Maryland Mortgage Program - Down Payment Assistance Program

Key takeaways: 

• First-time home buyers in Maryland can get fixed low-interest mortgages, down payment assistance, and closing cost assistance through special loans & grants.
• If you owe at least $25,000 in student debt, Maryland’s You’ve Earned It program offers $10,000 in down payment assistance.
• You can talk to a Maryland Mortgage Program approved lender to find what programs are right for you.

Purchasing your first home is a major life milestone that can give you and your family a wonderful sense of security. It’s also incredibly expensive!

Fortunately, if you’re a first time home buyer Maryland, you can take advantage of many programs to make the home buying process more affordable. In this article, we’ll review these benefits and explain how to get them.

About the Mortgage Program

This program offers several specialty loans for specific types of borrowers including those with student debt, those purchasing in a particular location or low-income homebuyers. