Down Payment Help in Maryland
Every state has unique programs that can help homebuyers access funds to buy a home. Instead of reinventing the wheel, The Mortgage Reports made a comprehensive list of homebuying assistance and grant programs for all 50 states. When it comes to closing cost and down payment help in Maryland, borrowers have some options. Here is what we gathered from The Mortgage Reports and the State of Maryland regarding down payment help.
Maryland Down Payment & Closing Cost Assistance Programs
Maryland has a variety of options to help buyers get help with down payment and closing costs.The Maryland Department of Housing and Community Development (MDHCD) offers assistance through the Maryland Mortgage Program. There are options available for people buying a house for the first time and those who are selling to buy another home.
For First-Time Homebuyers
First-time homebuyers can use Maryland’s 1st Time Advantage home loans, which offers several down payment assistance and closing cost help options:
- 1st Time Advantage 6000: This is a $6,000 loan that goes toward the down payment and closing costs. You don’t have to pay it back unless you transfer ownership, sell the home, or refinance!
- 1st Time Advantage Loans: These loans are worth 3%, 4%, or 5% of the home’s purchase price, and are deferred as second mortgages with zero interest. It’s a great way to offset the costs of a down payment!
- HomeStart: This is another deferred loan with 0% interest that offers up to 6% of the home purchase price. It is a 30-year deferred loan that is only available to borrowers with an income at or below 50% of the area median income (AMI).
- Partner Match programs can provide additional funding to 1st Time Advantage 6000 or Flex 6000 loans. These are no-interest, deferred loans that can be used for down payment and closing costs.
Note: It’s important to mention that Mortgage Credit Certificates aren’t available for the 1st time advantage loans.
More Options For Homebuyers
If you’re not a first-time buyer, then you may have some equity to help you out with buying a second home. You may even look into using one of our new construction programs to use equity to pay toward closing costs while finding a solution for your first home. Here are the programs available to homebuyers and beyond in Maryland.
- MMP Flex Loans are 30-year, fixed-rate home loan products that may include additional funding for down payment and closing costs. This is a no-interest, deferred loan.
- There are also specialty loans available for specific types of borrowers, such as people with student debt, or individuals that want to purchasing in a particular area.
- Montgomery Homeownership Program VII – Available to eligible borrowers in Montgomery County.
- HomeAbility – A special program that assists homebuyers with disabilities.
- Maryland SmartBuy -A special program for homebuyers with eligible student debt.
- Greenbelt Home Advantage -Available to eligible borrowers in the City of Greenbelt.
There may also be product enhancements applicable to any of these loans, such as special assistance grants or mortgage credit certificates. To know which ones are possible, speak to your loan officer.
Your Next Steps
To get started, it’s important to find out your position as soon as possible. Speak to one of Maryland’s state-approved mortgage lenders to get a feel for what kind of loans are applicable to your situation. Best of luck on your homebuying journey!
Alicia Persson is the real estate content writer for Marketplace Homes. She has several years of experience working in real estate teams that specialized in investments and property management. Before she joined MH, she was a freelance writer for 7 years, providing real estate and home living content for boutique digital marketing agencies.
She is a proud University of Virginia master’s graduate and enjoyed her undergraduate years at the University of Mary Washington. When she is not writing, she plays keytar and does female lead vocals in a local 90’s band or spends time with her amazing family.