Down payment assistanceMaryland
City of Frederick Homebuyer Assistance (Sold on Frederick and CPIP)
Up to $25,000 interest-free through Sold on Frederick, plus up to $5,000 through CPIP
Both city programs are zero-interest deferred loans. No monthly payment and nothing is forgiven. You repay the balance when you sell, refinance, or stop living in the home as your primary residence.
We have not confirmed current funding. Check with the administrator before you rely on it.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Up to $25,000 interest-free through Sold on Frederick, plus up to $5,000 through CPIP
- Type of help
- Deferred loan
- Where
- City of Frederick, Frederick County
- Run by
- City of Frederick Housing Counseling Office and Frederick Community Action Agency
- First-time buyer
- First-time buyers, with exceptions
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Homebuyer education
- Required
How the deferred loan works
A second loan with no interest and no payment. You repay it when you sell, refinance, or pay off the first mortgage.
- Interest: 0%
- Monthly payment: None
- When you would repay: Due when you sell, refinance, or the home is no longer your primary residence.
Who qualifies
- First-time buyers, with exceptions. CPIP is for first-time buyers who qualify for a Maryland Mortgage Program loan. The city's Sold on Frederick page says it serves City of Frederick homebuyers and does not publish a first-time rule; ask the Housing Counseling Office.
- Income. Sold on Frederick is funded by federal CDBG dollars, which carry an income limit the city applies at intake; the city did not publish the figures on its page as of 2026-09-22. CPIP follows the Maryland Mortgage Program income limits for Frederick County. Call the Housing Counseling Office at 301-600-3966 for your household's figure.
- Price. No city price cap published. CPIP buyers must fit the Maryland Mortgage Program purchase price limits for Frederick County.
- The home must be inside the City of Frederick limits.
- CPIP requires a Maryland Mortgage Program first mortgage from a participating lender. It is $2,500 from the state and $2,500 from the city.
- CPIP settlement must happen within 120 days after Frederick Community Action Agency approves your loan.
- The city says its CPIP funds are subject to income tax and FICA. Ask about tax treatment before you accept.
How to apply
- 1Register for the City of Frederick Homebuyer Education Class (two sessions, Tuesdays and Thursdays at the Trinity Building, 6040 New Design Road) and complete the one-on-one credit and budget consultation. You need the certificate for these programs, so finish before you are under contract.
- 2For CPIP, get pre-approved for a Maryland Mortgage Program loan with an approved lender, then submit the City of Frederick CPIP application through Frederick Community Action Agency (301-600-3966).
- 3For Sold on Frederick, contact the Housing Counseling Office at 301-600-3966 to confirm eligibility and current funding, and ask how the application coordinates with your lender.
- 4Get a ratified contract on a home in the city limits and give your lender and the city enough time before settlement; CPIP allows 120 days after approval.
Watch out for
- Funding for both programs is set each fiscal year and given out first come, first served. The city's pages did not show a remaining balance as of 2026-09-22, so ask before you write the offer.
- These are deferred loans, not grants. You repay the full amount when you sell or refinance.
- CPIP is tied to the Maryland Mortgage Program. If your lender is not MMP-approved or you take a different loan, CPIP is off the table.
- Sold on Frederick's public page lists the amount, the rate and the repayment trigger but not the income limit or documentation list. Get the current guidelines from the Housing Counseling Office before you rely on the $25,000.
City of Frederick buyers get a second bite: county HAP plus the city programs. The class certificate covers both, so take it early.
Straight answers
Is Sold on Frederick a grant?
No. It is an interest-free loan of up to $25,000 for down payment and closing costs, funded by federal CDBG money. No payments are due until you sell, refinance, or the home stops being your primary residence.
What is CPIP?
The Community Partners Incentive Program. The state's Maryland Mortgage Program puts up $2,500 and the City of Frederick matches $2,500 for first-time buyers using an MMP loan on a home in the city. Both pieces are 0% deferred loans repaid at sale, refinance or payoff.
Can I combine the city money with Frederick County's program?
The county says its Homebuyer Assistance Program can be combined with other programs. Ask the Housing Counseling Office and your lender to confirm the stack and the order of liens.
Sources
- City of Frederick Housing Counseling Office (Sold on Frederick loan program, homebuyer class) (read Sep 22, 2026)
- City of Frederick, Community Partners Incentive Program (read Sep 22, 2026)
- City of Frederick CPIP description and requirements (PDF) (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.