Maryland Mortgage Program

What is Maryland Mortgage Program?

Maryland Mortgage Program is a deferred second loan for homebuyers in Maryland.

• Maryland's state homeownership program offering down payment and closing cost assistance of up to 3% of the first mortgage loan amount as a 0% interest deferred subordinate loan. Administered by the Maryland Department of Housing and Community Development (DHCD) and available statewide to income-eligible first-time homebuyers.
• Down payment and closing cost assistance equal to 3% of the first mortgage loan amount.
• 0% interest deferred subordinate loan with no monthly payments.
• repayment deferred until sale, refinance, or when property is no longer owner-occupied.
• must be paired with Maryland Mortgage Program first mortgage.
• available statewide to income-eligible first-time homebuyers.
• Funding comes from State.

How much assistance does it provide?

Maryland Mortgage Program provides assistance worth 3% of the purchase price, as set by the program.

• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Maryland Mortgage Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, Refinance, and No Longer Primary.
• 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?

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

What are the income limits?

Maryland Mortgage Program limits household income to 100% of the area median income, which varies by county and household size.

• 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?

Maryland Mortgage Program can be used for Single Family, Condo, and Townhouse.

Where does it apply?

Maryland Mortgage Program serves buyers purchasing anywhere in Maryland.

How do you apply?

Applications for Maryland Mortgage 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 before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-Come-First-Served, 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.