What down payment assistance is available in Prince George’s County?
Three county programs, launched July 1, 2026
Prince George’s County restructured its homebuyer assistance for the fiscal year beginning July 1, 2026. The Department of Housing and Community Development now offers three programs:
- Pathway to Purchase (P2P) — up to $50,000, the county’s flagship first-time buyer program, at or below 80% AMI.
- Homeownership Equity Program (HEP) — up to $30,000, up to 120% AMI, targeted inside the Capital Beltway.
- Critical Workforce Housing Assistance Program (CWHAP) — up to $50,000 or 25% of the purchase price, for named essential workers, up to 120% AMI.
All three are zero-interest deferred second mortgages with forgiveness schedules. The statewide Maryland Mortgage Program is available in addition.
You cannot apply directly
The County states it plainly: potential homebuyers must use an approved lender to apply for any of the three programs. Homebuyers cannot apply for the programs directly.
Your choice of lender is therefore the first real decision you make in Prince George’s County, not an afterthought once you have found a house.
The three programs compared
| Program | Assistance | Income limit | Who qualifies | Forgiveness | Geographic area |
|---|---|---|---|---|---|
| Pathway to Purchase | Up to $50,000 | Up to 80% AMI | First-time homebuyers | None in years 1–5, then 10% per year for 10 years; fully forgiven at 15 years | Countywide |
| Homeownership Equity Program | Up to $30,000 | Up to 120% AMI | First-time buyers, county residents, public-sector workers, former renters in designated areas, households with multigenerational caregivers | 20% per year for 5 years; fully forgiven at 5 years | Inside the I-495 Capital Beltway |
| Critical Workforce Housing | Up to $50,000 or 25% of purchase price, whichever is less | Up to 120% AMI | Named essential workers who are first-time buyers | 10% per year for 10 years; fully forgiven at 10 years | Countywide |
Pathway to Purchase
P2P is the county’s flagship first-time homebuyer program, administered by DHCD. It provides up to $50,000 in down payment and closing cost assistance as a zero-interest deferred loan with no monthly payments.
Eligibility centers on not having owned a home within the past three years and planning to occupy the property as your primary residence. Assistance may be used toward down payment and closing costs for eligible homes throughout the county.
The forgiveness schedule has a long runway
P2P forgiveness is not linear from day one. There is no forgiveness in years one through five. Forgiveness then accrues at 10% per year for the following ten years, and the loan is fully forgiven once you have occupied the home for fifteen years. The Maryland Mortgage Program’s own Pathway to Purchase page describes the balance decreasing 10% per year with the lien released after ten years, so confirm the schedule that applies to your award with the county before relying on either version.
Repayment may be required if the home is sold, transferred, refinanced or ceases to be your primary residence before the forgiveness period completes. Selling in year four means the entire balance is still owed.
This is a long commitment, and it deserves an honest conversation about how long you actually expect to stay before you accept $50,000 on these terms.
The county reports that in Fiscal Year 2026, DHCD awarded more than $1.2 million in assistance to 33 homebuyers — useful context for scale. This is a real program with real throughput, but it is not unlimited, and applications compete for finite funds.
P2P requires an 8-hour homebuyer education course and application through an approved certified lender.
Homeownership Equity Program
HEP is aimed at moderate-income households, with a particular focus on communities inside the Capital Beltway. It is funded through the county’s Housing Investment Trust Fund.
| Feature | Terms |
|---|---|
| Maximum assistance | Up to $30,000 per buyer |
| Structure | Zero percent interest deferred payment second mortgage |
| Forgiveness | 20% per year for 5 years; fully forgiven if owner-occupied for the five-year period |
| Income limit | Up to 120% of area median income |
| Your own money | Minimum $1,000 buyer contribution |
| Homebuyer education | 8-hour course required |
| Eligible properties | Single-family homes, townhomes or condominiums inside the I-495 Capital Beltway |
| Purchase price limit | None |
| Occupancy | Must remain owner-occupied for the forgiveness period |
Eligible groups include first-time homebuyers, county residents, county residents who are public-sector workers, county residents who were former renters in designated ZIP codes or neighborhoods within the Beltway, and households with multigenerational caregivers.
Two features stand out. There is no purchase price limit, which is unusual. And the five-year forgiveness is much faster than P2P’s fifteen — so a buyer who qualifies for both, and who does not expect to stay fifteen years, may be better served by the smaller award.
Critical Workforce Housing Assistance Program
CWHAP helps essential workers buy in the communities they serve, also funded through the Housing Investment Trust Fund.
Assistance is up to $50,000 or 25% of the home’s purchase price, whichever is less — so on a $160,000 home the cap is $40,000, not $50,000.
