Maryland First-Time Home Buyer Programs 2026

Maryland Home Buyer Programs Compared (2026)

The Maryland Mortgage Program sells 2 product lines, 1st Time Advantage and Flex, plus specialty loans, and almost every one carries a deferred down payment loan. Here's how the state and county options compare on November 3, 2026.

Sources: MMP program pages, fact sheets and November 3, 2026 rate sheet; Maryland HomeCredit page; Prince George's County DHCD; ACDS. All checked November 3, 2026.

The pattern is clear: Maryland's state help is never free, but it's also never due monthly. It's a silent second lien you settle at sale or refinance. The forgivable money in Maryland is almost all county money, and some of it comes with long strings (15 years in Prince George's).

MMP Income and Purchase Price Limits by County (June 24, 2026)

MMP sets limits for 24 jurisdictions, split by household size (1 to 2 people, or 3 or more) and by whether the address is in a targeted area. According to MMP's Attachment III, these limits took effect June 24, 2026, and they count the income of every adult in the household, not just the borrowers.

Source: MMP, Attachment III, 2026 Income Limits and Maximum Acquisition Costs (opens in a new tab), effective June 24, 2026. Jurisdictions appear in order of their July 1, 2025 Census Bureau population estimates. MMP's maximum loan amount is $832,750, so the $1.3 million to $1.6 million price caps in the costliest counties need a large down payment to use.

Two things to notice. The limits are high: a family of three in Montgomery or Prince George's can earn $232,540 and still qualify. And the price caps in those counties are far above the $832,750 maximum MMP loan, which means the real ceiling for most buyers there is the loan limit, not the price limit.

How Far MMP Down Payment Loans Go by County

Maryland's median owner-occupied home is worth $419,900, according to the Census Bureau QuickFacts data for 2020-2024. Grantsights analysis of MMP's product terms against that figure shows the flat $6,000 loan covers just 1.4% of the state median, while the 1st Time Advantage 5% loan would be about $20,260 on an FHA loan at the median, which is more than the $14,697 a 3.5% FHA down payment requires.

Calculation: FHA base loan of 96.5% of value; 5% of that loan; FHA's 3.5% minimum down payment from HUD's loans page (opens in a new tab). MMP's 5% fact sheet (updated March 25, 2026) says any DPA above actual down payment and closing costs is applied to principal, so you won't get cash back.

The flat $6,000 product made sense when Maryland homes cost less. On a median-priced home in 2026 it doesn't cover half of an FHA down payment anywhere except Baltimore City. The percentage products scale up, but as the next section shows, they cost more in interest.

Local Help in Prince George's, Montgomery, Baltimore, Anne Arundel and Howard

Maryland's 5 largest local programs give far more than the state does, with caps between $30,000 and $50,000, and each has its own forgiveness clock.

Prince George's County: up to $50,000 or $30,000

According to Prince George's County's Pathway to Purchase page (opens in a new tab), the county's flagship program provides up to $50,000 as a 0% deferred loan to first-time buyers (no home in 3 years) at or below 80% of area median income. There's no forgiveness in years 1 to 5; after that, it's forgiven 10% a year for 10 years, so it's fully gone only after 15 years of living there. Price caps are $448,000 for resale homes and $485,000 for new construction, and an 8-hour homebuyer course is required. The county reports awarding more than $1.2 million to 33 buyers in fiscal 2026.

From July 1, 2026, the county also offers the Homeownership Equity Program: up to $30,000, forgiven 20% a year over 5 years, for households at or under 120% of area median income buying inside the Capital Beltway, with a $1,000 minimum buyer contribution and no price limit. A third option, the Critical Workforce Housing Assistance Program, targets essential workers. You can't apply to any of the three directly; an approved lender applies for you.

Montgomery County: up to $50,000, nearly out

The Montgomery Homeownership Program (opens in a new tab) pairs an MMP first mortgage with a 0% deferred second loan of up to $50,000, capped at 40% of household income and due on sale, refinance, transfer or after 30 years. County employees can use MEDPAL, a $50,000 loan forgiven at 30 years. MMP's rate sheet for November 3, 2026 says the MHP has only a partial (0.30) reservation remaining and MEDPAL 5.5, and both are closed in Lender Online; lenders must email DHCD to ask.

Baltimore City: incentives with posted balances

Baltimore City DHCD's Homeownership Incentives page (opens in a new tab) is unusually transparent. As of November 2, 2026, it showed $483,206 left in the First-Time Homebuyers Incentive, which can cover half of the required down payment, gap funding and a rate buydown of up to 2.5% for buyers at or under 80% of area median income. It also listed 59 Buying Into Baltimore awards ($5,000 by lottery after a Live Baltimore trolley tour), 78 Live Near Your Work incentives (the city matches employer contributions of $1,000 to $2,500), 73 City employee awards ($5,000 or $10,000) and 48 Vacants to Value Boosters ($10,000). Most are loans forgiven after 5 years; Live Near Your Work is a true grant. You need City-approved counseling within a year before buying, $1,000 of your own money, and an application at least 30 days before settlement.

Anne Arundel County: up to $50,000 deferred

Arundel Community Development Services' Mortgage Assistance Program (opens in a new tab) lends up to $50,000 at 0%, deferred 30 years, due on sale or transfer, to first-time buyers who've finished ACDS's 8-hour counseling program. Income limits effective June 1, 2026 are $93,500 for 1 person, $106,813 for 2, $120,188 for 3 and $133,500 for 4. You must contribute 1% of the price yourself. ACDS warns its first counseling class is booked 6 to 8 weeks ahead and the program takes 2 to 4 months to finish, so start well before you shop.

Howard County: up to $40,000

Howard County's Settlement/Downpayment Loan Program (opens in a new tab) offers deferred loans at 2 points below your first mortgage rate (capped at 3%), due on resale, refinance or default. The packet updated May 1, 2026 lists the HomeStarter loan at up to $40,000 (income up to $85,450 for 2 people) with partial forgiveness at 5, 10 and 15 years, HomeSteader up to $25,000 and DreamMaker up to $15,000. The county says funds "are currently available" on a first-come, first-served basis.

Grantsights couldn't open Baltimore County's homeownership pages on November 3, 2026, so its settlement expense program isn't covered here; call the county's housing office before counting on it.

If you work in Washington and could live on either side of the line, compare the District's much larger HPAP loan in our DC first-time home buyer guide and Virginia Housing's true grant in our Virginia first-time home buyer guide.

FHA, VA and USDA Loans Through MMP

MMP lends through 4 loan types, and its standard fact sheet sets a 640 minimum score for FHA, VA and USDA loans. These federal loans are the base under most 1st Time Advantage and Flex products.

• FHA: MMP caps the FHA base loan at 96.5% of the lower of price or appraised value, which matches the 3.5% down payment HUD lists on its loans page (opens in a new tab).
• VA: generally no down payment, per the VA purchase loan page (opens in a new tab). MMP waives its first-time buyer rule once for veterans using the exemption.
• USDA guaranteed loans: for rural addresses with household income up to 115% of median, per USDA Rural Development (opens in a new tab). MMP uses the lower of its own income limit or USDA's for these.

Our USDA housing grants guide explains USDA's direct loans and repair help in more depth.

What the Maryland Mortgage Program Doesn't Tell You

Grantsights compared MMP's product pages with its November 3, 2026 rate sheet, its fact sheets and the county pages and found 4 gaps worth knowing before you choose a product.

1. Bigger DPA means a higher rate. The product pages call 1st Time Advantage Direct "our most competitive" rate but don't show the trade. On the November 3 rate sheet, a government-backed Direct loan was 7.125% and the 5% DPA loan was 7.625%. On a $386,000 loan, that half-point costs about $132 a month, or roughly $1,580 a year, for 30 years. Over 10 years that's about $15,800 in extra payments, not far below the $19,300 the 5% loan would provide, and the $19,300 is still owed when you sell.
2. The tax credit is gone. Older lender and news pages still pitch the Maryland HomeCredit, worth 25% of yearly interest up to $2,000. MMP's own page says it's closed and won't reopen "in the immediate future."
3. Prince George's forgiveness starts later than MMP says. MMP's Pathway to Purchase page describes the county loan as decreasing 10% a year and forgiven after 10 years. The county's own page says there's no forgiveness in years 1 to 5 and full forgiveness only after 15. Rely on the county's terms.
4. Some county price limits lag the state's. Howard County's SDLP packet (May 1, 2026) lists a $683,977 CDA price limit for Howard, while MMP's June 24, 2026 table shows $782,118. Ask the county which number it will apply.

Common Mistakes and Red Flags for Maryland Buyers

Most trouble comes from 3 timing problems and 2 money problems, and all five are avoidable.

• Starting the Anne Arundel course too late. A common mistake is waiting until you've found a house. ACDS's MAP requires you to graduate from its counseling before signing a contract, and classes are booked 6 to 8 weeks out.
• Missing Baltimore's 30-day window. Baltimore City wants your incentive application at least 30 days before settlement, and checks take 10 to 15 business days after approval.
• Picking the biggest DPA by default. Buyers often underestimate how much a 0.5-point higher rate costs over a decade. Ask your lender to price both the Direct loan and the DPA product.
• Selling inside Prince George's 5-year window. If you leave in year 4, none of the Pathway to Purchase loan is forgiven.
• Paying for "access." According to the FTC's government grant scams page (opens in a new tab), a request for a fee to receive a government grant is a red flag. MMP funds come through approved lenders, and Baltimore's through its Neighborly applicant portal.

For older homes that will need repairs soon after purchase, our guide to home repair grants for low-income homeowners lists federal and local options.

How to Apply in Maryland, Step by Step

There are 6 steps, and in Anne Arundel and Baltimore City the education step has to happen months before closing.

