Maryland Down Payment Assistance Programs

What down payment assistance actually is

Down payment assistance is money that helps cover the cash you need at closing. In Maryland it comes from three different places — the state, your county, and sometimes your city — and each source sets its own rules.

The four forms assistance takes

• Grants. Genuinely not repaid. Where Maryland programs offer grants, they are often tied to a specific employer, neighbourhood or program.
• Deferred zero-interest loans. Widely used by Maryland programs, including across the Maryland Mortgage Program. No monthly payment and no interest, but the full amount comes due when you sell, refinance, transfer the property or pay off the first mortgage.
• Forgivable loans. Written off after you live in the home for a set period. Sell early and you repay some or all of it.
• Repayable second mortgages. An actual second payment alongside your first mortgage. Less common for first-time buyer programs, but it exists.

Down payment help and closing cost help are different

Some programs cover only settlement and closing costs. Others can be applied to the down payment itself. Several allow either. This matters because a buyer who has the down payment saved but is short on closing costs needs a different program than a buyer facing the opposite problem.

How much down payment assistance can you get in Maryland?

There is no single statewide number, and any page that gives you one is oversimplifying. Verified amounts currently range from a few thousand dollars up to $50,000 in some jurisdictions.

What you may be offered depends on:

• Where you are buying — county and city programs vary enormously, and some are limited to specific neighbourhoods or municipal boundaries
• Your household income relative to the area median income (AMI) for your area and household size
• The purchase price, since many programs cap it
• Which first mortgage you use, because some assistance is tied to specific loan products
• Whether you are a first-time buyer under that program’s definition
• Funding availability, which is finite and moves in cycles

That last point is the one buyers underestimate. Assistance programs run on allocated budgets. A program that was funded when you started looking can be exhausted by the time you write an offer.

If you are earlier in the process and still mapping out the steps, our guide to buying a home in Maryland covers the full sequence from planning through settlement.

Statewide assistance: the Maryland Mortgage Program

The Maryland Mortgage Program (MMP), run by the Maryland Department of Housing and Community Development, is Maryland’s statewide homebuyer mortgage and assistance program.

MMP first-mortgage options that do not include assistance

Two MMP products are mortgages only. They are often the lowest-rate options in the program precisely because no assistance is attached, and outside assistance from a compatible source may still be used with them.

• 1st Time Advantage Direct — for first-time buyers. No MMP down payment assistance. External assistance may be used.
• Flex Direct — open to first-time and repeat buyers. No MMP down payment assistance. External assistance may be used.

1st Time Advantage: assistance for first-time buyers

This product line requires first-time homebuyer status, subject to the exceptions described below.

• 1st Time Advantage 6000 — a $6,000 second lien at zero percent interest with no payments due for the life of the first mortgage. It becomes due when the first mortgage ends through repayment, refinance, transfer or sale. This product is eligible for Partner Match.
• 1st Time Advantage 3%, 4% and 5% — assistance equal to 3%, 4% or 5% of the first mortgage, as a zero-percent deferred second lien. On a larger loan, the percentage products can substantially exceed the flat $6,000 option.
• HomeStart — part of this line, for borrowers with household income at or below 50% of area median income. Assistance equals 6% of the total first mortgage as a zero-interest, 30-year deferred loan.
• MMP-UPLIFT 5% — assistance equal to 5% of the first mortgage. Eligibility here is tied to the property: it is available only on eligible UPLIFT properties, not to any buyer who otherwise qualifies.

Flex: assistance for first-time and repeat buyers

The Flex line does not require first-time buyer status, which makes it one of the few meaningful assistance routes for Maryland move-up buyers.

• Flex 6000 — a $6,000 zero-percent deferred second lien on the same terms as the 1st Time Advantage version. Eligible for Partner Match.
• Flex 3% — assistance equal to 3% of the first mortgage as a zero-percent deferred second lien.

Flex carries one requirement worth noting: you may not own any other real property at the time of closing.

Partner Match

If you receive assistance from an MMP-approved Partner organization — an employer, a community organization or a local government — MMP may match it as additional assistance, up to $2,500.

Partner Match is not a general MMP benefit. It applies specifically to the 1st Time Advantage 6000 and Flex 6000 products.

