Maryland Down Payment Assistance 2026: Grants & Loans
By the AskDoss Editorial Team · Updated August 10, 2026
Maryland buyers have several down payment assistance programs that can cover most of the upfront cost of buying a home. With a statewide median price of $448,407 (Redfin, May 2026), even the 3.5% minimum down payment on an FHA loan comes to roughly $15,694 before closing costs. Between the Maryland Mortgage Program (MMP), run by the Department of Housing and Community Development (DHCD), and a range of city and county programs, you have real options for closing that gap. Here is what is actually available in 2026 and how to qualify.
This guide pairs naturally with our overview of first-time homebuyer programs and grants in 2026 and our breakdown of what credit score you need to buy a house.
State Housing Finance Agency Programs
The Maryland Mortgage Program (MMP), administered by DHCD, is Maryland’s primary source of down payment assistance. It is not one product — it is a menu of DPA options that pair with an MMP first mortgage, and which one you get depends on whether you’re a first-time or repeat buyer, and your income. The two product lines are 1st Time Advantage (first-time buyers) and Flex (repeat buyers) — they carry the identical DPA menu, just gated by buyer status rather than being different benefits. Full current terms live on MMP’s 1st Time Advantage program page.
The flat $6,000 option — 1st Time Advantage 6000 / Flex 6000
The standard flat DPA is $6,000. MMP’s own language: “1st Time Advantage 6000 … comes with a $6,000 loan for down payment and closing costs. This second lien has a zero percent interest rate, and no payments are due for the life of the first mortgage.” Repeat buyers get the identical benefit through Flex 6000. It is a deferred second lien — no monthly payment, balance due when you sell, refinance, or pay off the first mortgage.
The percentage option — 3%, 4%, or 5%
Beyond the flat $6,000, 1st Time Advantage (and the repeat-buyer Flex equivalent) also offers a percentage-based second lien: 3%, 4%, or 5% of the first mortgage amount, also 0% interest and deferred. This is a separate tier from the flat $6,000 loan, not a top-up on it — you pick one DPA structure per loan. On a median-priced $448,407 Maryland home financed near that amount, the 5% tier would run in the neighborhood of $20,000–$22,000, well above the flat $6,000 option, so it’s worth running both numbers with your lender before you assume the smaller flat amount is your ceiling.
HomeStart — 6%, but only at or below 50% AMI
The 6% benefit often attributed to 1st Time Advantage with no income restriction is actually a separate, more targeted product: HomeStart. It provides “6% of the MMP total loan amount,” at “0% interest” with a “30 year deferred” structure — but it is restricted to borrowers at or below 50% of area median income (AMI). If your household earns above 50% AMI, HomeStart is not available to you and the 3–5% percentage tier above is your ceiling. Advertising 6% with no income gate at all overstates what most buyers actually qualify for.
Partner Match — up to $2,500 in matching funds
Partner Match is easy to miss because it isn’t a DHCD product on its own — it matches contributions from an employer, builder, or nonprofit partner, up to $2,500. It’s a genuine way to stretch a DPA package further if your employer or a local nonprofit participates, but note that it is not available in combination with SmartBuy 3.0.
SmartBuy 3.0 — student debt payoff
SmartBuy 3.0 is built for buyers carrying student loan debt, but the structure is not what the maximum-benefit headline suggests. Per MMP’s SmartBuy 3.0 Fact Sheet (updated 06/01/2026), it is a “0% interest deferred Promissory Note of up to 15% of the home purchase price, not to exceed $25,000.” Two structural details matter more than the cap:
- The note is unsecured — it is not a lien on the property, unlike the other MMP second liens.
- It is forgiven over five years at 20% per year, not “repayable.” Stay five years and the entire balance is forgiven.
SmartBuy 3.0 also comes with rules that trip buyers up: the minimum student loan balance is $1,000, and the full remaining balance for at least one borrower must be paid off at closing — partial payoff is not permitted. It is generally limited to first-time homebuyers, though that requirement is waived if you’re purchasing in a designated targeted area, haven’t owned a principal residence in the past three years, or are an honorably discharged veteran. Borrowers also may not own any other real property at the time of closing. For buyers who want more depth on the underwriting mechanics: the maximum combined loan-to-value is 105%, the first mortgage is a 30-year conventional loan up to 97% LTV, and the unsecured SmartBuy note itself is excluded from the CLTV calculation since it isn’t a lien.
