CEOREALTYCHARLES EDWARDONLINE REALTY

First-Time Homebuyer Programs in Maryland — Down Payment Help and Grants

Buyer Resources

First-Time Buyer Programs in Maryland

Maryland has some of the most generous first-time homebuyer assistance programs in the country. Down payment help, student debt relief, and federal tax credits can be stacked — most buyers leave significant money on the table simply because they did not know these programs existed.

Get Pre-ApprovedSearch Homes

$30,000

Max student debt relief (SmartBuy)

$5,000

Down payment assistance available

$2,000

Annual federal tax credit (HomeCredit)

3.5%

Minimum down with FHA loan

Available Programs

Programs Available to Maryland Buyers

These programs can often be combined — a single buyer may qualify for multiple benefits simultaneously.

Maryland Department of Housing & Community Development

Maryland Mortgage Program (MMP)

Below-market 30-year fixed rates
  • The flagship state program offering competitive 30-year fixed-rate mortgages to eligible first-time buyers in Maryland.
  • Income limits vary by county — Prince George's County limits are higher than many rural counties, making it accessible for buyers in the DC metro area.
  • Purchase price limits apply and are updated annually. Most homes in Laurel, Bowie, and surrounding areas fall within the eligible range.
  • Must be a first-time buyer (no ownership interest in a primary residence in the past 3 years) or purchasing in a targeted area.
  • Requires completion of a homebuyer education course before closing.

Maryland DHCD

Maryland SmartBuy 3.0

Up to $30,000 in student debt relief
  • Designed specifically for buyers carrying student loan debt — one of the most significant barriers to homeownership for younger Maryland buyers.
  • Provides up to $30,000 (or 15% of the purchase price) to pay off student debt at closing, structured as a forgivable loan.
  • Must have at least $1,000 in outstanding student loan debt and purchase a home in Maryland.
  • The student debt payoff is forgiven over five years — stay in the home and the debt disappears.
  • Pairs with the Maryland Mortgage Program for a combined below-market rate and debt relief package.

Maryland DHCD

Maryland HomeCredit

Federal tax credit up to $2,000/year
  • A Mortgage Credit Certificate (MCC) that converts a portion of your annual mortgage interest into a dollar-for-dollar federal tax credit — not just a deduction.
  • Eligible buyers can claim up to $2,000 per year for the life of the loan, as long as the home remains their primary residence.
  • The credit reduces your federal tax liability directly, effectively lowering your monthly cost of homeownership.
  • Income and purchase price limits apply. The program is available statewide including Prince George's and Anne Arundel counties.
  • Can be combined with the Maryland Mortgage Program for maximum benefit.

Maryland DHCD

1st Time Advantage Loan

Down payment assistance up to $5,000
  • Provides down payment and closing cost assistance of up to $5,000 as a zero-interest deferred loan — no monthly payments required.
  • The assistance is repaid only when you sell, refinance, or pay off the mortgage, making it a true zero-cost bridge to homeownership.
  • Available to first-time buyers using the Maryland Mortgage Program as their primary loan.
  • Income limits apply based on household size and county. Prince George's County has among the highest income limits in the state.
  • Funds are limited and distributed on a first-come, first-served basis — apply early in your home search.

Prince George's County Government

Prince George's County Pathway to Purchase

County-specific down payment assistance
  • A county-funded program providing down payment and closing cost assistance to buyers purchasing in Prince George's County.
  • Assistance amounts and eligibility criteria are updated periodically — contact the county housing office or your agent for current terms.
  • Designed to encourage homeownership within the county and stabilize neighborhoods across Prince George's County.
  • Income limits and property location requirements apply. The home must be the buyer's primary residence.
  • Can often be layered with state programs for a combined assistance package that dramatically reduces upfront costs.

Federal Housing Administration

FHA Loan (Federal)

3.5% down with 580+ credit score
  • Not a Maryland-specific program, but the most widely used loan type for first-time buyers nationally and in Maryland.
  • Requires only 3.5% down payment with a credit score of 580 or higher. Buyers with scores between 500–579 may qualify with 10% down.
  • More flexible on debt-to-income ratios than conventional loans, making it accessible for buyers with student loans or other obligations.
  • Requires mortgage insurance premium (MIP) for the life of the loan unless you put down 10% or more.
  • Loan limits in the DC metro area (including Prince George's County) are higher than national baseline limits, accommodating mid-range home prices.
How to Apply

Steps to Access These Programs

01

Check Your Credit Score

Most Maryland programs require a minimum 640 score. Pull your free report at AnnualCreditReport.com and address any errors or derogatory marks before applying.

02

Complete Homebuyer Education

Most state programs require a HUD-approved homebuyer education course. These are available online and typically take 6–8 hours. Get this done early — it's required before closing.

03

Get Pre-Approved

Work with a lender who is approved for Maryland DHCD programs. Our preferred lenders are familiar with MMP, SmartBuy, and county assistance programs and can stack multiple benefits.

04

Start Your Home Search

With pre-approval in hand, you know exactly what you can afford. We'll show you homes that fit your budget and qualify under program purchase price limits.

05

Apply for Assistance

Your lender submits the program applications on your behalf. Timing matters — some funds are limited. Having your documents ready speeds up the process significantly.

06

Close and Move In

At settlement, your down payment assistance is applied, your student debt may be paid off, and your MCC is issued. You leave the table as a homeowner with your finances intact.

Program terms, income limits, and funding availability change annually. The information on this page is for educational purposes. Confirm current eligibility requirements with a Maryland DHCD-approved lender or the Maryland Department of Housing and Community Development directly at dhcd.maryland.gov.

Ready to Buy?

Let Us Help You Stack Every Benefit You Qualify For

We work with lenders who know these programs inside and out. We will make sure you do not leave money on the table when you buy your first Maryland home.

Talk to an AgentMeet Our Preferred Lenders

Related Resources

All Resources
Buyer GuideHome Buying Process in MarylandReadBuyer GuideTrue Cost of HomeownershipReadBuyer ResourcePreferred LendersReadBuyer GuideHome Inspection GuideReadNeighborhoodsPrince George's County NeighborhoodsReadAll GuidesMaryland Real Estate Resources HubRead