Maryland Mortgage Programs
The Maryland Mortgage Program has some extremely generous mortgage programs with down payment assistance (DPA) and flexible qualifying guidelines to make owning a home affordable for more borrowers in Maryland. The programs include conventional and government loan options for first-time homebuyers and repeat buyers.
1st-time Advantage Programs
The 1st-Time Advantage line of programs is only available for first-time homebuyers unless they purchase in a targeted area. Maryland’s targeted areas are determined by the US Census Bureau and are areas with fewer restrictions for homebuyers using Maryland Mortgage Programs. A borrower is considered a first-time homebuyer if it has been more than three years since owning a primary residence or if they are an honorably discharged veteran who had not previously used the first-time homebuyer exemption.
- The 1st-Time Advantage Direct program does not have a down payment assistance option but does allow for external sources of DPA.
- The 1st-Time Advantage 6000 comes with $6K in DPA in the form of a zero-interest rate loan repayable only after the first mortgage ends. This program is eligible for partner match funds, taking the DPA total to potentially $8.5K.
- The 1st-Time Advantage, 3% loan, comes with a DPA loan equal to 3% of the first mortgage in a zero percent deferred loan.
- 1st Time Advantage, 4% loan, comes with a DPA loan equal to 4% of the first mortgage in a zero percent deferred second lien.
- 1st Time Advantage, 5% loan, comes with a DPA loan equal to 5% of the first mortgage in a zero percent deferred second lien.
- And HomeStart is for borrowers with income at or below 50% AMI (Area Mean Income). It comes with a 0% interest, 30-year deferred DPA loan equal to 6% of the MMP total loan amount (first lien).
MMP Flex Programs
The MMP Flex programs are designed for borrowers who are repeat homeowners. The flex programs have the following options:
The Flex Direct loan has no DPA but competitive interest rates, and it allows for external sources of DPA.
The Flex 5000 comes with a $5K loan for down payment and closing costs. The DPA loan is a zero-interest loan with no payment due until the first mortgage ends (repayment, refinance, transfer, sale).
The Flex 3% loan comes with a loan equal to 3% of the first mortgage in a zero percent deferred second lien.
Maryland Mortgage Partner Match program
Some programs listed above are eligible for the Maryland Mortgage Partner Match program for qualified borrowers. For those borrowers using the Maryland Mortgage Program’s 1st-time Advantage 6000 and Flex 6000, participating partners can provide financial assistance to borrowers who meet the criteria set by the partners, and MMP will match the partner’s contribution dollar for dollar up to $2,500. The match funds are added to the $6,000 of existing product assistance provided with the 1st-time advantage and Flex 6000 for a total of $8,500 assistance in a zero percent deferred loan. This loan is repayable when the home is sold or transferred or when the first mortgage is paid in full or refinanced.
Partner match participants include:
- Employers investing in the long-term sustainability of their workforce.
- Homebuilders and real estate developers give financial incentives to encourage buyers to purchase their properties.
- Community organizations
- Local governments
Contact your loan officer for assistance with the partner match program.
Maryland Mortgage Program also offers some specialty programs that address the needs of specific communities and homebuyer groups.
Montgomery County-specific Programs
The Montgomery Homeownership Program provides up to $25K for a second mortgage to be used for down payment and closing costs. Any funds not used for down payment and closing costs will be applied to the principal.
- May be used by any MMP-eligible borrower purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage equal to 40% of the qualifying borrower income with a maximum amount of $25,000 for down payment and closing cost assistance. Any funds not needed for down payment or closing costs will be applied to principal curtailment (no cash-out).
- Second mortgage has a zero percent interest rate and repayment is deferred until sale, refinance, transfer, or 30 years, whichever happens first.
- The minimum down payment is set by the insurer, and the second mortgage funds can be used for the borrower contribution.
Contact one of our Maryland Loan Officers to learn more!
