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Maryland SmartBuy 3.0

Statewide, Maryland

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Assistance

15%

Of the purchase price, as the program sets it

Income limit

$129,600

The household income limit the program publishes

Price cap

$1.5M

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Maryland SmartBuy 3.0?

Maryland SmartBuy 3.0 is a forgivable loan for homebuyers in Statewide, Maryland.

  • Maryland DHCD MMP SmartBuy 3.0 - student-loan debt elimination at closing (up to 5% / $20,000 paid directly to student-loan servicer) plus standard MMP first mortgage and optional DPA second. FTHB required. 720 FICO. Statewide.
  • Maryland DHCD's SmartBuy 3.0 is a specialized MMP product for homebuyers carrying existing student-loan debt. Provides student-loan payoff funds at closing equal to up to 5% of the home purchase price (capped at $20,000) - paid directly to the borrower's student-loan servicer to ELIMINATE the borrower's existing student debt at the closing table. The borrower must have at least $1,000 in existing student-loan debt and must pay it off IN FULL at closing (partial payoffs not permitted). Pairs with a 30-year fixed-rate MMP first mortgage. SmartBuy 3.0 also stacks with a standard MMP DPA second for additional down-payment / closing-cost help. Income range $44,950 - $129,600. 720 minimum FICO (higher than standard MMP 640 - reflects program risk profile). Homebuyer education required. The student-debt elimination component addresses the affordability barrier student-loan payments create for monthly DTI qualification.
  • Funding comes from State and Bond.

How much assistance does it provide?

Maryland SmartBuy 3.0 provides assistance worth 15% of the purchase price, as set by the program.

  • Buyer contribution: No mandatory MMP minimum borrower contribution; agency overlays may impose minimum. If existing student debt exceeds the 5% / $20,000 SmartBuy cap, borrower must bring own funds to extinguish remaining balance at closing.
  • 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?

Maryland SmartBuy 3.0 is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by SmartBuy student-debt payoff funds are structured as a 0% deferred second mortgage - full balance due on sale, refinance, transfer of title, payoff of first mortgage, or non-owner-occupancy. No monthly payment. The funds eliminate the borrower's pre-existing student-debt obligation at closing - they DO NOT replicate it as ongoing debt service. Standard MMP DPA second (if stacked) follows its own deferred soft-second terms.
  • 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 SmartBuy 3.0 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: 720 minimum FICO across all eligible first-mortgage products. SmartBuy's 720 minimum is higher than the standard MMP 640 floor.
  • A completed homebuyer education course, through MMP-approved homebuyer education provider network. SmartBuy borrowers also receive student-debt-payoff counseling.
  • Residency: Property in MD; primary residence. Statewide.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien.
  • STUDENT-DEBT REQUIREMENT: Borrower must have at least $1,000 of existing student-loan debt at application AND must pay off the FULL OUTSTANDING BALANCE of that student debt at closing using SmartBuy funds (partial payoff NOT permitted - if student debt exceeds the SmartBuy cap, borrower must bring funds to extinguish the remaining balance at closing or the loan does not qualify). FTHB required (waived in federally targeted tracts and for qualifying veterans). Owner-occupied primary residence. 720 FICO MINIMUM (higher than standard MMP). Maximum 45% DTI. Income $44,950 (low end) to $129,600 (high end - 3+ person high-cost county). Purchase price within MMP acquisition-cost limits. Homebuyer education + SmartBuy-specific student-debt-payoff counseling required. MMP-approved SmartBuy lender + master servicer.

The program excludes

  • Manufactured homes
  • Purchases above the $1.5M price cap
  • Households above $129,600

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?

Maryland SmartBuy 3.0 limits household income to $129,600.

  • 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 SmartBuy 3.0 caps the purchase price at $1.5M.

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

Is there eligibility for specific groups?

Maryland SmartBuy 3.0 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?

Maryland SmartBuy 3.0 serves buyers purchasing in Statewide, Maryland.

  • The program targets specific areas: Federally targeted census tracts and high-cost MD counties have elevated income / purchase-price limits.

How do you apply?

Applications for Maryland SmartBuy 3.0 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. SmartBuy borrowers also receive student-debt-payoff counseling..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through MMP Lender Online portal at rate lock. SmartBuy designation flagged at reservation with student-debt documentation., 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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