What is Maryland HomeStart?
Short answer: HomeStart is the Maryland Mortgage Program’s largest standard down payment assistance option — a loan equal to 6% of your first mortgage — and it is reserved for households earning at or below 50% of area median income.
It is not a separate mortgage. HomeStart is an assistance option you select within the Maryland Mortgage Program, attached to an MMP first mortgage in the same way as the 3%, 4% and 5% options. What sets it apart is the size of the assistance and the income ceiling that comes with it.
HomeStart is not 6% of free money
This is the most important sentence on the page. HomeStart assistance is a zero percent deferred second mortgage that has to be repaid — not a grant, and not forgiven over time.
You pay no interest and make no monthly payments on it. But the full amount comes due when your first mortgage ends: sale, refinance, transfer or payoff. On a $300,000 first mortgage, that is $18,000 waiting at settlement whenever you sell.
That is still an excellent deal — interest-free money for however long you own the home. It is simply not free money, and planning as though it were is the mistake this program most often produces.
What does “50% of area median income” actually mean?
It is a local number, not a national one
Area median income is the midpoint household income for the area you are buying in. Half of local households earn more; half earn less. HomeStart is for households at or below half of that midpoint.
Two consequences follow:
- The dollar figure changes by county. 50% AMI in Montgomery County is a very different number from 50% AMI on the Eastern Shore, because the underlying medians are different.
- It also changes by household size. Larger households get a higher threshold.
So there is no single “HomeStart income limit” for Maryland, and any page that gives you one number is oversimplifying.
Two details catch people out. First, MMP counts household income — the combined income of everyone aged 18 and over living in the home, including adults who will not be on the loan. An adult relative living with you counts, even though their income does nothing for your borrowing power.
Second, the figures are revised. Rather than print numbers that go stale, check the current limits for your county and household size on MMP’s official limits page, and have a lender confirm them against your actual household.
How much assistance does HomeStart provide?
A loan equal to 6% of the first mortgage amount. Because it is a percentage, it scales with your purchase:
| First mortgage | HomeStart assistance at 6% |
|---|---|
| $200,000 | $12,000 |
| $275,000 | $16,500 |
| $350,000 | $21,000 |
These are illustrations of the arithmetic, not quotes or eligibility findings — what you can actually borrow depends on your income, credit, debts and the county limits.
How it compares with the other MMP options
Within the Maryland Mortgage Program, the standard assistance ladder runs: no assistance, a flat $6,000, then 3%, 4%, 5% and finally HomeStart at 6%. HomeStart sits at the top of that ladder, which is exactly why it carries the income restriction.
Two structural differences worth knowing:
- Partner Match is not available with HomeStart. The state’s match of employer, builder or community contributions applies to the $6,000 products, not to the percentage-based assistance loans.
- Assistance from other sources is still permitted. A county program, employer help or a nonprofit contribution can generally sit alongside HomeStart, subject to every program’s own rules.
Who qualifies for HomeStart?
HomeStart applies the standard Maryland Mortgage Program requirements, plus its own income ceiling:
- Household income at or below 50% of area median income for your county and household size
- Generally a first-time homebuyer — meaning no residential ownership anywhere in the last three years
- Waivers available when buying in a designated Targeted Area, or for an honorably discharged veteran using the veteran exemption for the first time
- No other real property owned at approval and closing, even where the first-time requirement is waived
- Minimum middle credit score of 640
- Purchase price at or below the county limit
- The home occupied as your primary residence
- An approved MMP lender
- Homebuyer education completed before closing
On debt-to-income, MMP allows up to 50% on conventional loans with automated underwriting approval. On FHA, VA and USDA loans the ceiling is 50% at a credit score of 680 or above and 45% between 640 and 679 — so a small credit improvement near that boundary can meaningfully change what you can borrow.
Find out whether your household falls under the HomeStart threshold
The 50% area median income test depends on your county and household size, and it counts adults who will not be on the loan. It is worth calculating properly.
This is not a commitment to lend. All loans subject to credit approval.
Repayment: when the 6% comes due
HomeStart is a zero percent, deferred, repayable second mortgage recorded against the property. It becomes due in full when the first mortgage ends, which happens through:
- Sale of the home
- Refinance of the first mortgage
- Transfer of the property
- Payoff of the first mortgage — including paying it off early
There is no forgiveness schedule. It does not shrink over time and it does not disappear if you stay long enough. That distinguishes it from some county programs and from Maryland SmartBuy’s student debt assistance, both of which do forgive.