Specialty products

• Maryland SmartBuy — for first-time buyers carrying student debt, with three assistance options: no assistance, $6,000, or 6% for buyers at or below 50% AMI. SmartBuy is conventional-only, which means it cannot be paired with FHA financing.
• Maryland HomeAbility — for first-time buyers with a disability, with its own income limits. Also conventional-only.
• FHA Limited 203(k) — available through MMP for buyers financing repairs or modernisation as part of the purchase. See our Maryland FHA loan guide for how 203(k) works.

What MMP requires beyond your mortgage

• Completion of an approved homebuyer education course, taken through a provider approved by the program
• Household income within MMP limits, which vary by jurisdiction and household size
• A purchase price within MMP limits
• Meeting MMP credit requirements, which are separate from your loan program’s
• Working with a state-approved MMP lender — not every lender participates

If you want a plain-English walkthrough of the Maryland buying process before committing to anything, our free Maryland first-time homebuyer seminar covers financing, assistance and the purchase process. It is general education and is separate from any program’s required homebuyer education course.

First-time status has three recognized exceptions: you have not owned a principal residence in the past three years; you are buying in a designated targeted area; or you are an honorably discharged veteran who has not previously used the exemption.

Comparing Maryland statewide assistance

The table separates mortgage-only products from products that actually carry assistance, because the distinction is easy to miss when shopping.

Program structures verified against the Maryland Mortgage Program, August 2026. Assistance amounts, income limits and purchase price limits are set by the program and change; confirm current terms with an MMP-approved lender before relying on them.

Maryland down payment assistance by county and city

Local programs are separate from the state program, with their own money, their own rules and their own application. In several Maryland jurisdictions the local assistance is larger than what the state offers.

Prince George’s County

Pathway to Purchase is the county’s flagship program, providing up to $50,000 in down payment and closing cost assistance for eligible first-time buyers, as a zero-interest deferred loan that is forgiven after sustained occupancy. Household income must be at or below 80% of area median income.

The sequence matters. You get pre-approved with an MMP lender first, and the lender then submits a separate application to the county. Pathway is explicitly designed to combine with MMP — one documented path pairs it with 1st Time Advantage 6000 plus a $2,500 partner contribution, adding $8,500 on top of the Pathway funds.

As of July 1, 2026 the county also offers two newer programs, the Homeownership Equity Program and the Critical Workforce Housing Assistance Program. Terms had not been published at the time of our review; check with Prince George’s County DHCD for current details.

Separately, the City of Laurel operates its own first-time homebuyer assistance program within the county.

Montgomery County and Gaithersburg

Montgomery County has two assistance products delivered through the Maryland Mortgage Program:

• Montgomery Homeownership Program — assistance for first-time buyers of up to 40% of borrower household income, capped at $50,000.
• MEDPAL (Montgomery Employee Down Payment Assistance Loan) — a $50,000 assistance loan for first-time buyers who are employed by certain Montgomery County departments. Separate income limits apply.

The City of Gaithersburg runs its own program, most recently published as offering up to $40,000 as a zero-percent deferred loan secured by a promissory note and second deed of trust. It is for first-time buyers — defined as never having owned, or not having owned in the past three years — who will occupy the home as their only residential property.

Two Gaithersburg conditions catch people out. The property must be inside the City of Gaithersburg corporate limits, and not every address with a Gaithersburg mailing address is. Applicants must also have lived or worked in the City for at least a year before applying, though that requirement is waived for Priority Populations including K-12 school employees, City employees, police and fire safety personnel. Applicants must work with an MMP-approved lender, and pre-qualification does not guarantee funds. Confirm the current assistance amount and availability directly with the City of Gaithersburg.

Howard County

The Settlement Downpayment Loan Program (SDLP) covers five distinct loans, and the first-time requirement is not uniform across them:

• HomeStarter, HomeSteader and DreamMaker — first-time homebuyers only
• Revitalization and Workforce Initiative — no first-time requirement, which makes Howard County one of the more accessible jurisdictions for repeat buyers

Across the program, buyers must have at least $1,000 to put toward settlement or down payment costs plus one month of principal, interest, taxes and insurance in savings, and must be approved for a fixed-rate primary mortgage. Funds are reserved by your lender with the county, not by you directly. Assistance amounts and income limits are set by the county and change; confirm current figures with Howard County Housing.

