What is the Maryland Mortgage Program?
Short answer: the Maryland Mortgage Program is the state’s homebuyer mortgage program, run by the Maryland Department of Housing and Community Development. It combines a 30-year fixed-rate first mortgage with optional down payment and closing cost assistance, and it is delivered through approved private lenders rather than by the state directly.
Two things follow from that, and both matter more than they sound.
First, MMP is a mortgage, not a grant fund. You do not apply to Maryland for a cheque. You apply for a Maryland Mortgage Program loan through a participating lender, and the assistance rides along with it.
Second, you cannot get MMP assistance through just any lender. MMP loans must be originated by an approved MMP lender, of which there are more than a hundred across the state. A lender who does not participate cannot offer you these products at all — which is why two lenders can give you completely different answers about what is available to you.
Is the Maryland Mortgage Program just down payment assistance?
No — and this is the single most misunderstood thing about it
People search for “Maryland down payment assistance” and end up at MMP, then assume the assistance is a standalone product they can bolt onto any mortgage. It is not.
- The assistance is attached to an MMP first mortgage. You choose an MMP product, and that product either includes assistance or it does not.
- Some MMP products include no assistance at all. The “Direct” products exist precisely because some buyers want the MMP rate without a second lien.
- The assistance is usually a second mortgage, not free money — a zero percent deferred loan recorded as a lien against the property.
The useful way to think about it: you are not “getting down payment assistance.” You are choosing a Maryland Mortgage Program product, and different products come with different amounts of help attached.
That framing also explains a question that confuses a lot of buyers: whether you can take MMP assistance and use it with a mortgage from your own bank. You cannot. The assistance and the first mortgage are one package.
Assistance from other sources — a county program, an employer, a grant — is a separate matter, and is covered further down.
The two MMP product tracks
MMP organises its main products into what it calls a dual track product line. Which track you are on is decided by one question: have you owned a home in the last three years?
| 1st Time Advantage | Flex | |
|---|---|---|
| Who it is for | First-time homebuyers | First-time or repeat homebuyers |
| Rate | Usually the lowest MMP rate available | Slightly higher than 1st Time Advantage |
| Assistance options | Direct, 6000, 3%, 4%, 5%, HomeStart | Direct, 6000, 3% |
The practical read: if you qualify as a first-time buyer, the 1st Time Advantage track gives you both the better rate and more assistance choices. Flex exists so that repeat buyers are not shut out of the program entirely, and it is the only statewide route to MMP assistance for someone who already owns or recently owned.
Do you have to be a first-time homebuyer?
Not always — and MMP’s definition is not the one you expect
For MMP purposes, a first-time homebuyer is someone who has not owned residential property anywhere in the last three years. Not “has never owned a home.” Anywhere, three years.
There are then two exceptions that let a repeat buyer use first-time products anyway:
- Targeted Areas. A repeat buyer purchasing in a designated Targeted Area may use MMP products, subject to that jurisdiction’s household income limits.
- Veterans. A veteran using their exemption for the first time does not need to be a first-time homebuyer.
And separately: even where first-time status is not required, you still may not own a residence at the time of closing.
MMP’s first-time definition is not Maryland’s transfer tax definition
Maryland also has a first-time homebuyer rule for the state transfer tax, and it is a different test entirely — that one looks at whether you have ever owned a principal residence in Maryland, with no three-year window.
MMP’s own materials flag this explicitly, because people assume qualifying for one means qualifying for the other. You can easily qualify for one and not the other. Have both assessed separately.
How much down payment assistance can you get?
Short answer: from nothing to 6% of your first mortgage, depending on which product you choose. Every MMP assistance option is a zero percent deferred, repayable second lien unless a specific product says otherwise.
| Product | Assistance | Structure | Partner Match |
|---|---|---|---|
| Direct (either track) | None | External assistance may still be used | — |
| 6000 (either track) | $6,000 | 0% deferred, repayable | Allowed |
| 3% Loan (either track) | 3% of first mortgage | 0% deferred, repayable | Not available |
| 1st Time Advantage 4% Loan | 4% of first mortgage | 0% deferred, repayable | Not available |
| 1st Time Advantage 5% Loan | 5% of first mortgage | 0% deferred, repayable | Not available |
| HomeStart | 6% of first mortgage | 0% deferred, repayable | Not available |
What “zero percent deferred, repayable” actually means
It is worth slowing down here, because this is where buyers get an unpleasant surprise years later.
