Down payment assistanceMaryland
Maryland HomeCredit Program (Mortgage Credit Certificate)
Closed to new buyers. Was a federal tax credit for 25% of mortgage interest, up to $2,000 a year
A Mortgage Credit Certificate let a buyer claim 25% of the mortgage interest paid each year as a dollar-for-dollar federal income tax credit, up to $2,000 a year for the life of the loan, on top of the normal mortgage interest deduction for the rest. Maryland stopped issuing new certificates on 2020-06-19. The only activity today is re-issuing an existing certificate when that homeowner refinances, through an MCC-approved lender.
This program has ended. It is listed so you know not to count on it.
Closed to new reservations since 2020. The state does not plan to reopen it.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Closed to new buyers. Was a federal tax credit for 25% of mortgage interest, up to $2,000 a year
- Type of help
- Tax credit
- Where
- Statewide, Maryland
- Run by
- Maryland Department of Housing and Community Development, Community Development Administration (Maryland Mortgage Program)
- First-time buyer
- First-time buyers, with exceptions
- Income limit
- Yes, see below
- Homebuyer education
- Not required
How the tax credit works
A federal income tax credit tied to your mortgage interest.
- Monthly payment: None
Who qualifies
- First-time buyers, with exceptions. When it was open: no principal residence owned in the prior 3 years, waived for Targeted Area purchases and for veterans using the one-time exemption.
- Income. When it was open, the standard MMP county income and purchase price limits applied. New certificates are not available, so no current limits apply.
- Not available to new buyers. Only existing MCC holders who refinance can have their certificate re-issued (CDA fee $450, lender fee up to $350).
- A homeowner who sold within 9 years could owe a federal recapture tax; CDA reimbursed that tax on MMP-financed homes but not on MCC-only loans.
How to apply
- 1There is no application for a new Maryland HomeCredit certificate. If you already hold an MCC and are refinancing, ask an MMP lender approved for MCC re-issuance to process the re-issue with your new loan.
- 2For current tax help on a purchase, look at the MMP assistance products instead, or ask a tax professional about the standard mortgage interest deduction.
Watch out for
- Some older guides still list the Maryland MCC as an active program. It has been closed to new reservations since 2020-06-19 and MMP says it does not plan to reopen it in the immediate future.
- MMP's current product fact sheets state plainly that new MCCs are not available.
- If you hold an MCC, keep it in mind when you refinance. Re-issuing it preserves the credit; letting it lapse loses it.
Buyers still ask me about the Maryland MCC every month. It is gone. The money today is in the MMP second loans and county programs, not in a tax credit.
Straight answers
Can I still get a Maryland Mortgage Credit Certificate?
No. The Maryland HomeCredit Program closed to new reservations on 2020-06-19 (MMP Directive 2020-11) and MMP does not plan to reopen it in the immediate future.
What did HomeCredit do?
It gave eligible first-time buyers a federal tax credit worth 25% of the mortgage interest they paid each year, capped at $2,000, for as long as they lived in the home and kept the loan.
I have an existing Maryland MCC and want to refinance. What happens?
You can have the certificate re-issued so the credit continues, but the refinance and re-issue must go through an MMP lender approved for MCCs. CDA charges $450 and the lender may charge up to $350.
Sources
- Maryland HomeCredit Program Lender Information (closure notice) (read Sep 22, 2026)
- MMP fact sheet: Maryland HomeCredit (updated 2021-03-05, closure banner) (read Sep 22, 2026)
- MMP Dual Track Product Line (dated 2026-09-04): existing MCC may be re-issued, no new MCCs (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.