The refinance trap
Because a refinance triggers repayment, taking maximum assistance can make a future refinance harder — you would need enough equity to clear the second lien or arrange subordination. If rates are high when you buy and you expect to refinance, weigh the 6% against a smaller assistance option or none at all.
Which mortgage types work with HomeStart?
HomeStart is available across conventional, FHA, VA and USDA first mortgages. Underneath, an MMP loan is one of those four ordinary loan types with the state’s rate and assistance layered on top.
For eligible veterans and for buyers in USDA-designated rural areas, the underlying loan may already require no down payment — which usually makes HomeStart most valuable for closing costs rather than the down payment itself. Our Maryland loan programs overview compares all four, and our Maryland FHA loans guide covers the type most commonly paired with MMP at this income level.
HomeStart’s 6% option also appears within Maryland SmartBuy for borrowers at or below 50% AMI, so a buyer with student debt at this income level may be able to combine student debt payoff with 6% down payment assistance. That is a lender conversation, since both sets of rules apply.
How to apply
- Check your household income against the 50% AMI figure for your county and household size.
- Find an approved MMP lender — HomeStart is not available outside the program.
- Get pre-approved and compare HomeStart against the smaller assistance options, factoring in the rate difference and the eventual repayment.
- Complete homebuyer education through an approved provider.
- Shop within the purchase price limit, go under contract, and close with the assistance recorded as a second lien.
If you are earlier in the process, the free Maryland first-time homebuyer workshop covers financing and assistance, and Buying a Home in Maryland walks through the whole process.
HomeStart FAQ
What is Maryland HomeStart?
It is the Maryland Mortgage Program’s largest standard down payment assistance option: a loan equal to 6% of the first mortgage, available to households at or below 50% of area median income.
Is HomeStart a grant?
No. It is a zero percent deferred second mortgage that must be repaid when the first mortgage ends through sale, refinance, transfer or payoff. There is no forgiveness schedule.
What is the HomeStart income limit?
50% of area median income, which varies by county and household size. There is no single statewide figure. Household income counts everyone aged 18 and over, including adults who will not be on the loan.
How much money does HomeStart provide?
6% of your first mortgage amount, so it scales with the size of your loan rather than being a fixed sum.
Do you have to be a first-time homebuyer?
Generally yes, meaning no residential ownership anywhere in the last three years. The requirement can be waived when buying in a designated Targeted Area or for an honorably discharged veteran using the veteran exemption for the first time.
Can HomeStart be used with Partner Match?
No. Partner Match applies to the $6,000 assistance products, not the percentage-based options. Assistance from other outside sources is generally still permitted.
What credit score do you need?
A minimum middle credit score of 640, the standard Maryland Mortgage Program requirement. Individual lenders may require more.
Does HomeStart work with FHA, VA, USDA and conventional loans?
Yes, all four. For VA and USDA borrowers, who often need no down payment anyway, the assistance is usually most useful for closing costs.
What happens if I refinance?
A refinance of the first mortgage triggers repayment of the HomeStart second lien. You would need enough equity to clear it or to arrange subordination, so factor that in if you expect to refinance.
Sources
- Maryland Mortgage Program — Product Matrix dated 7/24/2026 (HomeStart 6% DPA loan for borrowers at or below 50% AMI, zero percent deferred repayable structure, Partner Match not available, external assistance permitted, minimum credit score and maximum debt-to-income by loan type and score band, first-time homebuyer requirement and exceptions).
- Maryland Mortgage Program — 1st Time Advantage product page (HomeStart as an assistance option within the product family, repayment triggers, homebuyer education requirement).
- Maryland Mortgage Program — Eligibility (first-time homebuyer definition and three-year rule, Targeted Area and veteran exceptions, household income counted across members aged 18 and over, primary residence occupancy).
- Maryland Mortgage Program — Maryland SmartBuy 3.0 fact sheet updated 06/1/2026 (the 6% assistance option restricted to borrowers at or below 50% AMI).
- Maryland Department of Housing and Community Development — program administration and the approved lender requirement.
Verified August 23, 2026 against the current MMP product matrix and program materials. Income limits, purchase price limits and product terms change. Confirm current figures with an approved MMP lender before relying on anything here.
This page explains how Maryland HomeStart generally works. It does not determine individual eligibility, is not a commitment to lend, and is not a Loan Estimate. The assistance figures shown are arithmetic illustrations, not quotes. 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.