Baltimore County

The Settlement Expense Loan Program (SELP) lends up to $10,000 to income-eligible first-time buyers toward closing costs. Two conditions define it: the home must be within a designated Community Conservation Area, and the assistance is a deferred loan that is forgivable across a 15-year period of affordability under federal HOME program rules. A two-part first-time homebuyer class is required. Confirm the current maximum and whether funds are available with the Baltimore County Department of Housing and Community Development.

Baltimore City

Baltimore City offers several homeownership incentive programs, including the First-Time Homebuyers Incentive Program, Buying Into Baltimore, Live Near Your Work, the Vacants to Value Booster, a City employee incentive and Buy Back the Block.

Three rules apply across the City incentive programs and are worth knowing before you shop:

• City incentives are generally five-year forgivable loans. Live Near Your Work is structured as a grant.
• Homeownership counseling must be completed before you sign a contract, from a City-approved agency. Doing it afterward does not qualify you.
• You must contribute at least $1,000 of your own funds.

Award amounts differ by program and change with funding cycles, so confirm current figures with the Baltimore City Department of Housing and Community Development before relying on any published number.

Charles County

The Settlement Expense Loan Program (SELP) provides up to $6,000 in direct assistance with settlement expenses for qualified low- and moderate-income first-time buyers. It is secured by a second mortgage, with repayment deferred until the property is resold, transferred or refinanced, or the buyer stops occupying it as a principal residence.

Harford County

Harford County operates a Settlement Expense Loan Program (SELP) for first-time buyers needing help with down payment and closing costs, secured by a lien recorded through a deed of trust. Preference is given to properties within the Southern County Task Force Area. The county does not publish a standard assistance amount; confirm current terms directly with Harford County.

Anne Arundel County, Washington County and Hagerstown

Anne Arundel County offers a Mortgage Assistance Program administered by Arundel Community Development Services. In Washington County, the Hagerstown Home Store administers homebuyer assistance for purchases in Hagerstown. Both are recognized by the state as current local assistance sources. Terms were not published in a form we could verify at the time of review, so check directly with each administering agency.

Other Maryland jurisdictions

Local assistance in Maryland changes regularly, and jurisdictions not listed here may still have programs. The Maryland Mortgage Program maintains a list of assistance organised by county, which is a reliable starting point for a location we have not covered above.

Who qualifies for Maryland down payment assistance?

Requirements vary by program, but many Maryland assistance programs look at the same factors:

• Household income, usually against area median income for your county and household size. Limits change annually.
• Purchase price, capped by many programs.
• Occupancy. Assistance is for homes you will live in. Investment property is out.
• Property location, sometimes down to specific municipal boundaries or designated areas.
• Homebuyer education, required by MMP and by many local programs. Several require it before you sign a contract.
• Credit. Programs set their own minimums, which can be higher than your loan program’s.
• Mortgage eligibility. Assistance sits on top of a first mortgage, so you have to qualify for that first.
• First-time buyer status, for many but not all programs.

Do you have to be a first-time homebuyer?

No — but it depends which program. Some Maryland assistance is limited to first-time buyers, and some is not.

Open to repeat buyers: the MMP Flex line, including Flex 6000 and Flex 3%; and Howard County’s Revitalization and Workforce Initiative loans.

First-time buyers only: the MMP 1st Time Advantage line including HomeStart and MMP-UPLIFT, SmartBuy, HomeAbility, Pathway to Purchase, the Montgomery County products, the Gaithersburg program, Baltimore County SELP, Charles County SELP, Harford County SELP, and Howard County’s HomeStarter, HomeSteader and DreamMaker.

Where a first-time requirement applies, many Maryland programs use a version of the same definition: you have not owned a principal residence in the past three years. Owning before that does not disqualify you. MMP also recognizes exceptions for purchases in targeted areas and for qualifying honorably discharged veterans. Individual local programs set their own definitions, so confirm with the administering agency rather than assuming the state rule carries across.

Using assistance with your mortgage

Assistance sits on top of a first mortgage. Which mortgage you choose can determine which assistance is available to you.

FHA loans

FHA is widely used alongside Maryland assistance, and MMP offers government loan options including FHA Limited 203(k). If you are weighing FHA, our Maryland FHA loan guide covers credit and down payment requirements, mortgage insurance and county loan limits in detail.

Conventional loans

Conventional financing works with assistance too, and two Maryland specialty programs — SmartBuy and HomeAbility — are conventional-only. If either applies to your situation, that choice is made for you.

