Down payment assistanceMaryland
Howard County Settlement Downpayment Loan Program (SDLP)
Up to $40,000 (HomeStarter); $25,000, $15,000, or $4,300 under the other loan types
A deferred second loan from the county. No monthly payment. Interest runs at 2% under your first mortgage rate, never more than 3%, and the whole balance is due when you sell, refinance, or default. The HomeStarter loan forgives part of the balance the longer you stay.
Money is still available but going fast. Apply soon.
Funds are available but limited and 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
- Up to $40,000 (HomeStarter); $25,000, $15,000, or $4,300 under the other loan types
- Type of help
- Deferred loan
- Where
- Howard County
- Run by
- Howard County Department of Housing and Community Development (DHCD)
- First-time buyer
- First-time buyers, with exceptions
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Homebuyer education
- Required
- Your own funds
- At least $1,000
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: 2% below your first mortgage rate, max 3% (Workforce Initiative: 0%)
- Monthly payment: None
- Forgiveness: HomeStarter only: 10% of principal and interest forgiven after 5 years as your primary residence, 20% after 10, 30% after 15. Workforce Initiative: principal drops 10% for each year you keep working full time in Howard County. Other loan types are not forgiven.
- When you would repay: Sale of the home, refinance, or default. The full deferred balance plus accrued interest is due.
Who qualifies
- First-time buyers, with exceptions. First-time status is required for HomeStarter, HomeSteader, and DreamMaker loans. It is not required for the Revitalization loan or the Workforce Initiative loan.
- Income. Limits effective 2026-05-01 and change each January. Table shows the DreamMaker tier (100% of Howard County median, $15,000 loan). HomeStarter ($40,000) uses 80% of the Baltimore region median: $74,800 for 1 person up to $141,000 for 8 or more. HomeSteader ($25,000) uses 80% of Howard median: $82,310 for 1 up to $155,213. Revitalization and Workforce Initiative use 110% of Howard median: $113,177 for 1 up to $213,418.
- Price. Purchase price up to $683,977, the state CDA limit for Howard County (as posted 2026-05-01).
- You need at least $1,000 of your own money toward settlement or down payment plus one month's full mortgage payment in savings. Savings above two months of reserves must be used before the county lends.
- Your first mortgage must be fixed rate with a term of at least 20 years (15 for the Revitalization loan). Back-end debt ratio no higher than 45%.
- Loan use is limited: HomeStarter covers settlement costs plus down payment up to 10% of the price; HomeSteader and DreamMaker cover settlement costs plus the minimum down payment (3.5% FHA or up to 5% conventional).
- Revitalization loans are only for homes pending foreclosure or foreclosed in ZIP codes 21045 or 20723.
- Workforce Initiative loans pay the buyer's half of transfer and recordation taxes and require a household member who works full time in Howard County.
| Area | 1 person | 2 people | 3 people | 4 people | 5 people | 6 people | 7 people | 8+ people |
|---|---|---|---|---|---|---|---|---|
| Howard County | $102,888 | $117,585 | $132,284 | $146,982 | $158,740 | $170,499 | $182,258 | $194,016 |
How to apply
- 1Register for the county's homebuyer education workshop (a 6-hour group class plus 2 hours of one-on-one counseling). The certificate must be in hand before you close, and the county runs one workshop a month, so sign up early.
- 2Get approved for a fixed-rate first mortgage and tell your lender you want to use SDLP. Your lender, not you, submits the county package.
- 3Go under contract. Once your first mortgage is approved, the lender reserves SDLP funds with DHCD and submits the documents and approval letter.
- 4Make sure the complete SDLP package reaches the county at least 9 business days before closing.
Watch out for
- Funds are first come, first served and limited. The county says availability is not guaranteed. Have your lender confirm before you count on it.
- This loan carries interest that accrues while deferred, unlike 0% programs. The balance grows until you sell or refinance.
- Only HomeStarter has any forgiveness, and only in steps at years 5, 10, and 15. The other loan types are repaid in full.
- The workshop calendar is thin: as of 2026-09-22 the county listed sessions on September 26, October 24, November 21, and December 12. Do not wait until you are under contract.
- Nine business days is the minimum. A rushed contract can miss the window.
The HomeStarter tier is the one to chase if your income fits under the Baltimore region 80% line. Otherwise compare the interest cost here against a 0% state option before you decide.
Straight answers
Is the SDLP loan forgiven?
Mostly no. Only the HomeStarter loan forgives part of the balance: 10% after 5 years, 20% after 10, and 30% after 15 as your primary residence. The rest is due when you sell, refinance, or default. The Workforce Initiative loan reduces 10% per year of full-time work in the county.
What interest rate will I pay?
Two percent below your first mortgage rate, capped at 3%. If your first mortgage is 6.5%, the SDLP rate is 3%. Interest accrues and is paid when the loan comes due. The Workforce Initiative loan is 0%.
Do I have to take a class?
Yes. You must complete homebuyer education before closing. The county's own workshop is 8 hours total and meets the HUD standard.
Can repeat buyers use SDLP?
Only through the Revitalization loan (foreclosure homes in 21045 or 20723) or the Workforce Initiative loan. The three main loan types require first-time status.
Sources
- Howard County DHCD Settlement Downpayment Loan Program page (read Sep 22, 2026)
- SDLP Information Packet, revised 2026-05-01 (income limits, loan products, process) (read Sep 22, 2026)
- Howard County DHCD Homebuyer Education page (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.