meeting income and credit requirements.

SmartBuy Program

The SmartBuy Program helps buyers with student loan debt while also offering assistance for upfront homebuying costs.

  • Provides up to 15% of the home’s purchase price to pay off student loans, with a maximum of $50,000.
  • Includes an additional $5,000 for down payment and closing costs.
  • Open to buyers meeting income and purchase price limits.

USDA Rural Development Loans

For buyers in rural areas of Maryland, the USDA Rural Development Loan provides affordable financing with no down payment requirement.

  • Available to low- and moderate-income buyers in USDA-eligible areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be combined with state or local assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate program offers valuable tax savings for homebuyers, reducing the long-term cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Can be combined with MMP loans and other down payment assistance programs.
  • Income and purchase price limits apply, but the program is widely accessible.

Local Assistance Programs

Many cities and counties in Maryland provide additional support for homebuyers through down payment and closing cost assistance programs.

  • Programs in areas like Baltimore, Montgomery County, and Prince George’s County offer grants or low-interest loans for upfront costs.
  • Some initiatives provide enhanced benefits for public service workers or buyers purchasing in targeted neighborhoods.
  • Eligibility requirements and funding levels vary by location.

Maryland’s down payment assistance programs are designed to reduce financial barriers to homeownership, making it more attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these programs can help you achieve your dream of owning a home in the Free State.