Down payment assistanceMaryland
Maryland Mortgage Program HomeStart 6% Down Payment Assistance Loan
6% of your first mortgage amount as a 0% deferred second loan, for buyers at or below 50% of area median income
HomeStart is the biggest percentage MMP offers, reserved for lower-income first-time buyers. The state lends you 6% of your first mortgage amount as a second loan with no interest and no monthly payment for up to 30 years. It comes due when you sell, transfer, refinance, or pay off the first mortgage. It is not forgiven. Extra funds beyond your down payment and closing costs are applied to your principal.
Funding was available the last time we checked.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- 6% of your first mortgage amount as a 0% deferred second loan, for buyers at or below 50% of area median income
- 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
- Up to 50% of area median income
- 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 borrowers' combined qualifying income must be at or below 50% of area median income for the county (MMP 50% AMI chart effective 2026-06-24, one figure per county regardless of household size). Examples: $67,000 in Baltimore City and the Baltimore metro counties, $82,050 in Montgomery, Prince George's, Frederick and Charles, $47,500 in Allegany, Caroline, Dorchester and Garrett. Total household income must also fit the regular MMP county table.
- 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 with HomeStart. Employer, builder or nonprofit help can layer on if all guidelines are met, but the state will not match it.
- The 6% option is also available inside Maryland SmartBuy 3.0 for student-debt buyers at or below 50% AMI.
| Area | 1-2 people | 3+ people |
|---|---|---|
| Allegany County | $47,500 | $47,500 |
| Anne Arundel County | $67,000 | $67,000 |
| Baltimore City | $67,000 | $67,000 |
| Baltimore County | $67,000 | $67,000 |
| Calvert County | $76,600 | $76,600 |
| Caroline County | $47,500 | $47,500 |
| Carroll County | $67,000 | $67,000 |
| Cecil County | $61,350 | $61,350 |
| Charles County | $82,050 | $82,050 |
| Dorchester County | $47,500 | $47,500 |
| Frederick County | $82,050 | $82,050 |
| Garrett County | $47,500 | $47,500 |
| Harford County | $67,000 | $67,000 |
| Howard County | $67,000 | $67,000 |
| Kent County | $56,000 | $56,000 |
| Montgomery County | $82,050 | $82,050 |
| Prince George's County | $82,050 | $82,050 |
| Queen Anne's County | $67,000 | $67,000 |
| Somerset County | $52,300 | $52,300 |
| St. Mary's County | $76,600 | $76,600 |
| Talbot County | $58,750 | $58,750 |
| Washington County | $50,800 | $50,800 |
| Wicomico County | $52,300 | $52,300 |
| Worcester County | $55,550 | $55,550 |
How to apply
- 1Choose a lender from the MMP approved lender directory and ask them to check your qualifying income against the 50% AMI chart for your county.
- 2Finish an approved homebuyer education course within 12 months before settlement.
- 3Get pre-approved. Because the assistance is a percentage of the loan, your lender will show you the exact second loan amount once you have a price.
- 4After your contract is ratified the lender reserves the loan and locks the rate. The 6% second loan is funded at closing.
Watch out for
- Two income tests apply: your qualifying income against the 50% AMI chart, and total household income against the regular MMP table. You need to pass both.
- The 6% is repaid when the first mortgage ends. It is not forgiven.
- The first mortgage rate on HomeStart is higher than on the Direct product. With 6% covering most of your cash to close, that trade is usually worth it, but ask to see the numbers.
- Debt-to-income ratios still have to work at 50% AMI. Homebuyer counseling early in the process helps here.
For a buyer under 50% AMI, HomeStart plus a county program is often the path from renting to owning with very little of their own cash at the table.
Straight answers
What does 50% of area median income mean in dollars?
It is a single figure per county set each year. For 2026 (effective 2026-06-24) it is $67,000 in Baltimore City and the surrounding counties and $82,050 in Montgomery, Prince George's, Frederick and Charles. MMP compares the qualifying income of the borrowers on the loan to that figure.
Do I pay the 6% back?
Yes, but only when the first mortgage ends. There is no interest and no monthly payment while you keep your MMP loan. Sell, refinance, transfer or pay it off and the second loan is due.
Can I add Partner Match or another MMP loan to HomeStart?
No. HomeStart stands alone among MMP products. You can still layer county, city, employer or nonprofit assistance if those programs and your lender allow it.
Sources
- MMP 1st Time Advantage product page (HomeStart section) (read Sep 22, 2026)
- MMP fact sheet: HomeStart 6% DPA Loan (updated 2023-08-16) (read Sep 22, 2026)
- MMP Directive 2026-06: 2026 50% and 80% Area Median Income Limits (effective 2026-06-24) (read Sep 22, 2026)
- MMP 2026 Area Median Income Limits chart (PDF) (read Sep 22, 2026)
- MMP Directive 2026-04: 2026 Income and Purchase Price Limits (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.