Maryland Down Payment Assistance Programs: How Much You Can Get and Who Qualifies

Maryland has more down payment assistance programs than most people realize, spread across state and county levels and designed to be stacked together. The challenge isn't finding assistance — it's knowing which programs are compatible, which income limits apply in each jurisdiction, and which ones require coordinating two simultaneous underwriting processes.

Here's the complete picture of what's available in 2026.

State Level: Maryland Mortgage Program DPA

The Maryland Mortgage Program (MMP) is the foundation. Administered by the Department of Housing and Community Development (DHCD), it provides a 30-year fixed first mortgage combined with a down payment assistance second lien.

Down payment assistance products within MMP:

Fixed $6,000 DPA: A flat $6,000 second lien at 0% interest, no monthly payments. Comes due when you sell, refinance, or pay off the primary mortgage. Available under the 1st Time Advantage track.

3%, 4%, or 5% DPA: Percentage-based second liens calculated on the first mortgage amount. More suitable for higher-priced properties where a flat $6,000 doesn't move the needle significantly.

HomeStart (6% DPA): For buyers at or below 50% of Area Median Income. The largest DPA product available through base MMP.

All MMP DPA is structured as a deferred second lien, not a grant. It's money you received but will eventually repay — just not until you exit the property.

Income limits for 2026 by county:

• Montgomery, Prince George's, Frederick Counties: $196,680 (1–2 persons)
• Anne Arundel, Baltimore, Howard, Harford Counties: $136,529 (1–2 persons)
• Washington County: $131,700 (1–2 persons)

Limits for households of 3 or more are higher in each county.

Maryland SmartBuy 3.0 (Student Loan Addition)

SmartBuy isn't traditional down payment assistance — it specifically eliminates student loan debt at closing rather than contributing to the down payment. But the effect on affordability is the same: it reduces the total cash you need to bring and improves your debt-to-income ratio.

The program pays up to 15% of the home's purchase price (capped at $25,000) directly to your student loan servicer at closing. This payment is structured as a 0% interest note that forgives over five years.

SmartBuy requires a 720 minimum credit score and the complete elimination of all student loan balances at closing. If your loans exceed $25,000, you must bring the difference in cash. Eligible buyers can stack SmartBuy with the $6,000 MMP DPA, effectively receiving up to $31,000 in combined assistance.

Prince George's County: Pathway to Purchase

The highest-dollar county program in Maryland. Pathway to Purchase provides up to $50,000 in down payment and closing cost assistance as a 0% interest deferred loan that forgives at 10% per year over 15 years.

Income limit: 80% of AMI (approximately $91,800 for a single person, $131,100 for a four-person household at current AMI levels)
Purchase price cap: $448,000 resale, $485,000 new construction
Requirement: Housing Quality Standard inspection by the county before funds release

This is not a first-mortgage-rate addition to MMP — it's a completely separate program with its own application, underwriting, and inspection requirements. You'll run two parallel processes with your lender.

Montgomery County Programs

Montgomery County's Housing Opportunities Commission runs three programs:

Revolving Closing Cost Assistance Program (RCCAP): 5% of purchase price, maximum $10,000. An amortizing loan at 5% over 10 years — it has monthly payments, unlike most DPA programs. Requires at least one borrower to work in Montgomery County.

Montgomery County Housing Assistance Fund (MCHAF): Up to $25,000 as a 0% interest deferred second mortgage. If you sell within 10 years, a pro-rata portion is repaid.

Montgomery Employee Down Payment Assistance Loan (MEDPAL): For county employees. Up to $50,000 at 0% interest, deferred until sale. Requires a minimum 1% out-of-pocket contribution from the borrower.

For non-county employees in Montgomery County, the MCHAF program at $25,000 is the primary option. For county workers, MEDPAL at $50,000 rivals Prince George's County's Pathway to Purchase in absolute dollar terms.

Baltimore City Programs

Baltimore City's assistance is fragmented across multiple programs that can be layered:

Buying Into Baltimore: $5,000 forgivable loan to buyers who attend a Live Baltimore Trolley Tour before going under contract. Forgives over five years.

First-Time Homebuyers Incentive Program (FTHIP): Up to 50% of the required down payment for buyers at or below 80% AMI. This can be substantially larger than the flat $5,000 Buying Into Baltimore grant for lower-income buyers.

City Employee Homeownership Incentive: $5,000 five-year forgivable loan for permanent Baltimore City employees.

Baltimore Fixed Pricing Program: $1 purchase price for city-owned vacant buildings, requiring $90,000+ in liquid capital for rehabilitation. Not relevant for standard first-time buyers but worth knowing exists.

Howard County: Settlement Downpayment Loan Program

Howard County's program provides deferred DPA loans that carry interest at two percentage points below the borrower's primary mortgage rate. So if your first mortgage is at 6.5%, the DPA loan charges 4.5%. It's not zero-interest, but it's substantially below market and paired with deferral until sale or refinance.

Federal USDA and VA Zero-Down Options

For buyers in USDA-eligible rural areas (much of the Eastern Shore and Western Maryland), the USDA Rural Development loan eliminates the down payment entirely — no state DPA needed for the purchase price itself. You'd still use state DPA for closing costs, which in Maryland can run $8,000–$15,000 in government taxes alone.

VA-eligible buyers can layer their zero-down VA loan with Maryland state assistance for closing costs. This is the "military stacking hack" that local lenders use: VA covers 100% of the purchase price; MMP or county grants cover the $10,000–$20,000 in Maryland transfer taxes and settlement fees.

How to Actually Access These Programs

Use a participating MMP lender: State DPA only flows through approved lenders. Not every mortgage company in Maryland can process MMP loans. Find the list at dhcd.maryland.gov.

Ask specifically about county programs: Your lender may be approved for MMP but inexperienced with PG County's Pathway to Purchase or Montgomery County's programs. Ask what county overlay programs they have processed in the last year.

Complete homebuyer education early: All MMP programs require a HUD-approved homebuyer education course. Several providers offer online courses that can be finished in a day. Complete this before you start seriously shopping so you're not racing to finish it when you go under contract.

Budget the right timeline: County programs add complexity and time. Pathway to Purchase and the HQS inspection can extend your closing timeline by 10–15 days. Build this into your offer and communicate it to the seller's agent when you make your offer.

The Maryland First-Time Home Buyer Guide includes a complete down payment assistance eligibility checklist, county-by-county comparison of available programs, and a step-by-step walkthrough for applying to multiple programs simultaneously.

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