Direct Homeownership Assistance Program

What is Direct Homeownership Assistance Program?

Direct Homeownership Assistance Program is a forgivable loan for homebuyers in Baltimore, Maryland.

• $5,000 forgivable second-mortgage bonus on top of the First-Time Homebuyers Incentive Program for buyers who are either (a) renters purchasing their current rental home of 6+ months OR (b) households with a member with a disability. 5-year forgivable, 0%, 80% AMI cap, FTHB-only, Baltimore City only.
• $5,000 in down payment and closing cost assistance for first-time homebuyers who EITHER (a) purchase the house they have rented and occupied for at least the past six months, OR (b) have a household member with a documented disability. Structured as a 5-year forgivable second mortgage at 0% interest, forgiven 20%/year over 5 years of continued owner-occupancy. Designed as a tenant-purchase / disability-accommodation incentive. Can ONLY be used in combination with the Baltimore City First-Time Homebuyers Incentive Program (FTHIP) - i.e., DHAP is a stack-on bonus to FTHIP, not a standalone incentive. Property must be Baltimore City. Buyer must contribute $1,000+ of own funds. Homebuyer counseling certificate required from city-approved agency (valid 12 months). 80% AMI household income cap.
• Funding comes from Federal CDBG and Local Government.

How much assistance does it provide?

Direct Homeownership Assistance Program offers up to $5,000 in assistance.

• Buyer contribution: Buyer must contribute at least $1,000 of own funds.
• 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?

Direct Homeownership Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven 20%/year over 5 years of continuous owner-occupancy. Prorated unforgiven balance due on sale, transfer, cash-out refi, or non-owner-occupancy within 5 years.
• The assistance is recorded in 3 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Direct Homeownership Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Direct Homeownership Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% Area Median Income (AMI) for Baltimore HMFA, by household size. Approximate 2026 limits: $68,450 (1-person) to $129,050 (8-person). Verify current at livebaltimore.com/annual-median-income-limits-for-baltimore-city.
• 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?

Direct Homeownership Assistance Program caps the purchase price as follows: First-mortgage amount cannot exceed FHA loan limit for Baltimore MSA ($731,400 single-family in 2025/2026).

• Eligible property types include Single-family detached, Townhome, Rowhouse, Condominium, and 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Direct Homeownership Assistance Program names buyers with disabilities 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?

Direct Homeownership Assistance Program serves buyers purchasing in Baltimore, Maryland.

How do you apply?

Applications for Direct Homeownership Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Baltimore City-approved homeownership counseling agencies (NHS of Baltimore, Druid Heights CDC, Belair-Edison, Southeast CDC, GO Northwest, St. Ambrose)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply via Baltimore Applicant Portal (applicantportal.dhcd.baltimorecity.gov) along with FTHIP application. Approval required prior to closing., and are subject to availability.

3. 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.