Posted by Paul Defgnin (NMLS ID #199791) ● September 16, 2019

Maryland First-Time Homebuyers: Down Payment Assistance Programs

maryland first-time homebuyers

This article is our second in a comprehensive series on low down payment options for purchasing a home. 

Maryland First-Time Homebuyer Down Payment & Closing Costs Assistance

For most people, the biggest obstacle that keeps them from purchasing a home is saving enough for a down payment and coming up with enough funds for closing costs.

If you have not owned a home residence within the past 3-years, then the Maryland Mortgage Program (MMP) - formerly known as CDA-DSELP (Down Payment Settlement Expense Loan Program) may just be the solution that you need.

MMP now has multiple different programs to assist eligible home buyers by offering interest rate assistance or funding a portion of their down payment and/or their closing costs.

Here are 4 programs that have gotten a lot of traction with buyers:

  • Maryland Mortgage Grant Assist - This program offers home buyers a grant equal to 4% of the value of their first mortgage. This grant is does not ever have to be paid back, and you can use this towards closing costs and down payment assistance.
  • MMP 1st Time Advantage with 3% Assistance  - This program offers home buyers a low interest rate with their first mortgage. You can also get a second loan that has no interests or payment which equals 3% of the first trust to assist with your down payment and/or your closing costs.
  • Maryland HomeCredit - This program provides eligible homebuyers a federal tax credit that they may be claimed annually. Tax credit is a reduction of the buyer’s Federal taxable liability, which is equal to 25% of the value of the mortgage interest payments, with a maximum of $2,000 paid each year for as long as the buyer keeps that loan. It disappears once the loan is refinanced, paid off, or the property is sold or transferred.
  • Maryland SmartBuy - This program pays off the homebuyer student loans during the home purchase. Previously, this program requires that the homebuyer purchase a ready-move-in home currently owned by, and available from the State of Maryland. However, effective August 6th 2018, this has changed to include any home in Maryland - not just those owned and available through the State.

These programs, and other federal and local programs, are exciting because they address major issues affecting First Time Home Buyers in Maryland who are interested purchasing their first home but are discouraged because of the lack of funds for down payment and/or closing costs. 

Contact us for more information on how to buy a home using any of these MMP programs such as interest rate assistance, grant funds, tax credit, and student loan payoffs. 


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Topics: Buying a Home, down payment assistance, low down payment home loans