Maryland’s housing market offers a wide range of choices, from higher-cost areas in Montgomery and Prince George’s counties to more affordable markets in places like Hagerstown and Harford County. For many buyers, especially first-timers, the challenge is not just finding the right home but covering the upfront costs that come with purchasing one.
Fortunately, Maryland provides a variety of down payment assistance (DPA) programs aimed at making homeownership more attainable. Some are designed specifically for first-time buyers, while others extend benefits to eligible repeat buyers as well.
This guide highlights some of the most impactful and accessible DPA programs available across the state. While it does not include every option, it focuses on those that offer meaningful assistance to qualifying buyers. We will keep this page updated as programs expand or change.
Statewide Down Payment Assistance Programs
Maryland’s statewide programs include products administered through the Maryland Mortgage Program (MMP), as well as assistance offered through participating financial institutions and nonprofit lenders. They offer affordable first mortgages paired with different types of assistance for down payments and closing costs.
1st Time Advantage $6,000 Loan
The 1st Time Advantage $6,000 Loan provides first-time buyers with a $6,000 zero-interest, deferred-payment loan that can be used for down payment and closing costs. Repayment is due when the first mortgage is paid off or refinanced, or when the home is sold or transferred.
Eligibility: Applicants must be first-time homebuyers, meet MMP’s purchase price and income limits by county, complete homebuyer education, and occupy the home as a primary residence.
MMP Flex 6000
The MMP Flex 6000 offers a $6,000 zero-interest deferred loan that works for both first-time and repeat buyers. Repayment is due when the first mortgage is paid off or refinanced, or when the home is sold or transferred.
Eligibility: Buyers must meet MMP income and purchase price limits, complete homebuyer education, occupy the home as a primary residence, and own no other real property at closing.
HomeAbility Program
The HomeAbility Program pairs a conventional first mortgage with a 0% deferred second mortgage for down payment and closing costs. The second mortgage can equal up to 25% of the purchase price, capped at $45,000, with combined financing limited to 105% of the purchase price.
Eligibility: At least one borrower must have a disability or be the resident guardian and principal caregiver of an immediate family member with a disability. Combined borrower income cannot exceed 80% of AMI, and the household must also satisfy standard MMP income limits.
Maryland SmartBuy 3.0
The SmartBuy 3.0 Program helps eligible buyers pay off qualifying student loan debt at closing with assistance equal to up to 15% of the purchase price, capped at $25,000. The 0% loan is fully forgiven after five years of owner occupancy, and eligible buyers may combine it with certain MMP down payment assistance options.
Eligibility: Buyers must have at least $1,000 in student loan debt, pay off the full qualifying balance for at least one borrower at closing, have a minimum 720 credit score, use an approved SmartBuy lender, and meet standard MMP requirements.
FHLBank Atlanta First-Time Homebuyer Product
The FHLBank Atlanta First-Time Homebuyer Product provides up to $17,500 toward down payment and closing costs through participating FHLBank Atlanta member financial institutions. The subsidy is subject to a five-year retention agreement and may be recaptured after an early sale, transfer, or refinance.
Eligibility: Buyers must be first-time homebuyers, earn no more than 80% of AMI, contribute at least $1,000 toward the purchase, complete required counseling, and occupy the home as a primary residence.
FHLBank Atlanta Community Partners Product
The FHLBank Atlanta Community Partners Product provides up to $20,000 toward down payment and closing costs through participating member financial institutions. The subsidy is subject to a five-year retention agreement and may be recaptured after an early sale, transfer, or refinance.
Eligibility: Buyers must earn no more than 80% of AMI and qualify through an eligible public-service, education, healthcare, military, veteran, or surviving-spouse category. First-time and repeat buyers may qualify.
Homes by CFE
The Homes by CFE program offers a second mortgage of up to 20% of the purchase price, capped at $60,000. No payments are required for five years; regular principal-and-interest payments begin after that point, with a 30-year total term.
Eligibility: Buyers must be first-time homebuyers using a conventional first mortgage. The primary borrower must identify as Black/African American or Hispanic/Latino, household income must be below 120% of median family income, and the home must be in Baltimore City, Baltimore County, Prince George’s County, or Charles County.
Down Payment Assistance Programs by County
Several Maryland counties layer on their own assistance in addition to statewide programs.
Montgomery Homeownership Program
This Montgomery Homeownership Program offers a loan up to 40% of the buyer’s qualifying income, capped at $50,000, for down payment and closing costs. The loan is 0% interest and deferred until sale, refinance, transfer, or 30 years.
Eligibility: Buyers must be approved for an MMP mortgage, purchase within Montgomery County, and meet county-specific income limits.
Prince George’s County Pathway to Purchase
Pathway to Purchase provides up to $50,000 in down payment and closing cost assistance as a 0% deferred second mortgage. No assistance is forgiven during the first five years; 10% is then forgiven annually over the next 10 years.
Eligibility: Buyers must be first-time homebuyers, purchase within Prince George’s County, earn no more than 80% of AMI, complete an eight-hour homebuyer education course, and stay within purchase price caps of $448,000 for resale homes or $485,000 for new construction.
Prince George’s County Critical Workforce Housing Assistance Program
The Critical Workforce Housing Assistance Program provides the lesser of $50,000 or 25% of the purchase price through a 0% deferred second mortgage. The loan is forgiven 10% per year over 10 years.
Eligibility: Buyers must be first-time homebuyers, earn no more than 120% of AMI, and work full time in an eligible Prince George’s County education, healthcare, public-safety, or emergency-response position.
