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MMP Flex 3% Loan

Statewide, Maryland

Last verified
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Assistance

3%

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 MMP Flex 3% Loan?

MMP Flex 3% Loan is a deferred second loan for homebuyers in Statewide, Maryland.

  • Maryland DHCD MMP Flex 3% - non-bond TBA-funded MMP first with 3% deferred 0% DPA second. NO FTHB requirement (repeat buyers OK). NO recapture tax (non-MRB). 640 FICO. Statewide.
  • Maryland DHCD's MMP Flex 3% Loan is a non-bond, TBA-funded MMP product providing 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) sold into the To-Be-Announced (TBA) MBS market. Because Flex is NOT bond-funded, there is NO IRS Section 143 federal recapture tax, and the FIRST-TIME-HOMEBUYER REQUIREMENT IS WAIVED - repeat homebuyers eligible. The 3% DPA second is a non-amortizing 0% soft second - no monthly payment - due on sale/refinance/transfer/payoff. Income up to $229,460 (3+ person targeted/high-cost). 640 FICO, 45% DTI. Homebuyer education required.
  • Funding comes from State and TBA.

How much assistance does it provide?

MMP Flex 3% Loan provides assistance worth 3% of the purchase price, as set by the program.

  • Buyer contribution: No mandatory MMP minimum borrower contribution; 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?

MMP Flex 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 soft second. Full balance due on sale, refinance, transfer of title, 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?

MMP Flex 3% Loan is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO.
  • A completed homebuyer education course, through MMP-approved homebuyer education provider network.
  • Residency: Property in MD; primary residence. Statewide.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien.
  • FTHB requirement WAIVED (Flex is non-bond TBA - no MRB FTHB rule). Owner-occupied primary residence. 640 FICO minimum, 45% max DTI. MMP income / purchase-price limits ($131,700 1-2 person non-targeted to $229,460 3+ person targeted / high-cost; $544,233 to $1,535,015 purchase price). Homebuyer education required. MMP-approved lender + 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?

MMP Flex 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.

What kind of home can it be used for?

MMP Flex 3% Loan 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?

MMP Flex 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.

Where does it apply?

MMP Flex 3% Loan serves buyers purchasing in Statewide, Maryland.

  • The program targets specific areas: High-cost Montgomery / PG / Calvert / Charles / Frederick counties have elevated income / purchase-price limits.

How do you apply?

Applications for MMP Flex 3% 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..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through MMP Lender Online portal at rate lock. Daily TBA-execution rate sheet posted at mmp.maryland.gov/Lenders/Pages/Rates.aspx., 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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