- Zero percent — no interest accrues on the assistance.
- Deferred — you make no monthly payments on it while you have the first mortgage.
- Repayable — it is still a loan. It becomes due when the first mortgage ends: sale, refinance, transfer, or payoff.
So a 5% assistance loan on a $350,000 first mortgage is $17,500 that sits quietly behind you and then has to be repaid the day you sell or refinance. That is a genuinely good deal — interest-free money for the years you own the home — but it is not a grant, and planning as though it were is a mistake.
Percentage-based assistance scales with your loan, not your down payment
The 3%, 4% and 5% options are calculated on the first mortgage amount. On a larger purchase they produce more assistance; on a smaller one, less. The $6,000 products are flat, which makes them relatively more generous at lower price points and relatively less at higher ones. Worth comparing both ways rather than assuming the percentage is always better.
Partner Match
MMP maintains a network of employers, builders and community organizations that contribute toward a buyer’s costs, and the state matches that contribution up to $2,500. Note the restriction in the table: Partner Match works with the 6000 products, not with the percentage-based assistance loans. If your employer participates, that changes which product is best for you.
HomeStart: the deepest assistance MMP offers
Short answer: HomeStart provides a down payment assistance loan equal to 6% of the first mortgage — the largest standard MMP assistance percentage — and is reserved for borrowers with household income at or below 50% of area median income.
Same structure as the other options: zero percent, deferred, repayable when the first mortgage ends. Partner Match is not available with it.
If your household income is genuinely at or below 50% AMI, this is almost always the product to ask about first. It is also frequently missed, because buyers assume the lowest-income tier of a state program will be the most restrictive rather than the most generous.
Maryland SmartBuy: buying a home with student debt
Short answer: SmartBuy pays off your qualifying student debt in full at closing, up to 15% of the home’s purchase price with a maximum of $25,000, structured as a five-year forgivable loan.
It is one of the few programs of its kind in the country, and it is unusual in that it does not simply help with the down payment — it removes a debt that was suppressing how much house you could qualify for in the first place.
What is verified about the current version:
- Pays qualifying student debt in full at closing; any balance above the cap is yours to cover
- Up to 15% of purchase price, maximum $25,000
- Zero percent, forgiven after five years if you stay in the home
- Requires a minimum $1,000 student debt balance
- Requires a credit score of at least 720 — considerably higher than MMP’s general minimum
- First-time homebuyer, unless purchasing in a Targeted Area
- Conventional financing only
- You may not own other real property at closing
- Available only through SmartBuy-approved lenders, a narrower list than MMP lenders generally
The 720 credit requirement is the detail that most often ends the conversation, so it is worth checking early rather than late.
Other Maryland Mortgage Program options
HomeAbility
For homebuyers with disabilities. It is conventional-only, offers a second lien of up to 25% loan-to-value within a maximum combined loan-to-value of 105%, may require manual underwriting with stricter requirements, and MMP notes that its funds are limited. If it fits your situation, ask early in the process rather than late.
FHA 203(k) Limited
Lets you finance repairs and modernisation as part of the purchase rather than arranging separate financing afterwards — useful in Maryland’s older housing stock, where a sound house with a dated kitchen or ageing systems is a common find.
Montgomery County products
MMP runs county-specific products available only for purchases in Montgomery County, including a general homeownership product and a separate loan restricted to particular county employee groups. Amounts and eligibility differ meaningfully from the statewide products, and one of them carries a notably higher credit score requirement. We will cover these in detail on a dedicated Montgomery County assistance page.
Maryland HomeCredit (mortgage credit certificates)
Is the Maryland HomeCredit Program still available?
Not for new certificates. The Maryland HomeCredit Program, which issued mortgage credit certificates, is closed for new reservations. Homeowners who already hold an MCC and are refinancing can have it re-issued through a lender approved for that program.
