First-Time Homebuyer Programs in Maryland: Grants, DPA & Zero-Down Options (2026)

Maryland has one of the strongest stacks of first-time homebuyer programs in the Mid-Atlantic — and most buyers never hear about them until they talk to a broker instead of a bank. Between the Maryland Mortgage Program (MMP) down payment assistance, county-level grants in Montgomery and Prince George's, and zero-down FHA and VA options, a Maryland buyer who does the homework can close on a home with far less cash than the 20%-down myth suggests. As a broker licensed in Maryland, we shop every program available to Maryland buyers, so here is the full landscape for 2026.

What Counts as a First-Time Homebuyer in Maryland?

Most Maryland programs follow the HUD definition: you have not owned a home as your primary residence in the past three years. If you sold a home more than three years ago and have been renting since, you qualify as a first-time buyer again. The Maryland Mortgage Program also waives the first-time requirement for qualifying veterans and for buyers purchasing in targeted areas — census tracts where the state actively encourages homeownership.

The Maryland Mortgage Program (MMP)

The Maryland Mortgage Program, run by the Department of Housing and Community Development, is the state's flagship first-time buyer program. It pairs a competitive first mortgage with down payment and closing-cost assistance, and it is available statewide through approved lenders — including us.

• First mortgage with a below-market, competitive rate
• Down payment assistance layered on top (amounts vary by product)
• Income limits vary by county and household size — generous in high-cost counties
• First-time buyer requirement (waived in targeted areas and for qualifying veterans)
• Homebuyer education required — we help you complete it

MMP Down Payment Assistance Products

Within the Maryland Mortgage Program, several DPA options stack on top of the first mortgage:

• MMP DPA — a 0% deferred second loan forgiven over a set term, available statewide
• HomeStart — up to $10,000 in DPA for eligible buyers
• Partner Match — employers and counties contribute additional DPA on top of MMP funds
• 1st Time Advantage — competitive rate plus DPA for qualifying first-time buyers

Maryland First-Time Buyer Programs at a Glance

0% Down FHA in Maryland

United Mortgage Plus offers a 0% down FHA program with no income restrictions and acceptance of most FICO scores — a product most retail banks do not offer. It combines the FHA base loan with down payment assistance to bring a qualified buyer to closing with nothing down. If you have been told FHA requires 3.5% out of pocket, that is a bank answer, not a program answer.

Maryland County & City Programs

Beyond the statewide MMP, several Maryland counties and cities run their own assistance:

• Montgomery County — MPDU (Moderately Priced Dwelling Unit) program and Housing Opportunities Commission down payment help for income-eligible buyers
• Prince George's County — Neighborhood Stabilization Program and county-paired DPA for first-time buyers
• Howard County — Settlement Expense Loan Program (SELP) providing deferred loans for closing costs
• Anne Arundel County — Down Payment Settlement Expense Loan Program for income-eligible buyers
• Baltimore City — Buying Into Baltimore and Vacants to Value incentive programs for city purchasers

These change often and have limited funding pools, so timing matters. We track what is currently funded and confirm availability before you fall in love with a property.

Income and Purchase Price Limits

MMP income limits vary by county and household size, and they are designed so that working households in expensive DC suburbs still qualify. The limits are tied to the loan product, not a separate gate you apply through later. We confirm your eligibility up front so there are no surprises at closing.

How to Apply

1. 1Get pre-approved — we pull credit and verify income to see which programs fit
2. 2We match you to the right combination — MMP + DPA, 0% down FHA, VA, or 1% down conventional
3. 3Find a home within the program's purchase price limits
4. 4We submit the DPA and loan together — assistance is locked at the same time as approval
5. 5Close with the assistance applied to your down payment or closing costs

Common Questions

Can I combine MMP assistance with other programs?

Often yes. MMP DPA can stack with seller concessions, gift funds, and some county programs. We coordinate the stacking so nothing conflicts at closing — something a single-lender application rarely does.

Do I have to be a first-time buyer to use MMP?

Not always. If you are a qualifying veteran or buying in a targeted area, the first-time requirement is waived. We check the tract for the property you are considering.

Get Help With Your Maryland Purchase

If you are buying anywhere in Maryland — Montgomery, Prince George's, Howard, Anne Arundel, Baltimore, or the Eastern Shore — and assuming you need 20% down, stop. Between MMP assistance, 0% down FHA, VA loans, and 1% down conventional, there is almost certainly a program that fits your situation and your budget. Pre-approval with us is free, and we will tell you exactly which programs you qualify for before you tour a single house.