Down Payment Assistance in Maryland

What is down payment assistance in Maryland?

Maryland’s home prices can run high, especially near D.C. and Baltimore, but with the right down payment assistance, homeownership here is often more attainable than buyers assume.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Chesapeake Bay to the Appalachian foothills of the west, Maryland homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Maryland or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Maryland

The Maryland Department of Housing and Community Development (DHCD) operates the Maryland Mortgage Program (MMP), the state’s housing finance program for homebuyers. MMP offers eligible borrowers first-mortgage loans and down payment assistance, including assistance available through approved partner organizations. DHCD doesn’t lend directly to buyers. Homebuyers apply through an approved participating lender, which will combine the assistance with the mortgage.

All MMP programs share a few baseline requirements:

• Be at least 18 years of age
• Have a valid social security number. U.S. citizenship is not required
• Not own another residential property
• Occupy the home they purchase as their primary residence

MMP Assistance Programs

Some of the MMP programs available to assist with final costs through this program include the following.

MMP 1st Time Advantage Loans: This program, which comes with income, credit score, and purchase price limits, offers eligible first-time homebuyers the lowest 30-year fixed interest rate available from the program for a home loan. Can be combined with a zero-percent interest, deferred loan for down payment assistance (DPA). There are number of options under the 1st Time Advantage loans:

• 1st Time Advantage Direct: No DPA available but usually offers the most competitive interest rates. External sources of DPA may be used.
• 1st Time Advantage 6000: Comes with a $6,000 loan for down payment and closing costs. This second lien has a 0% interest rate, and no payments are due for the life of the first mortgage. As soon as the first mortgage ends (repayment, refinance, transfer, sale, etc.), the second lien is due and payable. The 6000 line is eligible for additional DPA through the Partner Match Program, if applicable.
• 1st Time Advantage 3% Loan: Comes with a DPA loan equal to 3% of the first mortgage in a 0% deferred second lien.
• 1st Time Advantage 4% Loan: Comes with a DPA loan equal to 4% of the first mortgage in a 0% deferred second lien.
• 1st Time Advantage 5% Loan: Comes with a DPA loan equal to 5% of the first mortgage in a 0% deferred second lien.
• HomeStart: For borrowers with income at or below 50% AMI. Comes with a 0% interest, 30-year deferred DPA loan equal to 6% of the MMP total loan amount (first lien)

MMP Flex Loans: These are 30-year, fixed-rate home loans for Maryland first-time and repeat homebuyers. Some Flex loans come with DPA as a no-interest, deferred second loan. There are number of options under the Flex loans:

• Flex Direct: Offers the most competitive interest rate but no DPA available. Outside sources of DPA may be used.
• Flex 6000: This comes with a $6,000 loan for down payment and closing costs. The second loan has 0% interest, and no payments are due for the life of the first mortgage. As soon as the first mortgage ends (repayment, refinance, transfer, sale, etc.), the second loan is due and payable.
• Flex 35 Loan: This comes with a DPA loan equal to 3% of the first mortgage in a 0% deferred second loan.

Partner Match Programs: These programs offer additional down payment and closing cost assistance for qualified borrowers using certain MMP loans. Participating partners help borrowers who meet pre-established criteria, and the MMP matches the partner’s contribution up to a maximum of $2,500. Partners include builders, developers, employers, and community partners.

Beyond MMP’s statewide programs, several Maryland cities and counties have established their own DPA programs. Many of these can be stacked with MMP assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Baltimore down payment assistance program

Baltimore is Maryland’s largest city, known for its historic Inner Harbor, rowhouse-lined neighborhoods, and a food scene built around fresh Chesapeake Bay crab. A lower cost of living than nearby D.C., plus a strong job market in healthcare and education, makes it a smart pick for buyers wanting character and affordability close to the nation’s capital.

Baltimore down payment assistance program includes:

Buy Back the Block: This program provides up to $15,000 as a grant to buy a home, or up to $20,000 to purchase and then renovate a home. Grants are awarded to residents who purchase a home in the grant-eligible area of the city.

