Down payment assistanceMaryland
Maryland Mortgage Program 1st Time Advantage 3%, 4% and 5% Loans
3%, 4% or 5% of your first mortgage amount as a 0% deferred second loan
You pick a tier. The state lends you 3%, 4% or 5% of your first mortgage amount as a second loan with no interest and no monthly payment for up to 30 years. The higher the tier, the higher the rate on your first mortgage. The second loan is due when you sell, transfer, refinance, or pay off the first mortgage. It is not forgiven. Any amount beyond your down payment and closing costs goes to principal.
Funding was available the last time we checked.
Ongoing state program offered through MMP approved lenders.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- 3%, 4% or 5% of your first mortgage amount as a 0% deferred second loan
- Type of help
- Deferred loan
- 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
- Price limit
- Yes, see below
- Minimum credit score
- 640
- 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% on the second loan
- Monthly payment: None
- When you would repay: Due in full when the first mortgage ends: sale, transfer, refinance, or payoff of the first mortgage
Who qualifies
- First-time buyers, with exceptions. First-time means no ownership interest in a principal residence in the last 3 years. MMP waives this if you buy in a Targeted Area or you are an honorably discharged veteran using the one-time exemption. You cannot own any other real property at closing.
- Income. The standard MMP county income table applies (effective 2026-06-24), by household size. See the full 24-jurisdiction table on the MMP 1st Time Advantage 6000 page. Examples: $140,759 for 1 to 2 people and $161,873 for 3 or more in Anne Arundel, Baltimore, Carroll, Harford and Howard counties; $199,320 and $232,540 in Montgomery, Prince George's, Frederick and Charles.
- Price. Standard MMP maximum acquisition cost by county (effective 2026-06-24), for example $782,118 in the Baltimore metro counties and $1,306,974 in Montgomery and Prince George's. The first mortgage cannot exceed $832,750.
- Property types: Single-family detached, Townhouse, Condo, Modular home. Must be your primary residence.
- Principal residence only. Liquid assets over 20% of the purchase price trigger an asset test.
- Available with FHA, VA, USDA and conventional first mortgages.
- Partner Match is not available on the percentage tiers. Employer, builder or nonprofit help can still be layered if all guidelines are met, but MMP will not match it.
Income limits below are the shared table published for MMP 1st Time Advantage 6000, which this program uses too.
| Area | 1-2 people | 3+ people |
|---|---|---|
| Allegany County | $164,520 | $191,940 |
| Anne Arundel County | $140,759 | $161,873 |
| Baltimore City | $164,520 | $191,940 |
| Baltimore County | $140,759 | $161,873 |
| Calvert County | $190,320 | $222,040 |
| Caroline County | $164,520 | $191,940 |
| Carroll County | $140,759 | $161,873 |
| Cecil County | $137,100 | $157,665 |
| Charles County | $199,320 | $232,540 |
| Dorchester County | $164,520 | $191,940 |
| Frederick County | $199,320 | $232,540 |
| Garrett County | $164,520 | $191,940 |
| Harford County | $140,759 | $161,873 |
| Howard County | $140,759 | $161,873 |
| Kent County | $164,520 | $191,940 |
| Montgomery County | $199,320 | $232,540 |
| Prince George's County | $199,320 | $232,540 |
| Queen Anne's County | $140,759 | $161,873 |
| Somerset County | $164,520 | $191,940 |
| St. Mary's County | $141,600 | $162,840 |
| Talbot County | $137,100 | $157,665 |
| Washington County | $137,100 | $157,665 |
| Wicomico County | $137,100 | $157,665 |
| Worcester County | $137,100 | $157,665 |
How to apply
- 1Choose a lender from the MMP approved lender directory. Ask them to price the 3%, 4% and 5% tiers against the 6000 product on the same day.
- 2Finish an approved homebuyer education course within 12 months before settlement.
- 3Get pre-approved within the county income and purchase price limits, then find a home. The lender reserves the loan and locks the rate after your contract is ratified.
- 4At closing the lender funds the second loan for the tier you chose. You sign a second note and deed of trust.
Watch out for
- Each step up in assistance costs you a higher first mortgage rate for the life of the loan. On a smaller loan, the flat $6,000 product can deliver more cash at a lower rate. Run the math both ways.
- The second loan is repaid, not forgiven. On a $400,000 loan, 5% is a $20,000 payoff when you sell or refinance.
- The percentage is strict. You cannot ask for 3.5% or cap the amount.
- Rates lock at reservation, which requires a ratified contract.
The 5% tier is the pick when cash to close is the whole problem and you plan to stay a while. If you have some savings, price the 6000 product first.
Straight answers
Is the percentage based on the purchase price or the loan?
The loan. The assistance equals 3%, 4% or 5% of your MMP first mortgage amount, not the sales price.
Do I ever have to make a payment on the second loan?
Not while you keep your MMP first mortgage. It is 0% interest with payment deferred for up to 30 years. The balance is due when you sell, transfer, refinance, or pay off the first mortgage.
Can I combine the 5% loan with a county program?
Often yes. County, city, employer and nonprofit assistance can layer on top if the lender, insurer and that program allow it. You cannot combine it with another MMP assistance product or with Partner Match.
Sources
- MMP 1st Time Advantage product page (read Sep 22, 2026)
- MMP fact sheet: 1st Time Advantage 3% Loan (read Sep 22, 2026)
- MMP fact sheet: 1st Time Advantage 4% Loan (read Sep 22, 2026)
- MMP fact sheet: 1st Time Advantage 5% Loan (updated 2026-03-25) (read Sep 22, 2026)
- MMP Directive 2026-04: 2026 Income and Purchase Price Limits (read Sep 22, 2026)
- MMP fact sheet: Standard 30-Year Purchase Loans (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.