The Maryland Mortgage Program (MMP) is the state’s home loan program for buyers who need help with the down payment. You get a 30-year fixed first mortgage from an approved private lender, and most MMP products add a second loan at 0% interest that covers your down payment and closing costs. You don’t make payments on that second loan. It comes due when you sell, refinance or pay off the house.
I walk a lot of first-time buyers through MMP, and the program itself is not complicated. What trips people up is timing and paperwork. Below is how it works as of October 2026, with links to the program’s own fact sheets so you can check anything I say. If you’d rather talk it through, start on our buyer page and we’ll set up a call.
This is general information, not lending advice. Your lender sets the final terms.
What MMP is
MMP is run by the Community Development Administration, part of the Maryland Department of Housing and Community Development (DHCD). DHCD doesn’t lend to you directly. You apply with an MMP-approved lender, the lender closes the loan, and the state’s program sits behind it.
The basic rules on MMP’s loan eligibility page, as of October 2026:
- You have to live in the home as your primary residence.
- Your household income has to be under the limit for your county and household size. MMP counts the income of everyone 18 or older who will live in the house.
- The price has to be under the purchase price limit for the area.
- You can’t own any other real property when you close.
- U.S. citizenship is not required.
MMP doesn’t publish a single credit score minimum on that page. It says your lender decides approval using program, servicer and insurer guidelines. So ask the loan officer what score they need for the product you want.
1st Time Advantage options and how the assistance works
The 1st Time Advantage family is the core of MMP for first-time buyers. MMP’s program fact sheets page lists these options (checked October 2026):
| Product | Down payment and closing cost help |
|---|---|
| 1st Time Advantage Direct | None. Usually the lowest MMP rate. |
| 1st Time Advantage 6000 | A flat $6,000 loan. Can be combined with Partner Match. |
| 1st Time Advantage 3% | A loan equal to 3% of the first mortgage |
| 1st Time Advantage 4% | A loan equal to 4% of the first mortgage |
| 1st Time Advantage 5% | A loan equal to 5% of the first mortgage |
| HomeStart 6% | 6% of the first mortgage, for buyers at or below 50% of area median income |
| First Homes for First Responders and Teachers | 5% of the first mortgage, with a rate 0.5% below the 5% product |
Here is how the assistance loan works, using the 5% product. Per the 1st Time Advantage 5% fact sheet (updated March 25, 2026), it is a 0% interest, 30-year loan with repayment deferred for the life of the first mortgage. The amount is exactly 5% of the first mortgage. If 5% is more than you need for down payment and closing costs, the lender applies the extra to your loan balance. You don’t get cash back.
On a $300,000 first mortgage, 5% is $15,000. That’s a second lien on your house. You don’t pay it monthly, but you pay it back when you sell or refinance, so it is part of your math when you move up later.
The trade-off is the rate. The products with more help usually carry a higher rate than the Direct product. A bigger assistance loan means a smaller check at closing and a somewhat higher payment for 30 years (or until you refinance). Ask your lender to price two or three of these side by side. Sometimes the $6,000 loan plus Partner Match beats 5% on a lower-priced house.
Partner Match
If your employer, a local government or a nonprofit gives you assistance, MMP may match it. The Partner Match fact sheet (updated November 6, 2025) says MMP matches the partner’s contribution dollar for dollar up to $2,500. The match goes on top of the $6,000 from the 6000 product, for up to $8,500 in a 0% deferred loan. Partner Match works only with the 1st Time Advantage 6000 and Flex 6000 loans. The 5% product does not get matched, though outside help can still be layered with it.
First responders and teachers
The newest product started September 4, 2026. Per its fact sheet, First Homes for First Responders and Teachers is a $50 million state initiative with a first mortgage rate half a percent lower than the 1st Time Advantage 5% product, plus a 5% deferred assistance loan. It covers full-time firefighters, EMTs, paramedics and police officers (and volunteer firefighters with 12 months of documented service), plus teachers, and it is for first-time buyers only. If that’s you, mention it on the first call with your lender.
If you’ve owned before
The first-time rule has three exceptions on the fact sheets: buying in a Targeted Area, not having owned a principal residence for more than three years, or being an honorably discharged veteran using the first-time exemption for the first time (a DD-214 is required). Buyers who don’t fit can look at MMP Flex, which is open to repeat buyers and offers Flex Direct, Flex 6000 and a Flex 3% loan.