Before you apply: approved lender, education, and county loan limits
Every MMP program requires you to work with an approved lender and finish a HUD-approved homebuyer education course. Baltimore-area counties generally use the 2026 FHA floor loan limit of $541,287 for a single-family home. The Washington, D.C. suburb counties — Montgomery, Prince George’s, Frederick, Calvert, and Charles — are commonly described as higher-cost areas with FHA limits running above the statewide floor; confirm the exact county figure for your county against the HUD FHA county loan limit lookup before you budget, because the ceiling is set county by county and changes annually.
Local and County Down Payment Programs
Beyond the statewide MMP options, several Maryland cities and counties run their own assistance, funded through federal CDBG and HOME dollars, local housing trust funds, and nonprofits. Notable examples:
- Baltimore City — the city runs a portfolio of incentives rather than a single program:
- Buying Into Baltimore — $5,000, forgiven over five years. Requires attending a Live Baltimore “Buying Into Baltimore” event to become eligible.
- First-Time Homebuyers Incentive — $10,000 base for first-time buyers at or below 80% AMI, plus a $5,000 bonus for buyers purchasing the home they have rented for at least six months, or for buyers with a disability or a household member with a disability.
- Buy Back the Block — $15,000 to $20,000 in selected neighborhoods.
- Vacants to Value Booster — $10,000 toward a formerly vacant property.
- Baltimore City Employee Homeownership — $5,000 for city employees with at least six months’ service, with no income limit.
All Baltimore City incentives require a homeownership counseling certificate from a City-approved agency.
- Montgomery County MPDU Program — Moderately Priced Dwelling Units paired with down payment help in Montgomery County. Contact the administrator directly, since funding levels change often.
- Prince George’s County Pathway to Purchase — County-funded down payment help for eligible buyers; confirm current funding. Contact the administrator directly, since funding levels change often.
Eligibility Comparison Table
| Program | Type | Max Benefit | Min Credit Score | Who Qualifies |
|---|---|---|---|---|
| 1st Time Advantage / Flex 6000 | Deferred 0%, unsecured to first-mortgage payoff | $6,000 flat | Not published; ~640 typical lender floor | Advantage = first-time; Flex = repeat |
| 1st Time Advantage / Flex — percentage | Deferred 0% second lien | 3%, 4%, or 5% of first mortgage | Not published; ~640 typical lender floor | Advantage = first-time; Flex = repeat |
| HomeStart | Deferred 0%, 30-year | 6% of MMP loan amount | Not published; ~640 typical lender floor | ≤50% AMI only |
| Partner Match | Matching funds | Up to $2,500 | Per underlying MMP loan | Requires employer/builder/nonprofit match; not combinable with SmartBuy 3.0 |
| SmartBuy 3.0 | Unsecured 0% note, forgiven 20%/yr over 5 yrs | 15% of price, max $25,000 | Not published; ~640 typical lender floor | Generally first-time only (waivers apply); min. $1,000 student debt |
Figures reflect 2026 program terms and can change between funding rounds; confirm current amounts and income limits with an approved lender. Product pages don’t publish a hard credit-score floor — MMP’s SmartBuy sheet defers generally to “all Maryland Mortgage Program underwriting requirements, including credit score,” so treat 640 as the typical lender-quoted starting point, not an official minimum. Compare your total upfront cost using our closing-costs calculator guide.
How to Apply for Down Payment Assistance in Maryland
- Check your credit and budget. Know your score and target price; see how mortgage rates are set and the latest 2026 rate forecast.
- Find an approved lender. Down payment programs run through participating lenders, not the agency directly. Our list of top lenders for first-time buyers is a starting point.
- Complete homebuyer education. A HUD-approved course is required for MMP assistance and many local programs.
- Get pre-approved and pick your program. Your lender confirms whether you qualify for Advantage or Flex, whether HomeStart’s AMI limit applies to you, and how the assistance layers with your first mortgage. If you carry student debt, ask specifically about SmartBuy 3.0 and whether Partner Match makes more sense instead.
- Apply before you go under contract so the assistance is locked in when you make an offer.
