Maryland Homebuyers
Maryland Mortgage Program (MMP) Down Payment Help, Explained
See how MMP pairs home loans with real down payment assistance, and whether you qualify.
Get Pre-ApprovedKey Facts at a Glance
What This Means for You
Saving enough for a down payment is often the single biggest obstacle standing between Maryland renters and homeownership. The good news: the Maryland Mortgage Program (MMP) pairs home loans with down payment help that can make that gap a lot smaller. Here's what the program actually offers, who qualifies, and how to get started.
How the program works
MMP is a program of the Maryland Department of Housing and Community Development. It provides home loans to both first-time and repeat buyers across the state, and most MMP loan products come bundled with down payment assistance (DPA). Some DPA products carry extra criteria, and MMP loans are offered through MMP-approved lenders statewide, who are trained to help you choose the right loan and apply for down payment assistance. If you don't already have a lender, you can also request a loan officer referral directly from MMP.
Keep in mind that meeting MMP's eligibility criteria does not guarantee loan approval — your lender still makes the final underwriting decision.
Down Payment Assistance Options
MMP offers down payment assistance through its two main loan lines, 1st Time Advantage (for first-time buyers) and Flex (open to first-time and repeat buyers), plus a handful of specialty and local programs layered on top.
1st Time Advantage 6000 and Flex 6000
Both the 1st Time Advantage and Flex product lines offer a "6000" option: a $6,000 loan to help cover your down payment and closing costs. It's structured as a 0% second lien with no payments required for the life of your first mortgage — the balance becomes due when the first mortgage ends, whether through repayment, refinance, transfer, or sale of the home. The 6000 option is also eligible for Partner Match.
Percentage-based DPA (3%, 4%, 5%)
If you'd rather scale your assistance to your loan size, 1st Time Advantage offers DPA options equal to 3%, 4%, or 5% of your first mortgage amount, structured as a 0% deferred second lien. Flex offers a similar Flex 3% option. Note that Partner Match isn't available with the 3% products.
HomeStart
HomeStart is designed for buyers with household income at or below 50% of the area median income (AMI). It provides a 0%, 30-year deferred down payment loan equal to 6% of your total MMP loan amount.
First Homes for First Responders and Teachers
Eligible first responders and teachers can access DPA equal to 5% of their first mortgage, structured as a 0% deferred second lien.
Partner Match
When you use the 1st Time Advantage 6000 or Flex 6000, Partner Match can match assistance from an approved Partner — employers, homebuilders and developers, or community organizations and local governments — up to $2,500. It's issued as a no-interest, deferred state loan that becomes payable once your first mortgage is fully paid off.
Specialty and local programs
Beyond the core products, MMP offers several specialty options: Montgomery County Specialty Programs, Maryland SmartBuy (DPA for buyers carrying eligible student debt), FHA 203K Limited (extra financing for repairs and modernization), HomeAbility (for buyers with disabilities), and MMP-UPLIFT (for eligible UPLIFT properties, with DPA equal to 5% of the first mortgage). On top of state-level help, many Maryland counties and cities offer their own local down payment and settlement assistance, often as grants or low-interest loans.
How to Apply, Step by Step
- Complete an approved homebuyer education course (it must be HUD, Fannie Mae, or Freddie Mac approved). It's required before loan approval and recommended before you sign a purchase contract; your certificate needs to be dated within 12 months of settlement.
- Find an MMP-approved lender through the lender directory, or request a loan officer referral if you need help choosing one.
- Get pre-approved by an MMP-approved lender — this is required before you can use an MMP loan. Your lender will review your income, assets, debts, and credit before issuing a pre-approval letter.
- Work with your lender to confirm you meet the age (18+), Social Security number, and primary-residence requirements, along with the first-time buyer status or applicable exception, income and purchase price limits, and credit score minimums.
- Choose the MMP loan product and down payment assistance option that fits your situation, including whether Partner Match or a local program can stack on top.
- Submit your full application and move toward closing. Remember that eligibility doesn't guarantee approval — your lender makes the final call.
Income Limit Examples
Income and purchase price limits
Income and purchase price limits vary by location and household size — generally one to two people versus three or more — and household income counts everyone 18 and older in the home, in every form it takes (a doctor-certified pregnancy also counts as an extra household member). A few examples from the current limits:
| Area | Targeted Area | Income Limit (1–2 people) | Income Limit (3+) | Max Acquisition Cost |
|---|---|---|---|---|
| Baltimore City | Yes | $164,520 | $191,940 | $955,922 |
| Allegany County | Yes | $164,520 | $191,940 | $692,211 |
| Frederick County | Partial | $199,320 | $232,540 | $1,306,974 outside / $1,597,413 within Targeted Areas |
- Baltimore City (a Targeted Area): income limits of $164,520 (1–2 people) or $191,940 (3+), with a maximum acquisition cost of $955,922 — see what living in Reservoir Hill is like.