Who counts as critical workforce
- Teachers employed full-time by Prince George’s County Public Schools
- Nurses employed full-time in a medical office or hospital located in Prince George’s County
- Firefighters, emergency medical technicians, correctional officers, police officers, public safety dispatchers, or deputy sheriffs employed full-time by a public safety agency of Prince George’s County Government
The list is specific. A nurse working in the District or a teacher in a neighbouring county’s system does not qualify simply by living in Prince George’s County — the employment itself must be in the county as described.
CWHAP forgiveness runs at 10% per year for ten years, fully forgiven if the owner occupies the home for the ten-year period. It requires first-time homebuyer status, income up to 120% AMI, and the 8-hour homebuyer education course. No buyer contribution is stated.
City of Laurel
The City of Laurel operates its own homebuyer assistance through its Department of Economic and Community Development, for purchases within Laurel city limits. It is described as a grant toward down payment or closing costs, issued after closing, with eligibility extending to buyers who have not purchased a home in the prior five years.
The Maryland Mortgage Program lists the City of Laurel First-Time Homebuyer Assistance Program among local down payment assistance partners.
Confirm Laurel’s current terms directly
Laurel’s program is modest in scale relative to the county programs and its annual funding supports a limited number of buyers. We are not publishing a specific grant amount or budget figure here because we could not confirm current-year terms from the City’s own materials with the confidence we apply to the county programs.
Contact the City of Laurel Department of Economic and Community Development directly for the current amount, eligibility and application process.
Work out which Prince George’s County program fits your plans
Forgiveness runs over five, ten or fifteen years depending on the program. Matching that to how long you expect to stay matters as much as the amount.
This is not a commitment to lend. All loans subject to credit approval.
The statewide Maryland Mortgage Program
Prince George’s County buyers also have access to the Maryland Mortgage Program, the state’s homeownership loan program administered by the Department of Housing and Community Development. MMP pairs a below-market 30-year fixed first mortgage with its own down payment assistance options, available in every Maryland county.
Encouragingly, the County addresses the relationship directly. For all three of its programs, DHCD states that eligible participants may be able to leverage other homeownership resources, including assistance available through the Maryland Mortgage Program.
“May be able to” is doing real work in that sentence
That is a genuine signal that layering is contemplated, and it is more than most jurisdictions say. It is not a guarantee that a particular combination will be approved on your file.
Whether county assistance, state assistance and your first mortgage can all be combined depends on the requirements of each program and on what the first mortgage permits. Your approved lender confirms the stack — and since you must apply through a lender anyway, ask the question at the first meeting.
How local assistance works with your mortgage
| Loan type | How it interacts with local assistance |
|---|---|
| FHA | Commonly paired with county assistance because of its lower down payment and flexible credit standards. |
| VA | Qualified veterans can already finance without a down payment, so assistance is typically directed at closing costs. Secondary financing follows VA rules and lender overlays. |
| USDA | USDA is limited to eligible rural areas. Much of Prince George’s County is inside the Washington metropolitan area, so eligibility must be checked address by address rather than assumed. |
| Conventional | Conventional loans permit approved community second liens under defined conditions, governed by the specific product and its mortgage insurance requirements. |
To understand FHA financing before layering county assistance on top, our Maryland FHA loans guide covers it in detail.
How to apply
- Find an approved certified lender. This is mandatory — you cannot apply to the county directly for any of the three programs.
- Work out which program fits. If you are an eligible essential worker, compare CWHAP against P2P. If you are buying inside the Beltway at a higher income, look at HEP.
- Compare the forgiveness schedules against your plans. Fifteen years, ten years and five years are very different commitments.
- Complete the 8-hour homebuyer education course. All three programs require it.
- Ask about layering with the Maryland Mortgage Program and, if buying in Laurel, the city program.
Common mistakes
- Assuming Pathway to Purchase is the only option. Since July 1, 2026 there are three county programs, and P2P is not always the best fit.
- Missing P2P’s five-year forgiveness cliff. Nothing is forgiven before year six.
- Reading CWHAP’s cap as a flat $50,000. It is the lesser of $50,000 or 25% of the purchase price.
- Assuming any essential worker qualifies for CWHAP. The eligible roles and employers are narrowly defined.
- Assuming HEP applies countywide. It is targeted inside the I-495 Capital Beltway.
- Trying to apply directly. All three require an approved lender.
- Treating “may be able to leverage” as a guarantee that county and state assistance will combine on your file.
Frequently asked questions
How much down payment assistance can I get in Prince George’s County?
Up to $50,000 through Pathway to Purchase or the Critical Workforce Housing Assistance Program, or up to $30,000 through the Homeownership Equity Program, depending on which you qualify for. Statewide Maryland Mortgage Program assistance may be available in addition.
