1st Time Advantage 3% Loan

1st Time Advantage 3% Loan is a deferred second loan for homebuyers in Statewide, Maryland. Maryland DHCD MMP 1st Time Advantage product with 3% deferred 0% DPA second mortgage. Bond-funded MRB first mortgage. First-time homebuyer required (waived in targeted areas / for qualifying veterans). 640 FICO. Statewide. Maryland DHCD's 1st Time Advantage 3% Loan provides a 0% deferred second mortgage equal to 3% of the first mortgage amount for down payment and/or closing cost assistance. Pairs with a 30-year fixed-rate MMP first mortgage (FHA, VA, USDA-RD, or HFA conventional) funded via Maryland mortgage revenue bonds (MRB). The 3% DPA second is a non-amortizing soft second - no monthly payment, 0% interest - due in full on sale, refinance, transfer of title, payoff of the first mortgage, or non-owner-occupancy. Income limits up to $131,700 (1-2 person non-targeted) / $229,460 (3+ person targeted/higher-cost county). Purchase price limits $544,233 statewide non-targeted to $1,535,015 in high-cost Montgomery/PG/Calvert/Charles/Frederick counties and federally targeted census tracts. 640 minimum FICO, 45% max DTI. Maryland HomeCredit (MCC) eligible. Homebuyer education required. Funding comes from State and Bond.

1st Time Advantage 3% Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by 0% deferred second mortgage. Full balance due on sale, refinance, transfer of title, payoff of the first mortgage, or non-owner-occupancy. No monthly payment. No forgiveness schedule. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

1st Time Advantage 3% Loan is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer requirement waived in federally designated targeted census tracts and for qualifying veterans under IRS Section 143(d)(2)(B). On credit, the program states: 640 minimum FICO across all eligible first-mortgage products (FHA, VA, USDA, conventional). A homebuyer education course is required, through MMP-approved homebuyer education provider network (HUD-approved housing counseling agencies, Framework, eHome America, MGIC). Required prior to closing. Residency requirement: Property must be located in Maryland and be the borrower's primary residence. Statewide eligibility. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. First-time homebuyer required (no ownership of a primary residence in the past 3 years); waived in federally targeted census tracts and for qualifying veterans (federal MRB qualified-veteran exception). Owner-occupied primary residence. 640 minimum FICO. Maximum 45% DTI. Income at or below MMP limits ($131,700 1-2 person non-targeted to $229,460 3+ person targeted/high-cost). Purchase price within MMP limits ($544,233 statewide non-targeted to $1,535,015 high-cost / targeted). Homebuyer education required (in-person or online via MMP-approved provider). Must use an MMP-approved participating lender. Must use MMP master servicer.

1st Time Advantage 3% Loan limits household income to $229,460. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

1st Time Advantage 3% Loan caps the purchase price at $1.5M. Eligible property types include Single-family detached, 2-unit owner-occupied (1-unit only for some products per overlays), condominium (project-approved), townhouse, PUD. Per first-mortgage overlays. New construction is eligible. Manufactured homes are not eligible.

1st Time Advantage 3% Loan names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

1st Time Advantage 3% Loan serves homebuyers purchasing in Statewide, Maryland. The program targets specific areas: Federally designated targeted census tracts (per IRS Section 143) where MRB FTHB requirement is waived and higher income / acquisition-cost limits apply. Higher-cost counties (Montgomery, Prince George's, Calvert, Charles, Frederick) have their own elevated limits. Verify by county.

Applications for 1st Time Advantage 3% Loan go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved through MMP Lender Online portal at time of rate lock by approved participating lender. Daily rate sheet posted at mmp.maryland.gov/Lenders/Pages/Rates.aspx. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.