Buying a home in Maryland? Then you’ve probably realized how tough it is to scrape together a down payment. Mortgage assistance programs could be a game-changer, but finding the right one is another story.
The good news? Maryland has plenty of options for grants, down payment help, and loans. Whether you’re a first-time buyer or just need a little extra push, you’ll find something that fits.
Maryland Mortgage Assistance: What’s Available?
Some folks think mortgage assistance is just for struggling buyers. Not true. Even people with solid incomes can qualify for down payment assistance or lower interest rates in Maryland.
Here are some of the biggest programs:
- Maryland Mortgage Program (MMP) – Offers down payment assistance, closing cost help, and competitive interest rates.
- SmartBuy 3.0 – Helps homebuyers pay off their student loans while buying a home.
- Partner Match Program – Works with local employers and nonprofits to provide extra down payment help.
- HomeAbility – Designed for buyers with disabilities who need financial support to purchase a home.
Each program has different rules, income limits, and benefits. The trick is to find the one that fits your budget and financial situation.
Maryland Mortgage Program: The State’s Biggest Option
Most buyers in Maryland start with the Maryland Mortgage Program (MMP). This is the state’s big effort to make homeownership more affordable.
The MMP offers:
- Low-interest mortgage loans
- Up to $6,000 in down payment and closing cost assistance
- Support for first-time and repeat buyers
One of the biggest perks? Borrowers can layer MMP with other grants and assistance options. So, if one program isn’t enough, you can stack multiple solutions to make your home purchase work.
SmartBuy 3.0: Help With Student Loans
The SmartBuy program is for buyers with student loan debt. If you’ve been holding off on homeownership because of student loans, this one’s worth a look.
Here’s how it works:
- The program provides up to 15% of the home’s value to pay off student loan debt (up to $50,000).
- It applies only to move-in ready homes, not fixer-uppers.
- You have to pay off the remaining student loan balance at the time of closing.
If you’ve got student loans and want to own a home, this can wipe out a chunk of your debt while helping you buy a place.
How to Find Lenders Offering Down Payment Assistance in Maryland
Not all lenders offer these programs, so you need to find the right one.
Here’s how:
- Check the Maryland Mortgage Program website. They have an approved lender list.
- Ask local real estate agents. They know which lenders actively work with down payment assistance programs.
- Look for banks with first-time homebuyer programs. Some local and national lenders have extra incentives for Maryland buyers.
Finding the right lender matters because they handle all the paperwork for down payment programs. Some lenders specialize in these, while others don’t bother. Work with someone who knows the process inside and out.
FAQs About Maryland Mortgage Assistance
Who qualifies for Maryland mortgage assistance?
It depends on the program, but most require you to meet income limits, be a first-time buyer (some exceptions apply), and purchase an eligible home.
Can I use multiple assistance programs?
Yes! Many buyers use a combination of programs to reduce costs. For example, you might get an MMP loan and stack it with a local grant.
Do I have to pay back down payment assistance?
Some programs offer grants that don’t need repayment, while others are low-interest loans. Always check the terms.
How long does the mortgage assistance process take?
Plan for a little extra time. Some programs require additional paperwork, so starting early can keep your closing on track.
If you’re looking for more resources on homebuying, check out our blog for expert insights.