This still appears on plenty of Maryland mortgage websites as though it were available. It is not, and building a purchase plan around the tax credit would be a mistake.
Talk through which Maryland Mortgage Program option suits your situation
The right track, the right assistance amount and whether Partner Match applies all depend on details worth checking properly before you shop.
This is not a commitment to lend. All loans subject to credit approval.
Who qualifies for the Maryland Mortgage Program?
Beyond the first-time question, MMP applies its own underwriting standards on top of whatever the underlying loan type requires.
| Loan type | Minimum credit score | Maximum debt-to-income |
|---|---|---|
| Conventional | 640 | 50% with automated underwriting approval |
| FHA | 640 | 50% at 680+, 45% at 640–679 |
| VA and USDA | 640 | 50% at 680+, 45% at 640–679 |
Some individual products set higher minimums than the table — SmartBuy at 720 is the clearest example. And note the shape of the debt-to-income rule: on the government loan types, moving from a 679 score to a 680 does not just improve your pricing, it can raise your allowable debt ratio by five percentage points. Near that boundary, a small credit improvement is worth real borrowing capacity.
Beyond credit and debt:
- You must occupy the home as your primary residence. Investment properties and second homes are not eligible.
- Household income counts everyone. MMP looks at the combined income of all household members aged 18 and over — not only the people on the loan.
- You must use an approved MMP lender.
- Homebuyer education is required.
MMP guidelines are not the only guidelines
An MMP loan has to satisfy MMP’s rules, the rules of the master servicer that ultimately buys the loan, the insurer’s rules for the underlying loan type, and anything your individual lender requires on top. When you get an answer that seems stricter than what the state publishes, that is usually why. It is also why a second opinion from a different MMP lender is sometimes worth getting.
Maryland Mortgage Program income and purchase price limits
Short answer: both exist, and both vary by county. There is no single statewide number.
Household income limits depend on two things: where you are buying and how many people are in the household. Households of one to two people fall under one limit; households of three or more get a somewhat higher one. Purchase price limits also vary by jurisdiction.
We have deliberately not printed a table of dollar figures here. MMP revises these, they differ by county, and a stale number on a mortgage website is worse than no number at all. The state publishes the current limits and updates them at source:
- Check the current income, loan and purchase price limits for your county on MMP’s official limits page.
- Confirm whether your address sits in a Targeted Area using MMP’s mapping tool, since that changes the first-time buyer rule.
- Have a lender confirm the figures against your actual household before you rely on them.
One point that catches people: because income is measured across the whole household including adults who will not be on the loan, a household can exceed the limit without the borrowers themselves earning very much. An adult relative living with you counts.
Using MMP with FHA, VA, USDA and conventional loans
MMP is not a separate kind of mortgage sitting outside the normal system. Underneath, an MMP loan is an ordinary FHA, VA, USDA or conventional loan — the state layers its rate, its assistance and its eligibility rules on top.
- FHA pairs with MMP frequently, and suits buyers whose credit sits nearer the 640 floor. Our Maryland FHA loans guide covers that program in depth.
- Conventional allows the highest debt-to-income under MMP’s matrix and is the required type for SmartBuy and HomeAbility.
- VA can serve as the MMP first mortgage. For an eligible veteran this is worth modelling carefully, because VA already requires no down payment — which often makes MMP assistance most valuable for closing costs rather than the down payment.
- USDA can also serve as the MMP first mortgage, and has the same zero-down characteristic in designated rural areas.
The broader comparison of all four loan types lives on our Maryland loan programs overview.
MMP and county or city assistance: two different layers
This is where Maryland gets genuinely more complicated than most states, and where buyers most often get contradictory answers.
Statewide and local assistance are separate layers
- The statewide layer is MMP: the products on this page, available anywhere in Maryland through an approved lender.
- The local layer is run by counties and municipalities, with their own money, their own rules and their own applications. Several Maryland jurisdictions offer substantial assistance entirely independently of MMP.
They are not alternatives to one another, and they are not automatically combinable either. Whether a specific local program can sit alongside a specific MMP product depends on both programs’ rules and on current funding.
Some local programs are designed to work with MMP directly; others operate on their own terms. Jurisdictions with meaningful homebuyer assistance include Prince George’s County, Montgomery County, Anne Arundel County, Howard County, Baltimore City, Charles County and the City of Hagerstown in Washington County, among others.
Do not assume programs stack
Combining a state product with a county program is sometimes possible and sometimes explicitly prohibited, and the answer changes as programs are revised and as funding runs out mid-year. Anyone who tells you confidently that two specific programs stack, without checking both sets of current rules, is guessing.
Where an MMP product allows external assistance, our tables above say so. Beyond that, it is a question for a lender who works with both programs.
Our Maryland down payment assistance guide covers the statewide and local landscape together. We are building dedicated county assistance guides, and will link them here as they publish.
How to apply for the Maryland Mortgage Program
- Check the limits for your county. Household income and purchase price, before you fall in love with a house.
- Find an approved MMP lender. A lender outside the program cannot offer these products at all.
- Get pre-approved and work out which track and which assistance option fits — including whether Partner Match applies to you.
- Complete homebuyer education. Required for all MMP borrowers; classes approved by HUD, Fannie Mae or Freddie Mac, online or in person. If you are also using other assistance, the class must satisfy that funder too.
- Shop and go under contract, keeping the purchase price limit in view.
- Your lender reserves the loan, which commits the rate.
- Underwriting and closing, with the assistance recorded as a second lien.
Take the class early, not late
Homebuyer education is required, and leaving it until you are under contract is a common way to lose time you cannot spare. MMP encourages buyers to complete it before they even sign a contract. Find approved classes through MMP’s homebuyer education page.
If you are earlier in the process, our Buying a Home in Maryland guide covers the whole journey, and the free Maryland first-time homebuyer workshop walks through financing and assistance end to end.
See what you qualify for with a Maryland Mortgage Program lender
Pre-approval tells you which track you are on, how much assistance is available and what your real payment looks like.
This is not a commitment to lend. All loans subject to credit approval.
Common Maryland Mortgage Program mistakes
- Assuming assistance is a grant. Most MMP assistance is a deferred second lien that comes due on sale or refinance.
- Assuming you must be a first-time buyer. Flex serves repeat buyers, and Targeted Areas and the veteran exemption open the first-time track to others.
- Assuming “first-time” means never. It means not in the last three years.
- Working with a lender outside the program and only discovering it late.
- Forgetting that household income includes adults not on the loan.
- Taking the largest assistance number available without comparing rate, mortgage insurance and the size of the eventual repayment.
- Counting on a mortgage credit certificate, which is closed to new applicants.
- Leaving homebuyer education until the end.
Who the Maryland Mortgage Program suits — and who it does not
Likely a strong fit
- First-time buyers with steady income and limited savings.
- Households at or below 50% of area median income, where HomeStart offers 6%.
- Buyers with qualifying student debt and strong credit, where SmartBuy can remove the debt entirely.
- Repeat buyers who need help with closing costs and have no other route to assistance.
- Anyone whose employer participates in Partner Match.
Possibly better served another way
- Buyers with a substantial down payment. The MMP rate advantage may not offset a second lien you do not need.
- Households above the county income limit, who are simply not eligible.
- Buyers purchasing an investment property or second home — not eligible under any MMP product.
- Eligible veterans, who should compare a straight VA loan first, since VA already requires no down payment and carries no monthly mortgage insurance.
- Buyers who expect to sell or refinance within a few years, where the deferred assistance comes due sooner than the benefit accrues.
Maryland Mortgage Program FAQ
Is the Maryland Mortgage Program the same as down payment assistance?
No. MMP is a first mortgage program from the Maryland Department of Housing and Community Development, and some of its products include down payment assistance. The assistance is attached to an MMP first mortgage; it cannot be taken on its own and used with a different lender’s loan.
Do you have to be a first-time homebuyer to use MMP?
Not necessarily. The 1st Time Advantage track requires it, but Flex serves repeat buyers. Repeat buyers may also use first-time products when purchasing in a Targeted Area, and a veteran using their exemption for the first time is exempt from the requirement.