Prince George’s County Homeownership Equity Program
The Homeownership Equity Program provides up to $30,000 through a 0% deferred second mortgage. The loan is forgiven 20% per year over five years.
Eligibility: Buyers must earn no more than 120% of AMI, contribute at least $1,000, complete homebuyer education, use an approved lender, and purchase an eligible home inside I-495.
Anne Arundel Mortgage Assistance Program (MAP)
The Anne Arundel Mortgage Assistance Program (MAP) offers up to $50,000 in deferred loans for down payment and closing costs, at 0% interest. Repayment is due if the home is sold or transferred.
Eligibility: Buyers must be first-time homebuyers, purchase within Anne Arundel County, earn no more than 100% of AMI, and complete ACDS homeownership counseling before entering a purchase contract.
Howard County Settlement Downpayment Loan Program (SDLP)
The Howard County Settlement Downpayment Loan Program (SDLP) includes five assistance tiers ranging from $4,300 to $40,000. Most tiers use deferred low-interest second mortgages, while the Workforce Initiative is a 0% loan with 10% forgiven annually and HomeStarter offers partial forgiveness at specified milestones.
Eligibility: Buyers must purchase in Howard County, meet the applicable tier’s income and first-time-buyer rules, contribute at least $1,000 plus one month’s mortgage payment from personal funds, and stay within the current $683,977 purchase price limit.
Down Payment Assistance Programs by City
Several cities across Maryland offer incentives tailored to local buyers.
Baltimore City First-Time Homebuyers Incentive Program (FTHIP)
The Baltimore City First-Time Homebuyers Incentive Program (FTHIP) typically provides $10,000 to $20,000 or more in down payment and closing cost assistance through a five-year forgivable loan. The award is based on household income, closing costs, mortgage payment, and home price.
Eligibility: Buyers must be first-time homebuyers, purchase an owner-occupied residence in Baltimore City, earn no more than 80% of AMI, contribute at least $1,000, and complete City-approved counseling before making an offer.
Baltimore City Employee Homeownership Program
This Baltimore City Employee Homeownership Program gives eligible full-time Baltimore City employees $5,000 toward down payment and closing costs through a five-year forgivable loan.
Eligibility: Applicants must be permanent employees of Baltimore City or a qualified quasi-city agency, purchase in Baltimore City, contribute at least $1,000, complete approved counseling, and occupy the home as a primary residence. Income and first-time-buyer limits do not apply.
Buy Back the Block
The Buy Back the Block program provides a $15,000 purchase grant or a $20,000 purchase-and-renovation grant for qualifying Baltimore City residents buying in eligible areas.
Eligibility: Applicants must have lived at a grant-eligible Baltimore City address for at least 12 months, own no other real estate, meet the program’s income limit, contribute at least $1,000, and complete approved counseling before making an offer.
"Bowie First" Mortgage Assistance Program
The "Bowie First" Mortgage Assistance Program offers $2,000 from the city that may be matched by $2,000 through MMP, for up to $4,000 in total assistance. The city contribution carries a five-year condition and may have to be repaid if the home is sold during that period.
Eligibility: Buyers must purchase within Bowie corporate limits, contribute at least $1,000 of their own funds, complete approved counseling and inspections, and meet the program’s first-time-buyer or eligible-group requirements.
Rockville Homeownership Assistance Program
The Rockville Homeownership Assistance Program provides a 0% deferred loan equal to up to 3%, 5%, or 10% of the purchase price, or the buyer’s affordability gap if lower. Qualifying first-generation buyers may also receive an additional $10,000 forgivable lien.
Eligibility: Buyers must be first-time homebuyers, meet the applicable income tier, complete HUD-approved education, purchase within Rockville city limits, and occupy the home as a primary residence.
Gaithersburg Homebuyer Assistance Loan Program
The Gaithersburg Homebuyer Assistance Loan Program provides up to $40,000 to eligible city residents earning no more than 80% of AMI and up to $25,000 to residents earning between 81% and 120% of AMI. The assistance is a 0% deferred loan that is not forgivable.
Eligibility: Buyers must be first-time homebuyers, have a minimum 620 credit score, purchase within Gaithersburg city limits, use an MMP-approved lender, and complete HUD-approved homebuyer education.
Sold on Frederick
The Sold on Frederick program provides eligible homebuyers with an interest-free deferred loan of up to $25,000. No payments are required until the home is sold, refinanced, or no longer used as the buyer’s primary residence.
Eligibility: Buyers must purchase within the City of Frederick and complete the city’s current housing-counseling, application, and underwriting requirements.
Additional Down Payment Assistance Programs in Maryland
Here are some additional programs, separate from those already mentioned, that may be useful.
Statewide Programs
- Chenoa Fund (Nationwide program available in Maryland)
County Programs
City Programs
Understanding AMI
Reading through the list of Maryland down payment assistance program, you likely noticed a common theme: many DPA opportunities require applicants to earn no more than a set amount of area median income (AMI).
Example: You're planning to apply for a DPA program that requires you earn no more than 80% of area median income. The location where you're looking to buy has an AMI of $130,000. In this scenario, you could earn as much as $104,000 and still be eligible for assistance.
You can search for AMI by property address using Fannie Mae’s map tool.
Buying a Home in Maryland With Down Payment Assistance
Maryland offers a wide variety of down payment assistance opportunities, with support available at the state, county, and city levels. These programs can help both first-time and repeat buyers cut down on upfront costs and make purchasing a home more manageable. Be sure to follow current mortgage rates and use our loan calculators to see what fits your budget. If you are planning to buy in Maryland, taking advantage of these resources could make homeownership in Maryland far more attainable.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