1. Find your limits. Use the MMP table above, then check your county or city program's own (usually lower) income limit.
2. Take homebuyer education. MMP requires every borrower to finish an approved class within 12 months before settlement. If you'll use ACDS, Baltimore City or Prince George's money, take the class those programs require, which may satisfy MMP too.
3. Pick an MMP-approved lender. Use MMP's lender directory. Ask for side-by-side quotes on the Direct loan and the DPA product you're considering.
4. Layer local help. Your lender applies for Prince George's and Howard County money. Your counselor and lender apply for Baltimore's FTHIP. ACDS graduates apply to MAP directly.
5. Sign a contract under the limits. MMP needs a fully ratified contract before it reserves the loan, and Prince George's caps resale prices at $448,000.
6. Close and keep the notes. Every MMP DPA is a recorded second lien, and you'll pay it off at sale or refinance.

For example, a couple in Anne Arundel County earning $95,000 buying a $400,000 townhouse with an FHA 1st Time Advantage 5% loan would need a $14,000 down payment (3.5%). They're well under MMP's $140,759 limit and ACDS's $106,813 limit for 2. Their FHA base loan of $386,000 would bring a 5% DPA loan of $19,300, specifically enough for the $14,000 down payment and $5,300 toward closing costs, with any excess going to principal. The catch is the rate: at the November 3 rates, the government 5% product ran half a point above the Direct loan, about $132 a month more. If ACDS's MAP can cover the same down payment, the couple could take the lower-rate Direct loan instead, so it's worth asking ACDS before choosing.

Backup Plans When Maryland Programs Fill Up or Say No

At least 2 Maryland programs were nearly out of money on November 3, 2026, Montgomery's MHP and MEDPAL, so it pays to have a backup lined up.

• If a county program is out: MMP doesn't post a funding limit for its statewide DPA products, and Montgomery buyers can still use the standard 3% to 5% products.
• If you're over a county income limit: check MMP's much higher limits, and see our HUD income limits guide for how area median income works.
• If your score is under 640: a HUD-approved counselor can help you plan. Our guide on how to apply for grants as an individual explains how to sort real offers from fake ones.
• If you need to keep renting for now: see our rental assistance programs guide.

Many county programs in Maryland are funded with federal HOME money; our HUD HOME program guide explains how those dollars reach local agencies.

If you'd like a quick way to see which official programs fit your situation, the free eligibility checker points you to the right official routes. It's a pointer to official programs, not a source of grant money, and it won't apply for you.

Sources

• Maryland Mortgage Program, Down Payment Assistance (opens in a new tab), MMP 1st Time Advantage (opens in a new tab), MMP Flex Loans (opens in a new tab), Maryland SmartBuy (opens in a new tab), First Homes for First Responders and Teachers (opens in a new tab) and Partner Match (opens in a new tab) (checked November 3, 2026)
• Maryland Mortgage Program, Loan Eligibility (opens in a new tab) and Homebuyer Education (opens in a new tab)
• Maryland Mortgage Program, Attachment III: 2026 Income Limits and Maximum Acquisition Costs (opens in a new tab) (effective June 24, 2026)
• Maryland Mortgage Program, Interest rates and reservation notices (opens in a new tab) (10:00 AM, November 3, 2026)
• Maryland Mortgage Program, Standard 30-Year Purchase Loans Fact Sheet (opens in a new tab) (updated January 3, 2024) and 1st Time Advantage 5% Loan Fact Sheet (opens in a new tab) (updated March 25, 2026)
• Maryland Mortgage Program, Maryland HomeCredit Lender Information (opens in a new tab) (closure notice)
• Maryland Mortgage Program, Montgomery County Specialty Products (opens in a new tab) and Pathway to Purchase in Prince George's County (opens in a new tab)
• Prince George's County DHCD, First Time Home Buyers Assistance Programs (opens in a new tab), Pathway to Purchase (opens in a new tab) and Homeownership Equity Program (opens in a new tab)
• Baltimore City DHCD, Homeownership Incentives (opens in a new tab) (remaining funds as of November 2, 2026)
• Arundel Community Development Services, Mortgage Assistance Program (opens in a new tab) (income limits effective June 1, 2026)
• Howard County DHCD, Settlement/Downpayment Loan Program (opens in a new tab) and SDLP Information Packet (opens in a new tab) (Rev. May 1, 2026)
• HUD, Loans (FHA) (opens in a new tab)
• VA, VA purchase loan (opens in a new tab)
• USDA Rural Development guaranteed loan rules (opens in a new tab), as they apply to buyers in Maryland
• U.S. Census Bureau, QuickFacts: Maryland and selected counties (opens in a new tab) and Howard, Frederick, Harford, Charles and Carroll counties (opens in a new tab) (median value of owner-occupied homes, 2020-2024; population estimates July 1, 2025)
• FTC, Government Grant Scams (opens in a new tab)