Down Payment Assistance Maryland 2026: Programs, Eligibility, and How to Apply

The biggest obstacle most first-time buyers face isn't the monthly payment — it's the upfront cost. A 3.5% down payment on a $400,000 home in Maryland is $14,000. On a $500,000 home in Northern Virginia, it's $17,500. Add closing costs, and you're looking at $25,000 to $35,000 or more that needs to be liquid before closing. For many buyers — especially those paying rent while trying to save — that number feels impossibly out of reach. Down payment assistance programs exist specifically to close that gap. In 2026, Maryland, DC, and Virginia all have active programs that can cover part or all of your down payment and in some cases your closing costs too.

What Is Down Payment Assistance?

Down payment assistance (DPA) is financial help — typically in the form of a grant, forgivable loan, or deferred second mortgage — that covers part or all of your upfront home purchase costs. DPA programs are offered by state housing finance agencies, county governments, nonprofits, and private organizations. They are specifically designed to help buyers who have steady income and can qualify for a mortgage payment but haven't yet saved enough cash for a down payment and closing costs.

It's important to distinguish DPA from gift funds. Gift funds are money given to you by a family member. DPA is a program you apply for through a participating lender, adding a second funding source to your transaction. Some DPA programs do not need to be repaid — they are forgiven after you live in the home for a set period. Others are deferred loans with no payments due until you sell or refinance.

Maryland Mortgage Program (MMP) — The State's Flagship DPA

The Maryland Mortgage Program, administered by the Maryland Department of Housing and Community Development, is the primary state-level DPA program for Maryland homebuyers in 2026. MMP works by pairing a first mortgage at a below-market interest rate with a zero-interest deferred loan for the down payment and closing costs. The deferred second mortgage has no monthly payments — it is due only when you sell, refinance, or move out of the home.

• Income limits: Varies by county and household size; typically $90,000–$155,000 for most DMV jurisdictions
• Purchase price limits: Up to $750,000 in high-cost areas including Montgomery County and DC metro
• Minimum credit score: 640 for most MMP products; 620 on select programs
• First-time buyer requirement: Must not have owned a home in the past 3 years (exceptions for target areas and veterans)
• Homebuyer education: Minimum 8-hour course required before closing
• Programs available: Partner Match (employer-matched down payment), Select (for eligible occupations), SmartBuy (for student loan holders)

TRIO Down Payment Assistance — Best Option for ITIN Borrowers

TRIO, offered through TRI Pointe Connect, is one of the most flexible DPA options available to Maryland and Virginia buyers — particularly for borrowers who don't meet traditional credit or income requirements. TRIO is structured so that the down payment assistance comes as a silent second, and the overall underwriting takes a holistic view of the borrower's creditworthiness rather than strictly applying conventional overlays.

• Accepts Tax ID (ITIN) borrowers — one of the few DPA programs that allows non-SSN qualification
• Minimum credit score: 620
• Approval rate in the 90th percentile — designed for borrowers who don't fit traditional bank guidelines
• Down payment covered: 3.5% of purchase price (FHA base)
• Available with FHA financing in Maryland, Virginia, and DC
• Income limits apply — based on area median income thresholds for the target county

Chenoa Fund — National DPA Available Across the DMV

The Chenoa Fund is a national down payment assistance program administered through CBC Mortgage Agency, a tribally chartered entity that operates in all 50 states including Maryland, DC, and Virginia. Chenoa provides a second mortgage covering either 3.5% or 5% of the purchase price — structured as either a repayable loan or a forgivable loan depending on the product you select.

The Chenoa Fund Rate Advantage program offers a forgivable second mortgage: if you make 36 consecutive on-time payments on your first mortgage, the Chenoa second is forgiven entirely. The Chenoa Edge program is a repayable second at a low interest rate, which some buyers prefer because it typically comes with a slightly lower rate on the first mortgage. Minimum credit score: 640 for most Chenoa products.

Virginia Housing DPA Programs

Virginia Housing (formerly VHDA) administers the primary DPA programs for Virginia buyers. The Down Payment Assistance Grant covers up to 2.5% of the purchase price as a non-repayable grant — no second mortgage, no repayment required, no future lien on your property. Virginia Housing also offers the SPARC loan in partnership with specific employers and nonprofits in Northern Virginia and other regions.

• Minimum credit score: 620 for FHA programs; 640 for conventional
• Income limits based on area median income — Northern Virginia limits are higher than rural Virginia
• Homebuyer education required
• Must pair with a Virginia Housing first mortgage product
• Grant does not need to be repaid as long as you occupy the home

DC HomeFirst Down Payment Assistance Program

Washington DC's Department of Housing and Community Development (DHCD) administers HomeFirst, which provides up to $202,000 in down payment and closing cost assistance to qualified DC residents. That is not a typo — in DC's high-cost market, the program provides assistance proportional to purchase prices that far exceed the national average. HomeFirst is a deferred loan with 0% interest, due when the home is sold, transferred, or no longer occupied as a primary residence. After 5 years of occupancy, 20% of the loan balance is forgiven for each subsequent year of occupancy.

Can You Combine DPA with a Non-Traditional Loan?

Most DPA programs are designed to pair with FHA first mortgages, which is why they set FHA-compatible credit score minimums (580–640). You can use down payment assistance with FHA, VA (limited programs), and in some cases conventional loans. You generally cannot combine DPA with Non-QM products like bank statement loans, DSCR loans, or no-income-verification mortgages — those are non-conforming programs not accepted by most DPA administrators. The exception is TRIO, which has its own DPA mechanism and can be used with Non-QM underwriting in select cases.

How to Apply for Down Payment Assistance in Maryland

You apply for DPA through a participating lender — not through the state or program administrator directly. Not all lenders are approved to originate state DPA programs. United Mortgage Plus is approved for multiple DPA programs in Maryland, Virginia, and DC, including the Maryland Mortgage Program, Chenoa Fund, and TRIO. Here's the general process:

1. 1Start with a pre-approval — tell your lender you want to explore DPA eligibility upfront, not after you're under contract
2. 2Confirm income and credit eligibility for the programs available in your target county
3. 3Complete the required homebuyer education course (typically 6–8 hours online; $99 or less)
4. 4Your lender submits the application to both the primary lender and the DPA program administrator simultaneously
5. 5Approval timelines are similar to standard FHA loans — typically 30 days from complete application to closing

Bottom Line

Down payment assistance is one of the most underused tools in the DC metro market. Many buyers who qualify never explore it because they assume they earn too much, don't have the right credit profile, or that the programs are only for very low-income households. The reality is that DPA programs in Maryland, Virginia, and DC cover a broad income range and pair with standard FHA and conventional loans. If you're buying your first home in the DMV, ask about DPA in your very first conversation with a lender — not after you find a house. United Mortgage Plus offers free pre-approvals and DPA eligibility analysis. Reach out before you start your home search so you know exactly what's available before you make an offer.