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 are currently active and well-funded. We will keep this page updated as programs expand or change.
Statewide Down Payment Assistance Programs
Maryland’s statewide programs are administered through the Maryland Mortgage Program (MMP). 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 only when the first mortgage is paid off, refinanced, or the home is sold.
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.
Flex $5,000 Loan
The Flex $5,000 Loan offers a $5,000 zero-interest deferred loan that works for both first-time and repeat buyers. Repayment is deferred until the home is sold, refinanced, or the mortgage is paid off.
Eligibility: Buyers must meet MMP income and purchase price limits for their county, occupy the home as a primary residence, and complete homebuyer education.
HomeAbility Program
The HomeAbility Program is designed for buyers with disabilities or those purchasing with a disabled household member. It provides a deferred loan of up to 25% of the home’s purchase price, capped at $45,000, at 0% interest.
Eligibility: Buyers must meet MMP’s HomeAbility income limits (varies by county and household size), have a documented disability or live with a disabled household member, and purchase a primary residence within Maryland.
Maryland SmartBuy 3.0
The SmartBuy 3.0 Program helps homebuyers with student loan debt by providing up to $20,000 to pay off outstanding student loans during the home purchase. The assistance is a 0% deferred loan, forgivable if you remain in the home for a set period.
Eligibility: Buyers must have at least $1,000 in student loan debt to be paid off at closing, meet MMP purchase price and income limits, and purchase a primary residence.
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 $25,000, for down payment and closing costs. The loan is 0% interest and deferred until sale, refinance, 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 $25,000 in down payment and closing cost assistance as a 0% interest deferred loan that is forgiven after 10 years of owner occupancy.
Eligibility: Buyers must be first-time homebuyers, purchase within Prince George’s County, meet income limits, and stay within purchase price caps of, in 2025, $448,000 for resale homes or $485,000 for new construction.
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 only if the home is sold, refinanced, or transferred.
Eligibility: Buyers must be first-time homebuyers, purchase within Anne Arundel County and complete homeownership counseling. Household income must not exceed 100% of the AMI.
Howard County Settlement Downpayment Loan Program (SDLP)
The Howard County Settlement Downpayment Loan Program (SDLP) offers a low-interest, deferred-payment loan for down payment and settlement costs, with amounts varying by need and program tier. The interest rate is set at 2% below the buyer’s primary mortgage rate, and repayment is due only on resale, refinance, or default.
Eligibility: Buyers must purchase in Howard County, meet income limits adjusted twice a year, contribute at least $1,000 plus one month’s mortgage payment from personal funds, and ensure the purchase price does not exceed the state’s Community Development Agency 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) provides up to $10,000 in forgivable down payment and closing cost assistance through a five-year forgivable loan.
Eligibility: Buyers must be first-time homebuyers, purchase an owner-occupied residence in Baltimore City, and meet income limits (generally up to 80% of AMI).
Baltimore City Employee Homeownership Program
This Baltimore City Employee Homeownership Program gives full-time Baltimore City employees $5,000 toward down payment and closing costs, or $10,000 for employees with at least 6 months of service or in designated high-need roles.
Eligibility: Applicants must be employed by Baltimore City or a qualified quasi-city agency, purchase in Baltimore City, and commit to occupying the home as a primary residence.
"Bowie First" Mortgage Assistance Program
The "Bowie First" Mortgage Assistance Program offers a $2,000 grant from the city, matched by $2,000 from the state, for a total of $4,000 in forgivable assistance.
Eligibility: Buyers must be first-time homebuyers purchasing in Bowie, contribute at least $1,000 of their own funds, and be teachers, persons with disabilities, City of Bowie employees, or police officers.
Gaithersburg Downpayment Assistance Program
Gaithersburg Downpayment Assistance Program provides up to $40,000 in 0%-interest deferred loans for down payment and closing costs.
Eligibility: Buyers must be first-time homebuyers, purchase in Gaithersburg city limits, meet income and purchase price caps, and may receive priority if they are teachers, city employees, police, firefighters, or veterans.
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.
