Down payment assistanceMaryland
Baltimore City First-Time Homebuyers Incentive Program (FTHIP)
Typically $10,000 to $20,000 or more, sized to your income, price and closing costs
The city records a second lien with no interest and no monthly payment. Stay in the home as your primary residence for five years and it is forgiven. Move out or sell early and the remaining balance comes due at closing.
Funding was available the last time we checked.
About $698,000 remained as of September 21, 2026. First come, first served.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Typically $10,000 to $20,000 or more, sized to your income, price and closing costs
- Type of help
- Forgivable loan
- Where
- Baltimore City
- Run by
- Baltimore City Department of Housing and Community Development, Office of Homeownership
- First-time buyer
- First-time buyers only
- Income limit
- Up to 80% of area median income
- Price limit
- Yes, see below
- Homebuyer education
- Required
- Your own funds
- At least $1,000
How the forgivable loan works
A second loan with no payment that is forgiven over time or after a set number of years in the home.
- Interest: 0%
- Monthly payment: None
- Forgiveness: Five-year forgivable loan. The city has described it as reducing 20% each year you live in the home as your primary residence.
- When you would repay: Sell, refinance, or stop living in the home as your primary residence before year five and the unforgiven balance is due.
Who qualifies
- First-time buyers only. First-time homebuyers only. The city checks this on the application.
- Income. Household income at or below 80% of the area median income for Baltimore City, adjusted for household size. The city links its current income chart from the incentives page. Your housing counselor confirms your tier before you apply (checked 2026-09-22).
- Price. No published price cap. Your mortgage cannot exceed the FHA limit for a single-family home, listed as $731,400 on the program page (checked 2026-09-22).
- Property types: Single-family, Townhouse, Condo. Must be your primary residence.
- Fixed-rate mortgage only. Co-signers, cash sales and owner financing are not allowed.
- The home must pass a Housing Quality Standards (HQS) inspection.
- You must live in the home as your primary residence.
How to apply
- 1Before you make an offer, complete a homeownership workshop and a one-on-one counseling session with a City-approved counseling agency. The certificate is valid for 12 months. Without it you cannot use this incentive.
- 2Get pre-approved for a fixed-rate mortgage and set aside at least $1,000 of your own money for the purchase.
- 3Find a home in Baltimore City and get a ratified contract. Ask your agent to write in enough time for the city, at least 30 days from application to settlement.
- 4Register in the city's Applicant Portal (Neighborly). Your housing counselor and your lender complete parts of the FTHIP application. You will need your title company's EIN.
- 5Settlement must be at least 30 days after you submit the application. Once approved, the city sends the check to the title company in about 10 to 15 business days.
Watch out for
- Counseling comes first. If you sign a contract before you earn the certificate, you are out for this program. This is the number one mistake on city deals.
- Funds are first come, first served. The city showed $698,233 remaining for FTHIP as of 2026-09-21. Confirm the balance the week you write an offer.
- Your award is calculated, not flat. The city describes it as 50% of the required down payment, plus GAP funding to reduce the loan balance, plus an interest rate buydown of up to 2.5%. Ask your counselor to run the city calculator.
- The city does not pay retroactively. You must apply and be approved before closing.
- Plan for the HQS inspection in your timeline. Older rowhomes sometimes need repairs before the city will fund.
This is the biggest city incentive and the one I check first for any first-time buyer under the income cap. The whole deal turns on finishing counseling before we write the offer.
Straight answers
How much will I actually get?
It depends on your income, the price, your closing costs and your monthly payment. The city describes the award as half of your required down payment, plus GAP funding, plus a rate buydown of up to 2.5%. Live Baltimore says buyers typically see $10,000 to $20,000 or more. Your housing counselor can run the city's calculator once you have a price in mind.
Is there an extra $5,000 for some buyers?
Yes. The city's Direct Homeownership Assistance Program adds $5,000 for FTHIP buyers who either buy the home they have rented and lived in for at least six months, or have a household member with a disability as defined by federal law. It can only be used together with FTHIP.
Can I combine FTHIP with Live Near Your Work or the Vacants to Value Booster?
The city lists these as separate incentives and buyers do combine them when they qualify for each. Confirm the stack with your housing counselor when you apply, since each one has its own rules.
What if I sell in year three?
The loan is forgivable over five years. The city has described the balance dropping 20% a year while you live there. Sell in year three and roughly the unforgiven share is repaid from your proceeds at closing. Your loan documents control the exact schedule.
Sources
- Baltimore City DHCD, Homeownership Incentives (funding counts as of 09/21/2026) (read Sep 22, 2026)
- Live Baltimore, First-Time Homebuyers Incentive Program (read Sep 22, 2026)
- Live Baltimore, Direct Homeownership Assistance Program ($5,000 add-on) (read Sep 22, 2026)
- Baltimore City DHCD news release describing the five-year, 20% per year forgiveness (read Sep 22, 2026)
- Live Baltimore, City-approved homeownership counseling agencies (read Sep 22, 2026)
Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.
Programs are the easy part. Timing is the hard part.
Most buyers lose assistance on a deadline, not on eligibility. Sean helps you map out the counseling, the lender conversation, and the contract dates so nothing slips.