What counts as a first-time homebuyer for MMP?
Someone who has not owned residential property anywhere in the past three years. This is different from Maryland’s transfer tax definition, which looks only at prior ownership of a principal residence in Maryland.
How much down payment assistance does MMP provide?
Depending on the product: none, a flat $6,000, or 3%, 4%, 5% or 6% of the first mortgage. The 6% option, HomeStart, is limited to households at or below 50% of area median income.
Do you have to pay MMP assistance back?
Generally yes. Standard MMP assistance is a zero percent deferred second lien with no monthly payments, repayable when the first mortgage ends through sale, refinance, transfer or payoff. SmartBuy’s student debt relief is structured differently and is forgiven after five years in the home.
What credit score do you need for the Maryland Mortgage Program?
A minimum middle credit score of 640 for the standard products, and some products require more — SmartBuy requires at least 720. Individual lenders may also apply their own higher standards.
What are the MMP income limits in Maryland?
They vary by county and by household size, with a higher limit for households of three or more. Income is counted across all household members aged 18 and over, including adults who will not be on the loan. Check the current figures on MMP’s official limits page.
Can you use MMP with an FHA, VA, USDA or conventional loan?
Yes. Underneath, an MMP loan is one of those four loan types, with the state’s rate, assistance and eligibility rules layered on top. Some specialty products are restricted — SmartBuy and HomeAbility are conventional only.
Can MMP be combined with county down payment assistance?
Sometimes. Some MMP products explicitly allow assistance from external sources and others do not, and each county program has its own rules and funding. It has to be checked against both programs’ current terms rather than assumed.
Can you use any lender for the Maryland Mortgage Program?
No. MMP loans must be originated through an approved MMP lender. There are more than a hundred approved lenders, but a lender outside the program cannot offer these products at all.
Is homebuyer education required?
Yes, for all MMP borrowers. Classes approved by HUD, Fannie Mae or Freddie Mac are acceptable, online or in person. If you are using other assistance as well, the class must also meet that funder’s requirements.
Is the Maryland HomeCredit mortgage credit certificate still available?
No. The program is closed for new reservations. Existing certificate holders who are refinancing can have theirs re-issued through an approved lender.
Can you use MMP for an investment property?
No. MMP requires that you occupy the home as your primary residence. Investment properties and second homes are not eligible.
Sources
- Maryland Mortgage Program — Product Matrix dated 7/24/2026 (product lineup across both tracks, down payment assistance amounts and structures, Partner Match availability by product, minimum credit scores, maximum debt-to-income by loan type and score band, first-time homebuyer requirement and exceptions, HomeAbility and Montgomery County product terms).
- Maryland Mortgage Program — Eligibility (first-time homebuyer definition and the three-year rule, Targeted Area and veteran exceptions, household income counted across members aged 18 and over, primary residence occupancy).
- Maryland Mortgage Program — Home Loans and Down Payment Assistance pages (current product lineup, Partner Match matched up to $2,500, specialty products).
- Maryland Mortgage Program — 1st Time Advantage and Flex product pages (assistance variants, deferred structure and repayment triggers, homebuyer education requirement).
- Maryland Mortgage Program — Maryland SmartBuy (student debt paid at closing, up to 15% of purchase price to a $25,000 maximum, five-year forgiveness, minimum debt balance, 720 credit score, first-time and property ownership conditions, approved lender requirement).
- Maryland Mortgage Program — Maryland HomeCredit (program closed for new mortgage credit certificate reservations; re-issuance available for existing certificates).
- Maryland Department of Housing and Community Development — program administration and approved lender requirement.
Verified August 23, 2026 against the current MMP product matrix and program pages. Maryland Mortgage Program products, rates, income limits, purchase price limits and funding availability all change. Confirm current terms with an approved MMP lender before relying on any figure here.
This page explains how the Maryland Mortgage Program 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 the Maryland Department of Housing and Community Development, and participating lenders, the master servicer and mortgage insurers may apply additional requirements. Maryland Homebuyer Hub is not affiliated with, endorsed by, or acting on behalf of the Maryland Department of Housing and Community Development or any government agency.