Program requirements include:

• Do not currently own any real estate
• Will purchase and live in a home located in the grant-eligible area as the primary residence
• Have a total household income below $144,720 or 120% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• Completion of a homeownership education course
• Must work with a program-approved lender to obtain a fixed-rate mortgage
• Must contribute at least $1,000 of your own funds

Montgomery County down payment assistance programs

Montgomery County sits just north of Washington, D.C., offering top-rated schools, leafy suburbs, and easy access to the capital’s job market. Home to communities like Bethesda, Silver Spring, and Rockville, it's a favorite for buyers wanting suburban comfort without being too far from D.C.’s opportunities. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Washington, D.C.)

Montgomery County down payment assistance programs include:

Montgomery County Homeownership Program: The program offers up to $50,000 (not to exceed 40% of the household income of the borrower) in the form of a 0% percent deferred loan. This DPA loan cannot be combined with matching funds from the DPA Partner Match Program. But it can be combined with other external assistance programs. Repayment is required if the house is sold, refinanced, transferred or at 30 years, whichever happens first.

Program requirements include:

• Must be first-time homebuyer
• Must complete homebuyer education course
• Meet all program eligibility requirements

Montgomery Employee Down Payment Assistance Loan (MEDPAL): The program provides up to $50,000 in down payment and closing cost assistance for employees of certain Montgomery County departments looking to purchase a home in the county. The second loan has a 0% interest rate and payment is deferred for the life of the first loan, or upon sale, transfer, or refinance of the first loan.

Program requirements include:

• Must be first-time homebuyer
• Must complete homebuyer education course
• Meet all program eligibility requirements

Anne Arundel County down payment assistance program

Anne Arundel County sits along the Chesapeake Bay, anchored by the historic sailing town of Annapolis and Maryland’s capitol dome. Waterfront living, easy access to both Baltimore and D.C., and a strong Navy and government job base make it a solid pick for buyers wanting coastal charm without giving up commuter convenience. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Baltimore.)

Anne Arundel down payment assistance program includes:

Mortgage Assistance: This program provides up to $50,000 as a deferred second loan to first-time homebuyers to help with down payment or closing costs assistance, as well as mortgage write-downs.

Program requirements include:

• Eligible participants must be graduates of the ACDS Homeownership Counseling Program
• Must not have a household income greater than 100% of the AMI
• Can be used in conjunction with a mortgage from the FHA and the Department of Housing and Community Development (DHCD) Maryland Mortgage Program.
• Must occupy the property as the primary residence
• Maximum purchase price of $500,000
• There are no credit score requirements for this program

Prince George’s County down payment assistance programs

Prince George’s County sits just east of Washington, D.C., offering more affordable housing than neighboring Montgomery County while staying close to the capital's job market. Home to the University of Maryland and communities like Bowie and Hyattsville, it's a strong pick for buyers wanting space, diversity, and value near D.C. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Washington, D.C.)

Prince George’s County down payment assistance programs include:

Pathway to Purchase: This program provides up to $50,000 as a 0% interest deferred second loan to qualified first-time homebuyers to help with down payment or closing costs assistance. The loan carries no monthly payments and is forgiven after the homeowner occupies the property for 15 years, at a rate of 10% per year from year six and onward. Repayment is required if the property is sold, transferred, or refinanced, or is no longer used as the primary residence.

Program requirements include:

• Must not have a household income greater than 80% of AMI
• Must occupy the property as the primary residence
• Must complete homebuyer education course
• Maximum purchase price is $485,000 for new construction, and $448,000 for resale
• There are no credit score requirements for this program

Homeownership Equity Program: This program provides up to $30,000 in down payment and closing costs assistance to income-eligible homebuyers. The funds are offered as a 0% interest deferred loan. The program specifically targets homeownership within communities located inside the Capital Beltway (I-495).

Program requirements include:

• Household income cannot exceed 120% AMI
• First-time homebuyers, county residents, county residents who are public sector workers
• Minimum $1,000 buyer contribution
• Must complete homebuyer education course
• No purchase price limits

These are the main down payment assistance programs available across Maryland. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.  

How to apply for Maryland down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at mmp.maryland.gov. For local programs, contact the relevant city or county housing office.
2. Find a participating lender. MMP programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Maryland property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Maryland down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}