Dreaming of owning your first home in Maryland? With rising home prices, starting the journey can feel overwhelming. Fortunately, Maryland offers numerous first-time homebuyer programs designed to ease common hurdles like down payments, closing costs, and even student loan debt.
This guide clearly explains key Maryland homebuyer programs, eligibility criteria, benefits, and the application process—preparing you to confidently take that exciting first step toward homeownership.
Maryland Housing Market Snapshot
Maryland remains a desirable location thanks to its proximity to major cities like Washington D.C., Philadelphia, and New York. As of April 2025, the median home price reached $449,400—up 4.5% from last year. For first-time buyers, programs such as the Maryland Mortgage Program (MMP) can significantly reduce financial barriers.
Key First-Time Homebuyer Programs in Maryland
1. Maryland Mortgage Program (MMP)
The Maryland Mortgage Program provides 30-year fixed-rate mortgages designed specifically for first-time buyers, offering various forms of assistance:
MMP 1st Time Advantage:
Offers the lowest available fixed interest rates.
MMP Flex Loans:
Flexible options including Flex Direct loans (lowest rates without assistance) and loans with down payment assistance.
SmartBuy 3.0:
Assists with paying off student debt—up to $20,000 or 15% of the home’s price—and includes down payment support.
Eligibility for MMP Programs
To qualify, you’ll need to:
- Be a first-time buyer (or have not owned a home in the past three years).
- Have a minimum credit score of 640 (720 for SmartBuy).
- Meet specific income and purchase price limits based on location and household size.
- Maintain a debt-to-income ratio below 50% for conventional loans or 45% for other loans.
- Complete an approved homebuyer education course.
Tip: Understanding debt-to-income ratio can help you get mortgage-ready.
Benefits of MMP Programs
Participants can benefit from:
- Down payment assistance from $5,000 up to 6% of the loan amount.
- Deferred, interest-free loans typically repaid only when selling or refinancing.
- Up to $20,000 towards student loan repayment with SmartBuy.
2. Local Assistance Programs
In addition to statewide initiatives, many Maryland counties and cities offer specific assistance programs:
Prince George’s County Pathway to Purchase:
Offers up to $25,000 in down payment assistance, forgiven after 10 years.
Baltimore City First-Time Homebuyers Incentive Program:
Provides $10,000 for buyers earning up to 80% of the area’s median income, with an additional $5,000 available to qualifying buyers.
City of Laurel First-Time Homebuyer Assistance:
Grants $5,000 towards down payments and closing costs.
Helpful Resource: Home buying tips in Maryland
How to Apply for Maryland Homebuyer Assistance
Follow these straightforward steps:
- Choose an Approved Lender: Work with a state-approved lender like Federal Hill Mortgage.
- Gather Necessary Documents: Prepare proof of income, assets, and credit reports.
- Complete Homebuyer Education: Enroll in and finish a certified homebuyer education course.
- Submit Your Application: Your lender will submit your application to the relevant program.
Since some local programs have limited funding, apply early or inquire about waiting lists.
Why Choose Federal Hill Mortgage?
With over 20 years of experience, Federal Hill Mortgage has guided countless Maryland first-time buyers through their homeownership journeys. Our personalized service, diverse loan options, and streamlined process make buying your first home stress-free and enjoyable.
Learn About Us: Meet Tammy Saul and the Federal Hill Mortgage team
Frequently Asked Questions
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Can I combine Maryland homebuyer programs?
Generally, yes. State programs can often be combined with local ones, though rules may vary.
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Are there income limits for Maryland homebuyer programs?
Yes, income limits depend on your county, household size, and the specific program. Federal Hill Mortgage can assist you in understanding your eligibility.
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What qualifies as a first-time homebuyer in Maryland?
Typically, you’re considered a first-time buyer if you haven’t owned a home in the past three years.
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How soon should I apply for homebuyer assistance?
Apply as early as possible—many programs operate on a first-come, first-served basis.
Let’s make your homeownership dreams a reality—together.
Take the First Step Toward Your New Home
Curious about which Maryland first-time homebuyer programs you’re eligible for? Federal Hill Mortgage is here to support you every step of the way.
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