Do I have to pay it back?
All three county programs are zero-interest deferred second mortgages that are forgiven over time if you stay. P2P forgives fully at fifteen years, CWHAP at ten and HEP at five. Sell, transfer, refinance or move out before then and the unforgiven balance may become repayable.
Do I have to be a first-time homebuyer?
Pathway to Purchase and the Critical Workforce Housing Assistance Program require first-time buyer status. The Homeownership Equity Program lists first-time homebuyers among several eligible groups, alongside county residents, public-sector workers, former renters in designated areas and households with multigenerational caregivers.
What are the income limits?
Pathway to Purchase is limited to households at or below 80% of area median income. The Homeownership Equity Program and the Critical Workforce Housing Assistance Program both extend to 120% of area median income.
Is there a purchase price limit?
The Homeownership Equity Program states no purchase price limit. Note that the Critical Workforce program caps assistance at 25% of the purchase price, which functions as a constraint on lower-priced homes.
Who qualifies as a critical workforce employee?
Full-time teachers at Prince George’s County Public Schools; full-time nurses in a medical office or hospital located in the county; and full-time firefighters, EMTs, correctional officers, police officers, public safety dispatchers or deputy sheriffs employed by a county public safety agency.
Can I apply to the county myself?
No. The County states that homebuyers must use an approved lender and cannot apply for the programs directly.
Can I combine county assistance with the Maryland Mortgage Program?
The County states that eligible participants of all three programs may be able to leverage other resources including the Maryland Mortgage Program. That is a positive signal, not a guarantee — whether a specific combination works depends on both programs’ rules and your first mortgage.
Is homebuyer education required?
Yes. All three county programs require an 8-hour homebuyer education course.
What if I am buying in Laurel?
The City of Laurel operates its own assistance for purchases within city limits, in addition to county and state programs. Contact the City’s Department of Economic and Community Development for current terms.
Sources
- Prince George’s County Department of Housing and Community Development — First Time Home Buyers Assistance Programs: the three programs offered beginning July 1, 2026 and the requirement that homebuyers use an approved lender and cannot apply directly.
- Prince George’s County DHCD — Pathway to Purchase: up to $50,000, zero-interest deferred loan, the three-year non-ownership condition, primary residence occupancy, the forgiveness schedule with no forgiveness in years 1–5 followed by 10% per year for ten years and full forgiveness at fifteen years, repayment on sale, transfer, refinance or loss of primary residence status, the 80% area median income limit, the 8-hour homebuyer education requirement, and Fiscal Year 2026 awards of more than $1.2 million to 33 homebuyers.
- Prince George’s County DHCD — Homeownership Equity Program: up to $30,000 per buyer, zero percent deferred second mortgage, 20% annual forgiveness over five years, the 120% area median income limit, the $1,000 minimum buyer contribution, the 8-hour education requirement, eligible property types inside the I-495 Capital Beltway, absence of a purchase price limit, owner-occupancy requirement, eligible groups, Housing Investment Trust Fund funding, and application through an approved certified lender.
- Prince George’s County DHCD — Critical Workforce Housing Assistance Program: up to $50,000 or 25% of the purchase price whichever is less, zero percent deferred second mortgage, 10% annual forgiveness over ten years, the 120% area median income limit, the named eligible occupations and employers, first-time homebuyer requirement, and the 8-hour education requirement.
- Prince George’s County DHCD — statements that eligible participants of each program may be able to leverage other homeownership resources including the Maryland Mortgage Program.
- Maryland Mortgage Program — Pathway to Purchase in Prince George’s County: assistance ceiling, zero percent structure, forgiveness schedule, countywide property eligibility and the eight-hour HUD-certified homebuyer class.
- Maryland Mortgage Program — down payment assistance offered by location: listing of Pathway to Purchase and the City of Laurel First-Time Homebuyer Assistance Program among local assistance partners.
- Maryland Department of Housing and Community Development — Maryland Mortgage Program structure, assistance options and approved lender requirement.
Pathway to Purchase verified September 2, 2026 against the Maryland Mortgage Program; the Prince George’s County program pages could not be re-read on that date, and their figures were last confirmed on August 23, 2026. County program terms, income limits and funding availability change, and awards are subject to available funding. Confirm current figures with Prince George’s County DHCD and an approved lender before relying on anything here.
This page explains how down payment assistance in Prince George’s County generally works. It does not determine individual eligibility, is not a commitment to lend, and is not a Loan Estimate. Program terms are set by Prince George’s County, the City of Laurel and the Maryland Department of Housing and Community Development, and participating lenders may apply additional requirements. Maryland Homebuyer Hub is not affiliated with, endorsed by, or acting on behalf of Prince George’s County or any government agency.