First-Time Home Buyer Programs in Maryland
Buying your first home in Maryland? The Maryland Department of Housing and Community Development runs the state's flagship program — Maryland Mortgage Program — and it stacks with federal loans and local DPA. Here's the full picture, plus how to qualify.
Maryland Mortgage Program
Below-market first mortgage from Maryland DHCD paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Maryland first-time buyers meeting income and purchase-price caps.
How first-time homebuyer programs work in Maryland
"First-time buyer" in Maryland usually means you haven't owned a principal residence in the past three years — a wider net than most people expect. Maryland DHCD programs typically pair a competitive first mortgage with down payment and closing-cost assistance, often as a forgivable second lien or grant, plus an optional Mortgage Credit Certificate (MCC) that converts a portion of mortgage interest into a federal tax credit for the life of the loan.
Eligibility hinges on three inputs: your credit score (typically 620–640 for conventional, 580 for FHA), your household income relative to program caps that vary by county in Maryland, and the purchase price of the home. Completing a HUD-approved homebuyer education course is required before closing on most Maryland DHCD products.
The best part: Maryland first-time buyer programs stack with FHA, VA, USDA, and conventional first mortgages, so an FHA borrower with a 620 score can still access Maryland DHCD DPA. And city or county programs in Maryland often layer on top for even larger totals — see the Grant Finder for your ZIP-specific total.
How to qualify: Maryland first-time buyer steps
- 1
Check your credit for MD program eligibility
Most Maryland first-time buyer programs require a minimum credit score (typically 620–640 for conventional, 580 for FHA). Pull your score for free with a soft inquiry so you know where you stand before applying.
- 2
Confirm Maryland first-time buyer status
Maryland DHCD defines "first-time buyer" as someone who hasn't owned a principal residence in the past three years. Some Maryland targeted areas waive this rule.
- 3
Take a MD approved homebuyer education course
Maryland DHCD requires a HUD-approved homebuyer education course before closing on most first-time programs. Most run 6–8 hours and can be completed online.
- 4
Apply through a Maryland DHCD-approved lender
Maryland Mortgage Program is originated by participating MD lenders, not by the HFA directly. Your loan officer submits the DPA package alongside your main mortgage application.
- 5
Close on your Maryland home
First mortgage funds and DPA come to closing together. Keep documentation of the assistance terms — some Maryland DPA is forgivable after a residency period.
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Start my MD readiness checkMaryland first-time buyer programs: FAQ
What is the flagship first-time buyer program in Maryland?▾
Maryland Mortgage Program is the headline first-time homebuyer product from the Maryland Department of Housing and Community Development (Maryland DHCD). Below-market first mortgage from Maryland DHCD paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Maryland first-time buyers meeting income and purchase-price caps.
What credit score do I need for Maryland first-time buyer programs?▾
Most Maryland first-time buyer programs require a minimum credit score of typically 620–640 for conventional, 580 for FHA. Higher scores unlock better interest rates and more DPA options. If your score is below the floor, use HomeApproach's Credit Readiness tool to see the fastest path to qualifying.
Do Maryland first-time buyer programs work with FHA or VA loans?▾
Yes. Maryland Mortgage Program and most Maryland DHCD products layer on top of FHA, VA, USDA, and conventional first mortgages. Your lender submits the DPA application alongside your first mortgage — no separate credit pull required.
Can I stack Maryland first-time buyer programs with local city or county DPA?▾
In most cases, yes. Maryland buyers regularly combine Maryland DHCD state assistance with city or county DPA and federal loans. Home Approach's Grant Finder waterfalls through all four layers by ZIP to show your specific total.
Do I have to be a Maryland resident to qualify?▾
Maryland Mortgage Program requires the home you're buying to be in Maryland and to become your primary residence. You do not typically need to be a current Maryland resident to apply, but check program-specific residency rules.