Common Mistakes to Avoid
- Assuming all assistance is free money. Every MMP DPA option here is a deferred second lien or note — none are outright grants. SmartBuy 3.0 is forgiven over five years, and the others are due on sale, refinance, or payoff of the first mortgage.
- Assuming you automatically get 6%. That figure belongs to HomeStart, and it only applies at or below 50% AMI. Most buyers are working with the 3–5% tier or the flat $6,000.
- Skipping the education course. Missing the required class can disqualify you at the worst possible moment.
- Using a non-participating lender. Only approved lenders can originate these programs.
- Forgetting closing costs and insurance. The down payment is not the only upfront number; budget for closing costs and ongoing coverage too.
Buying near a border? Compare neighboring-state assistance: Virginia, Pennsylvania, Delaware.
Before you commit, it’s worth understanding the downside case too — our Maryland foreclosure process guide covers what happens if a loan goes into default, which matters when you’re weighing a deferred second lien against SmartBuy 3.0’s five-year forgiveness clock. For the fuller state picture, see our Maryland state hub.
Related Maryland Guides
- Learn about how Maryland property taxes work
- Learn about the Maryland Homestead Tax Credit
- Learn about Maryland transfer and recordation taxes
- Learn about first-time buyer assistance in Maryland
- Learn about Maryland ground rent
- Learn about Maryland closing costs in 2026
- Learn about Maryland seller disclosure rules
- Learn about homeowner insurance in Maryland
Frequently Asked Questions
How much down payment assistance can I get in Maryland in 2026?
It depends on which MMP product you qualify for. The baseline is a flat $6,000 deferred second lien through 1st Time Advantage (first-time buyers) or Flex (repeat buyers). The same product line also offers a percentage option of 3%, 4%, or 5% of your first mortgage. If your household earns at or below 50% of area median income, HomeStart offers 6% of the loan amount instead. Add up to $2,500 more through Partner Match if an employer, builder, or nonprofit participates.
What is the difference between 1st Time Advantage and Flex loans in Maryland?
They’re the same DPA menu gated by buyer history. 1st Time Advantage is for first-time homebuyers; Flex is the equivalent product line for repeat buyers. Both offer the flat $6,000 option and the 3–5% percentage option at 0% interest, deferred until you sell, refinance, or pay off the first mortgage.
Can Maryland help me buy a home if I have student loans?
Yes. SmartBuy 3.0 is built for exactly that: a 0% interest deferred Promissory Note of up to 15% of your home’s purchase price, capped at $25,000, to pay off existing student debt at closing. It’s unsecured and forgiven at 20% per year over five years. Your student loan balance must be at least $1,000, and the full balance for at least one borrower has to be paid off — partial payoff isn’t allowed. You generally need to be a first-time buyer, though the requirement is waived for veterans, buyers in targeted areas, and anyone who hasn’t owned a home in the past three years.
How much cash do I need to buy a home in Maryland?
On the $448,407 statewide median price (Redfin, May 2026), an FHA loan’s 3.5% minimum down payment is roughly $15,694, before closing costs. MMP’s deferred second-lien options are designed to cover most or all of that figure, depending on which product you qualify for.
Do Maryland down payment loans have to be repaid?
Most of MMP’s options — the $6,000 flat loan, the 3–5% percentage tier, and HomeStart — are 0% deferred second liens: no monthly payment, with the balance due when you sell, refinance, or pay off the first mortgage. SmartBuy 3.0 works differently: it’s an unsecured note that’s forgiven at 20% per year, so it disappears entirely if you stay five years. Confirm the exact payoff terms for your product before closing.
Does it matter which Maryland county I buy in?
It can. Income limits, local programs, and FHA loan limits vary by county. The Washington, D.C. suburb counties are commonly cited as higher-cost areas with larger FHA limits than the statewide floor — check the HUD FHA limit lookup for your specific county before you budget. Baltimore-area counties generally use the standard floor.
What credit score do Maryland Mortgage Program loans require?
MMP’s product pages don’t publish an official minimum credit score — the SmartBuy 3.0 fact sheet defers generally to “all Maryland Mortgage Program underwriting requirements, including credit score.” In practice, lenders commonly quote a starting point around 640. Meeting that generally lets you apply; a higher score can improve your interest rate and product options.