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1st Time Advantage 4% Loan

Statewide, Maryland

Last verified
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Assistance

4%

Of the purchase price, as the program sets it

Income limit

$229,460

The household income limit the program publishes

Price cap

$1.5M

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is 1st Time Advantage 4% Loan?

1st Time Advantage 4% Loan is a deferred second loan for homebuyers in Statewide, Maryland.

  • Maryland DHCD MMP 1st Time Advantage with 4% deferred 0% DPA second. Bond-funded MRB first. FTHB required (waived in targeted areas). 640 FICO. Statewide.
  • Maryland DHCD's 1st Time Advantage 4% Loan provides a 0% deferred second mortgage equal to 4% 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. The 4% 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 up to $229,460 (3+ person targeted). Purchase price up to $1,535,015 in highest-cost MD jurisdictions. 640 FICO, 45% DTI. The 4% tier offers higher DPA than the 3% tier in exchange for a slightly higher first-mortgage note rate. Maryland HomeCredit MCC eligible. Homebuyer education required.
  • Funding comes from State and Bond.

How much assistance does it provide?

1st Time Advantage 4% Loan provides assistance worth 4% of the purchase price, as set by the program.

  • Buyer contribution: No mandatory borrower minimum contribution from MMP; first-mortgage agency overlays may impose minimum.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

1st Time Advantage 4% 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, payoff of first, 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.

Who qualifies?

1st Time Advantage 4% Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB waived in federally targeted tracts and for qualifying veterans (IRS Section 143(d)(2)(B)).
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO across all eligible first-mortgage products.
  • A completed homebuyer education course, through MMP-approved homebuyer education provider network (HUD-approved counseling agencies, Framework, eHome America, MGIC).
  • Residency: Property in Maryland; primary residence. Statewide.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien.
  • First-time homebuyer required (waived in federally targeted census tracts and for qualifying veterans). Owner-occupied primary residence. 640 FICO minimum, 45% max DTI. Income within MMP limits ($131,700 1-2 person non-targeted to $229,460 3+ person targeted/high-cost). Purchase price within MMP limits ($544,233 to $1,535,015). Homebuyer education required. Must use an MMP-approved participating lender and master servicer.

The program excludes

  • Manufactured homes
  • Purchases above the $1.5M price cap
  • Households above $229,460

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

1st Time Advantage 4% 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.

What kind of home can it be used for?

1st Time Advantage 4% Loan caps the purchase price at $1.5M.

  • Eligible property types include Single-family detached, 2-unit owner-occupied (per overlays), condo (project-approved), townhouse, PUD.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

1st Time Advantage 4% 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.

Where does it apply?

1st Time Advantage 4% Loan serves buyers purchasing in Statewide, Maryland.

  • The program targets specific areas: Federally targeted census tracts and high-cost Montgomery/PG/Calvert/Charles/Frederick counties have higher income / purchase-price limits.

How do you apply?

Applications for 1st Time Advantage 4% Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through MMP-approved homebuyer education provider network (HUD-approved counseling agencies, Framework, eHome America, MGIC)..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through MMP Lender Online portal at rate lock by approved lender., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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