VA and USDA loans

Buyers eligible for VA or USDA financing already have access to no-down-payment options, which changes the calculation: assistance may be more useful for closing costs than for a down payment. Not every assistance program pairs with every mortgage type, and program compatibility is set by the assistance program, not by the loan. Confirm the specific combination before planning around it.

For a broader comparison of the four main mortgage types, see our Maryland loan programs guide.

Can you combine Maryland assistance programs?

Sometimes, and Maryland has documented examples of it working. Prince George’s County explicitly designs Pathway to Purchase to combine with the Maryland Mortgage Program, and MMP’s Partner Match exists specifically to add partner funds on top of the 6000 products.

But stacking is never automatic. Whether two programs combine depends on:

• Whether each program permits layering with the other
• Lien position — each assistance source records a lien, and they have to be ordered acceptably
• Whether your mortgage investor permits the combination
• Total assistance caps, which some programs impose
• Whether both programs have funding available at the same time

The practical approach is to identify every program you might qualify for before your lender structures the loan. Stacking is far easier to plan at the start than to retrofit after an application is underway.

State, county and city assistance: how the layers fit together

Maryland buyers can potentially draw on three separate layers, and they are administered independently:

• State — the Maryland Mortgage Program. Available statewide, tied to an MMP first mortgage, delivered through state-approved lenders.
• County — run by county housing departments with their own budgets, eligibility rules and applications. Howard, Baltimore, Charles, Harford, Montgomery, Prince George’s and Anne Arundel counties all operate programs.
• City or municipal — run by individual cities, often tightly geographically bounded. Baltimore City, Gaithersburg, Laurel and Hagerstown all have their own.

Because each layer has its own rules, checking only one can cause buyers to miss available assistance. A buyer in Gaithersburg, for example, sits inside the state program, Montgomery County programs, and a city program simultaneously — three different possible sources with three different applications.

How to apply for Maryland down payment assistance

1. Identify every layer that covers your address. State, county, and city. If you are considering more than one area, check each — assistance can differ substantially across a county line, or even a municipal boundary.
2. Check the basic eligibility gates first. Income limits and purchase price limits are important initial eligibility gates, and both are published by the administering agency.
3. Get pre-approved with a lender approved for the programs you want. Not every lender participates in MMP, and some local programs require an MMP-approved lender specifically. This is where using the wrong lender quietly costs people assistance.
4. Complete required homebuyer education early. MMP requires an approved course. Several local programs require counseling before you sign a contract, and completing it afterward will not retroactively qualify you.
5. Have your lender reserve or apply for the funds. Many Maryland programs, including the Maryland Mortgage Program and Howard County’s SDLP, are reserved by the lender rather than applied for directly by the buyer.
6. Confirm funding is currently available for each program before you rely on it in your offer.
7. Coordinate the requirements before closing. Assistance programs add documents, inspections and timing requirements to the transaction. Surprises here delay settlements.

Common down payment assistance mistakes Maryland buyers make

• Assuming assistance is a grant. Many Maryland programs provide a deferred or forgivable loan recorded against your home. Read the repayment terms before you accept it.
• Only checking the state program. County and city assistance is separate money with separate applications, and in several jurisdictions the verified amounts exceed what the state program offers.
• Waiting until after making an offer. Several programs require counseling or approval before a contract is signed. By the time you are under contract it can be too late.
• Using a lender that does not participate. Assistance is delivered through approved lenders. The wrong choice can cost you the assistance entirely.
• Assuming every program works with every mortgage. SmartBuy and HomeAbility are conventional-only. Other programs have their own restrictions.
• Assuming “Direct” products include assistance. 1st Time Advantage Direct and Flex Direct are mortgages only.
• Relying on outdated amounts. Published figures go stale quickly. Several Maryland programs changed their assistance amounts in the last two years while old numbers continued circulating online.
• Not confirming funding is still available. Program budgets are finite and cycle. Existence and available funding are different facts.

Which Maryland assistance program might fit your situation?

Starting points for a conversation, not eligibility determinations. Most buyers fit more than one.

Maryland down payment assistance FAQ

Sources

This page is educational and general in nature. It does not determine your eligibility for any mortgage or assistance program, is not a commitment to lend, and is not a Loan Estimate. Assistance amounts, income limits, purchase price limits, program requirements and funding availability change, and programs may pause or close reservations without notice. Verify current terms with the administering agency and with a lender approved for the programs you are considering.