First-Time Homebuyer Programs in Maryland (2026): How They Work

The Maryland Mortgage Program (MMP) is the state's main first-time homebuyer program: a home loan made through participating mortgage companies, often paired with down payment help.

How the Program Works

According to the Maryland Department of Housing and Community Development (DHCD), you apply through participating mortgage companies.

• 1st Time Advantage: for first-time buyers. Choose Direct (no state assistance), 6000 (a $6,000 assistance loan), or assistance equal to 3%, 4% or 5% of the first mortgage.
• Flex: for first-time or repeat buyers, with Direct, 6000 and 3% versions.
• Specialty products: HomeStart (lower incomes), SmartBuy (student debt), HomeAbility (buyers with disabilities) and First Homes for First Responders and Teachers.

Assistance is usually a deferred second loan with no monthly payments, due when you sell, refinance or pay off the first mortgage. Partner Match can add up to $2,500 to 6000 loans when an approved partner, like an employer, contributes.

Who Qualifies

• First-time buyer: no residential property owned in the past three years. Exceptions: buying in a Targeted Area, and honorably discharged veterans using the exemption for the first time (DD-214 required).
• Limits: household income (every adult in the home) and price limits vary by county, household size and Targeted Area status. Credit score minimums apply, and liquid assets above 20% of the price may affect eligibility.
• Occupancy and education: the home must be your primary residence, and all borrowers take a HUD, Fannie Mae or Freddie Mac approved class within 12 months before settlement.

County Programs

• Montgomery County: the Montgomery Homeownership Program adds a deferred MMP second loan of up to $50,000. Its Moderately Priced Dwelling Unit (MPDU) program offers lower-priced homes to buyers who haven't owned a home in five years, meet income limits and complete three free courses.
• Prince George's County: Pathway to Purchase, run by the county's housing department, offers up to $50,000 as a deferred loan forgiven in stages, for first-time buyers at or below 80% of area median income. Price caps: $448,000 resale, $485,000 new construction.

Practical Tips

• Transfer tax break: under state law, a first-time Maryland homebuyer (never owned a principal residence in Maryland, a different test than MMP's) buying a home to live in pays no state transfer tax; the seller pays a reduced 0.25% instead of 0.5%.
• Documents: the Consumer Financial Protection Bureau suggests 30 days of pay stubs, two years of W-2s and signed tax returns, two recent account statements, down payment records, photo ID and your class certificate.

Program details, funding and limits change; confirm current figures at the time you apply. Last reviewed September 2026.

Next Steps

Take a homebuyer class early, then get a pre-approval. Contact us with questions about buying in Maryland.