Maryland First-Time Home Buyer Programs 2026: MMP Guide

Maryland Mortgage Program Overview

The Maryland Mortgage Program (MMP) is administered by the Maryland Department of Housing and Community Development (DHCD), offering first mortgages and down payment assistance through approved lenders statewide.

MMP's product line is organized by borrower type: 1st Time Advantage for first-time buyers, Flex for repeat buyers, and specialty products for targeted areas and partner employers.

1st Time Advantage: Below-Market First Mortgage

The 1st Time Advantage loan is MMP's flagship product for first-time buyers, offering 30-year fixed-rate FHA, VA, USDA, and conventional loans at below-market rates.

First-time buyer means no ownership interest in a primary residence in the past 3 years — waived in targeted areas (which cover much of Baltimore City and rural Maryland) and for qualified veterans.

Minimum credit score is 640. Income and purchase price limits vary by county — the DC suburbs (Montgomery, Prince George's) have the highest limits. See our FHA vs conventional guide for loan-type help.

• 30-year fixed-rate FHA, VA, USDA, or conventional loans
• Below-market interest rates
• Minimum 640 credit score
• First-time buyer (waived in targeted areas and for veterans)
• Income and purchase price limits vary by county
• Can be combined with MMP DPA and Partner Match

MMP DPA: Up to $8,500 or Percentage Options

MMP down payment assistance comes in two structures. The flat Assist loan provides up to $8,500 as a 0% interest deferred second — no monthly payments, due at sale or refinance. Percentage-based options provide 3-6% of the first mortgage amount.

On a $350,000 Maryland home with an FHA loan, $8,500 covers most of the 3.5% down payment ($12,250). The 3-6% percentage options can provide more on higher-priced homes — 5% on a $350,000 loan is $17,500.

The DPA must be paired with an MMP first mortgage. Your lender will show you which structure maximizes your assistance for your loan amount.

• Flat option: up to $8,500 deferred second loan
• Percentage options: 3-6% of first mortgage amount
• 0% interest, no monthly payments
• Due at sale, refinance, or payoff
• Must pair with MMP first mortgage
• Percentage options better for higher-priced homes

Partner Match & Specialty Programs

MMP Partner Match doubles your assistance when your employer, a participating community organization, or a local government contributes to your down payment. MMP matches their contribution up to $2,500 or more — effectively free extra money.

HomeAbility serves buyers with disabilities with enhanced assistance and flexible underwriting. Targeted-area products offer higher income limits and waive the first-time buyer requirement in designated census tracts.

Ask your employer's HR department whether they participate in Partner Match — many Maryland hospitals, universities, and government agencies do.

• Partner Match: MMP matches employer/community contributions
• Match up to $2,500+ on top of standard DPA
• HomeAbility: enhanced assistance for buyers with disabilities
• Targeted areas: higher limits, no first-time requirement
• Check if your employer participates in Partner Match

MMP Income and Purchase Price Limits 2026

MMP income limits vary by county and household size. Here are the approximate 2026 limits for major Maryland counties — verify at MMP.Maryland.gov.

• DC suburbs (Montgomery, PG, Howard) have the highest limits
• Income limits based on total household income
• Purchase price limits apply to total price
• Targeted areas have higher limits and no first-time requirement
• Verify current limits at MMP.Maryland.gov

MMP Eligibility Requirements

To qualify for MMP programs, first-time buyer status means no ownership in a primary residence in the past 3 years — waived in targeted areas and for veterans. Flex products are open to repeat buyers.

Credit score: minimum 640 for all MMP programs. DTI: maximum 45% for conventional, up to 50% for FHA with automated approval. See our DTI ratio guide for strategies.

Occupancy: primary residence only. Homebuyer education: required for first-time buyers — HUD-approved counseling is available statewide.

• First-time buyer (past 3 years) — waived in targeted areas, for veterans, and for Flex
• Credit score: 640+ for all programs
• DTI: 45% conventional, up to 50% FHA
• Primary residence only
• Complete HUD-approved homebuyer education
• Must use an MMP-approved lender

How to Apply for MMP Programs

MMP programs are accessed through approved lenders — you cannot apply directly to DHCD.

Step 1: Find an MMP-approved lender at MMP.Maryland.gov. Step 2: Get pre-approved — the lender verifies credit, income, and program eligibility including Partner Match. Step 3: Complete homebuyer education. Step 4: Find a home within the purchase price limit. Step 5: Close — DPA funds are delivered at settlement.

• Step 1: Find an MMP-approved lender at MMP.Maryland.gov
• Step 2: Get pre-approved and confirm program eligibility
• Step 3: Complete HUD-approved homebuyer education
• Step 4: Shop within county purchase price limits
• Step 5: Close — DPA funds delivered at settlement
• Tip: Ask about Partner Match if your employer might participate

Local Maryland DPA Programs

Several Maryland jurisdictions offer additional assistance.

• Howard County's program is among the largest local programs in the state
• Local programs may stack with MMP — ask your lender
• County programs typically have lower income limits than MMP
• Funding cycles open and close — check availability early