- Allegany County (a Targeted Area): the same income limits of $164,520 / $191,940, with a maximum acquisition cost of $692,211 — read more about the cost of living in Cumberland.
- Frederick County (partially targeted): income limits of $199,320 (1–2) or $232,540 (3+), with a maximum acquisition cost of $1,306,974 outside Targeted Areas and $1,597,413 within them — see our guide to living in Frederick.
Targeted Areas carry slightly higher income limits and don't require first-time buyer status. You can check whether a specific address falls within a Targeted Area using MMP's interactive Mapper tool.
Program details, income limits, and purchase price limits are updated periodically, so always confirm the current figures directly with MMP's official limits document before making decisions based on the numbers above.
Who Qualifies
Who This Is For
- First-time buyers — no ownership of residential property in the past three or more years — buying anywhere in Maryland
- Repeat buyers using Flex anywhere in the state, or any MMP product within a Targeted Area
- Buyers who qualify for an exception: more than three years since owning a principal residence, selling a current home before closing in a Targeted Area, or an honorably discharged veteran who hasn't used the exemption before
- Buyers 18+ with a Social Security number who plan to use the home as their primary residence
- Buyers whose household income and purchase price fall within the limits for their location and household size
- Buyers with a credit score of 640 or higher
Who It Isn't For
- Buyers who've owned a home within the past three years and don't fit a 1st Time Advantage exception, and aren't using Flex or buying in a Targeted Area
- Buyers with a credit score below 640
- Buyers whose household income or purchase price exceeds the limits for their location and household size
- Buyers purchasing a home that won't be their primary residence
- Anyone expecting eligibility alone to guarantee loan approval — your MMP-approved lender still makes the final underwriting decision
First-time buyer definition and exceptions
Under MMP's loan eligibility rules, a first-time homebuyer is someone who hasn't owned residential property in the past three or more years — and this definition can buy anywhere in Maryland. If you don't meet that definition, you may still qualify for 1st Time Advantage through an exception: it's been more than three years since you owned a principal residence, you're purchasing in a Targeted Area and plan to sell your current home before closing, or you're an honorably discharged veteran who hasn't previously used this exemption (this requires a DD-214 and the Attachment V form). If you're a veteran weighing your financing options, our quick guide to using the VA loan is a good next read, and if you're relocating on orders, see what to know before PCSing to Andrews AFB. Repeat buyers who don't fit an exception can still use Flex anywhere in the state, or any MMP product within a Targeted Area.
Credit score
The 1st Time Advantage and Flex products require a minimum credit score of 640.
FAQ
Do I have to be a first-time homebuyer to use MMP?
Not necessarily. While 1st Time Advantage generally requires first-time buyer status (no home ownership in the past three-plus years), exceptions exist for buyers who've been out of homeownership more than three years, those selling their current home before closing on a purchase in a Targeted Area, and qualifying veterans. Repeat buyers can also use the Flex product anywhere in Maryland, or any MMP product within a Targeted Area.
What's the difference between the 6000, percentage-based, and HomeStart assistance options?
The 6000 option provides a flat $6,000 toward your down payment and closing costs; the percentage-based options (3%, 4%, or 5%) scale your assistance to the size of your first mortgage; and HomeStart offers a deferred loan equal to 6% of your total MMP loan amount for buyers whose income is at or below 50% of the area median income.
Can I combine MMP down payment assistance with other help?
Yes. Partner Match can add up to $2,500 on top of a 1st Time Advantage 6000 or Flex 6000 loan when an approved employer, homebuilder, or community partner contributes matching funds. Many Maryland counties and cities also offer their own local down payment and settlement assistance that may be used alongside MMP.
Do I need to take a homebuyer education class?
Yes, it's required for all MMP purchase borrowers before loan approval, using a HUD, Fannie Mae, or Freddie Mac approved course. It's best to complete it before you sign a purchase contract, and your certificate must be dated within 12 months of settlement.
Does qualifying for MMP guarantee I'll get the loan?
No. Meeting MMP's eligibility requirements is the first step, but your MMP-approved lender still reviews your full financial picture and makes the final approval decision.
Ready to See What This Looks Like for You?
Get Pre-ApprovedThe best way to understand how MMP's down payment assistance could work for your situation is to run the numbers with someone who knows the program. Estimate your payment, and Malcolm Lawson's team can connect you with an MMP-approved lender to see which MMP loan and DPA combination fits your budget and timeline. Still deciding where to buy? Take our quick quiz to get matched with a local agent.
Malcolm Lawson, Mortgage Loan Originator | NMLS 2820509 | One Real Mortgage | NMLS 198414 | Equal Housing Opportunity