Income and purchase price limits
I’m not going to copy the limits here, because they change and the table is long. MMP publishes the current income and purchase price limits on its lender resources page, broken out by county, household size and Targeted Area.
Three things to know when you look at it:
- Households of one or two people have one limit. Three or more get a higher one.
- Targeted Areas have higher limits, and the first-time rule is waived there.
- The limit counts all adult household income, not only the people on the loan. A working adult child who lives with you counts.
Your lender will run the numbers, but look at the table before you fall in love with a house over the price limit.
Homebuyer education
Every MMP purchase loan requires a homebuyer education class before you close. MMP’s homebuyer education page (checked October 2026) says the class has to be approved by HUD, Fannie Mae or Freddie Mac, and the certificate has to be issued within 12 months before settlement. Online courses are allowed. The page lists providers including HomeView and Framework, and several are offered in Spanish.
MMP strongly encourages taking it before you sign a contract. I agree. If you’re also using county money, the county may require its own class, often in person. Anne Arundel’s program, for example, requires the ACDS counseling course before you go under contract. Find out which class covers everything before you sign up for one.
Stacking MMP with county programs
MMP covers the whole state. The counties add their own help on top, and some of those programs are bigger than MMP’s. Prince George’s County’s Pathway to Purchase and Montgomery County’s homeownership program each go up to $50,000 for eligible buyers. The county rules decide how they combine with MMP, and some only pair with certain MMP products. I go county by county in down payment assistance in Maryland.
Steps from pre-approval to closing
This is the order that works for our buyers:
- Pick an MMP-approved lender: MMP has a lender directory and a loan officer referral on its site. Not every lender does MMP loans, and the ones who do them often know the paperwork better.
- Get pre-approved for a specific product: Ask for a comparison of Direct, 6000 and 5% (or whatever fits) with the rate and the cash to close for each.
- Take the education class: Do it now so the certificate is ready.
- Check the price limit for the area and set your search inside it. We set up your search on our home search with that cap.
- Write the offer: Your agent and lender should talk before the offer goes in. The lender needs time to reserve the loan with MMP, so be realistic about the settlement date.
- Lender reserves the loan and submits the compliance package: MMP assistance loans require a full pre-closing compliance package.
- Appraisal, final underwriting, closing: The assistance is funded at closing by the lender, and the state reimburses the lender later.
Closing costs are a separate topic. Maryland’s transfer and recordation taxes are a large part of what you’ll bring, and first-time buyers get a break on the state transfer tax. See Maryland closing costs for buyers.
Mistakes that delay MMP closings
These are the ones we see most:
- A settlement date that’s too tight: MMP files take more review than a plain loan. Ask your loan officer how long recent MMP files took and pad the date.
- Taking the wrong class: If a county program needs its own course, an online class may not satisfy it.
- Owning other property: Even a share of an inherited house or a piece of land counts. MMP won’t close if you own other real property at closing.
- Leaving out household income: Income from an adult who lives with you counts toward the limit. Finding that out in underwriting is painful.
- New debt during the loan: A car loan or new card after pre-approval can change your ratios. Wait until after closing.
- Assuming the house qualifies: New construction built within the last 12 months has to be in a Priority Funding Area. MMP’s mapper shows whether an address is in one.
Bottom line
MMP is the first place to look if you’re buying your first home in Maryland and the down payment is the hard part. Use a lender who does these loans often, compare the products side by side, take the class early, and give the file time. If you want help building a search around the program limits, reach out to The Wilson Home Team of Samson Properties or call Stacey at (240) 913-5221.
Sources
- Maryland Mortgage Program, Program Fact Sheets and Tools, checked October 2026
- MMP, 1st Time Advantage 5% Loan fact sheet, updated March 25, 2026
- MMP, 1st Time Advantage 6000 fact sheet, updated July 5, 2022
- MMP, Partner Match Programs fact sheet, updated November 6, 2025
- MMP, First Homes for First Responders and Teachers fact sheet, updated September 4, 2026
- MMP, Loan eligibility, checked October 2026
- MMP, MMP Flex loans, checked October 2026
- MMP, Homebuyer education, checked October 2026
- MMP, Income and purchase price limits, checked October 2026