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Maryland Mortgage Programs (MMP)


Maryland Mortgage Programs help homebuyers in Maryland achieve their dream of homeownership through a range of programs that make purchasing and owning a home more affordable.

MMP home loans are available as either Government or Conventional insured loans. Government loans can be guaranteed by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), or the U.S. Department of Agriculture/Rural Housing Service (USDA/RHS). Conventional loans may have higher interest rates but the private mortgage insurance cost could result in a lower overall monthly payment.

Maryland Mortgage Program

  • 30-year, fixed-rate deferred payment loan at 0 percent interest to cover down payment and closing costs up to 5 percent of the purchase price. It helps to think of it almost like a grant – you’ll only repay it when you sell or refinance your home.
  • The program also includes a low-interest first loan. Household Income limits in Maryland range from $92,500 up to $154,420, depending on property location and household size.
  • At least one of the buyers must be a “first-time” home buyer – in this case, that means someone who hasn’t owned a home in the previous three years.
  • Maryland SmartBuy 2.0

  • A qualifying homebuyer can purchase a home through the Maryland Mortgage Program, and use up to 15% of the value of the home (up to $40,000) to pay off their student debt while still counting toward their new home.
  • Allows you to purchase any home in Maryland that meets the Maryland Mortgage Program guidelines unlike version 1.0 that limited you to ready-to-move-in homes owned by the state and program. The program can bring up to $40,000 in student debt relief.
  • To qualify for Maryland Smart Buy 2.0 program, homebuyers must have an existing student debt with a minimum balance of $1,000
  • MMP:1st Time Advantage and 1st Time Advantage With 3% Assistance
    The MMP 1st Time Advantage program:

  • 30-year fixed-rate mortgage
  • The lowest rates available for a Maryland Mortgage Program loan
  • The MMP 1st Time Advantage With 3% Assistance program:

  • Low mortgage rates.
  • A 3% deferred, no-interest second loan
  • Can be used for a down payment or for closing costs
  • No payments are due until the first mortgage is paid off, transferred or refinanced
  • Requirements
    For both programs, you must:

  • Be a first-time homebuyer, or
    Not have owned a home in more than three years, or
    Be buying a home in a targeted area, or
    Be an honorably discharged veteran who has not previously used the first-time homebuyer exemption.
  • The 1st Time Advantage program can’t be combined with the Maryland HomeCredit Program
  • Maryland HomeCredit
    A federal tax credit of 25% of the value of the mortgage interest payments you make each year (maximum of $2,000)
    Credit is available every year until the home is sold, paid off, refinanced or transferred
    The standard MMP program requirements apply
    You must apply for the HomeCredit program when you apply for a mortgage