Guides / Down Payment Assistance / Maryland

Down Payment Assistance in Maryland

Maryland does have a distinct state-level down payment assistance system: it runs through the Maryland Mortgage Program (MMP), administered by the Department of Housing and Community Development (DHCD), rather than a single named "DPA program." MMP offers several first-time-buyer loan products — 1st Time Advantage 6000/3%/4%/5% and HomeStart — that all provide 0%-interest, deferred second-mortgage assistance for down payment and closing costs, plus the SmartBuy 3.0 initiative which pairs down payment help with student loan payoff assistance (recently expanded from $20,000 to $25,000 as of DHCD's June 2026 announcement). All MMP products share core requirements: first-time-buyer status (with defined exceptions), a required homebuyer education course, minimum credit scores generally around 640 for FHA-backed products (700+ for conventional, 720 for SmartBuy), and household income/purchase price limits that vary significantly by county and household size — exact figures should be confirmed on mmp.maryland.gov's Income & Purchase Price Limits table since they are updated periodically and differ by jurisdiction.

Programs

1st Time Advantage 6000 (Maryland Mortgage Program)
Maryland Department of Housing and Community Development (DHCD) / Maryland Mortgage Program
Amount: $6,000 down payment/closing cost assistance loan, structured as a 0% interest, deferred second lien with no monthly payments (due on sale, refinance, or payoff of the first mortgage)
Type: Deferred 0%-interest second mortgage (loan, not a grant)
Must be a first-time homebuyer (or qualify for an exception, e.g., 3+ years since owning a home, purchasing in a Targeted Area, or an honorably discharged veteran using the one-time exemption with DD-214); minimum FICO 640 for FHA financing (~700 for conventional per MMP fact sheets); must complete an approved homebuyer education course; must meet MMP household income limits, which vary by county and household size (e.g., roughly $124,500–$210,980 depending on location/household size per 2026 published limits, with higher limits — e.g., $196,680 for 1-2 person and $229,460 for 3+ person households in Montgomery/Prince George's Counties — in state-designated Targeted Areas); property must meet MMP purchase price limits.
1st Time Advantage 3%/4%/5% Loans (Maryland Mortgage Program)
Maryland Department of Housing and Community Development (DHCD) / Maryland Mortgage Program
Amount: Down payment assistance loan equal to 3%, 4%, or 5% of the first mortgage amount (borrower selects the tier), as a 0% interest deferred second lien
Type: Deferred 0%-interest second mortgage (loan, not a grant)
Same core MMP eligibility as 1st Time Advantage 6000: first-time homebuyer status (or exception), minimum credit score around 640 (FHA) / ~700 (conventional) depending on product, required homebuyer education class, and county-based income and purchase price limits set by DHCD.
HomeStart (Maryland Mortgage Program)
Maryland Department of Housing and Community Development (DHCD) / Maryland Mortgage Program
Amount: Down payment assistance loan equal to 6% of the total MMP loan amount, 0% interest, deferred for 30 years
Type: Deferred 0%-interest second mortgage (loan, not a grant)
Restricted to homebuyers with household income at or below 50% of Area Median Income (AMI); must also meet standard MMP requirements (first-time buyer status or exception, credit score minimums, homebuyer education, purchase price limits).
Maryland SmartBuy 3.0 / Student Loan Debt Relief
Maryland Department of Housing and Community Development (DHCD) / Maryland Mortgage Program
Amount: Pays off up to $25,000 of the buyer's eligible student loan debt (increased from $20,000 as of a June 2026 DHCD announcement), capped at 15% of the home purchase price, combined with MMP down payment assistance; DHCD reports average total assistance (student debt payoff + down payment aid) of about $40,000 for buyers at/below 50% AMI and $30,000+ for other eligible MMP borrowers
Type: Combination of student-loan payoff assistance and down payment assistance, financed via 0%-interest deferred second lien(s)
Must be a first-time homebuyer with at least $1,000 remaining on an eligible student loan; requires a minimum credit score of 720 (higher than standard MMP products); must use conventional financing; must meet standard MMP income and purchase price limits and complete required homebuyer education.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in MarylandTransfer Tax & Closing Costs in MarylandBuyer-Agent Agreements in MarylandSeller Disclosure Laws in MarylandFind Agents in MarylandDown Payment Calculator