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Pulsafi
Updated April 25, 2026

First-Time Homebuyer Programs in Maryland

Maryland's primary program is 1st Time Advantage + SmartBuy via Maryland Mortgage Program, offering up to 6% in down payment assistance. Here's how it works, who qualifies, and how to apply.

Maryland Program Overview

1st Time Advantage + SmartBuy

Administered by Maryland Mortgage Program · Visit mmp.maryland.gov for current terms
Max DPA
6%
of purchase price
Income Limit
$154,000
varies by county
DPA Form
second
mortgage or grant
Property Tax
1.05%
Maryland avg

What This Looks Like for a $350,000 Home in Maryland

Without Maryland DPA
FHA minimum down: $12,250 (3.5%)
Closing costs: ~$10,500
Cash needed: $22,750
With 1st Time Advantage + SmartBuy DPA
FHA minimum down: $12,250 (3.5%)
DPA covers: $21,000
Cash needed: $1,750
Estimates only. Actual DPA amount depends on income, purchase price, county, and program tier. Verify current terms with Maryland Mortgage Program.

How Maryland's First-Time Homebuyer Programs Work

Maryland Mortgage Program offers 1st Time Advantage + SmartBuy to qualifying first-time buyers in Maryland. Most Maryland buyers pair this with an FHA, VA, USDA, or Conventional 97 loan, using the DPA to cover the down payment, closing costs, or both. The DPA is structured as second mortgage or grant.

Eligibility requirements

Most Maryland HFA programs require: (1) you haven't owned a primary residence in the last 3 years, (2) household income under ~$154,000 (county-dependent), (3) minimum FICO score of 640-680, (4) the home is your primary residence, (5) you complete a HUD-approved homebuyer education course (typically online, ~6-8 hours).

How to apply for 1st Time Advantage + SmartBuy

You don't apply directly through Maryland Mortgage Program — you apply through one of their participating lenders. The agency lists approved lenders on their website. Get pre-approved with at least 2-3 of them: rates and fees vary, even within the same DPA program.

Combining Maryland DPA with federal loans

Pair 1st Time Advantage + SmartBuy with FHA (3.5% down, 580+ FICO) for the easiest qualifying. Veterans should use VA loans (0% down) — DPA still helps with closing costs. Rural buyers should check USDA (0% down). Buyers with 3-5% down and good credit can use Conventional 97 or HFA Preferred for lower mortgage insurance.

Other Maryland buyer benefits

Beyond DPA, ask your lender about: Mortgage Credit Certificates (MCC) for federal tax credits up to $2,000/year, employer-assisted housing programs (some Maryland employers offer additional grants), and city/county DPA stacking (cities like the largest metros in Maryland often add their own programs on top of state DPA).

Maryland homebuyer program updates
Income limit changes, new DPA programs, and rate movements — delivered to your inbox monthly.
More Maryland buyer tools
Maryland Mortgage Rates →Refi Calculator →$350,000 Mortgage Math →Mortgage Calculator →How Much Can You Afford →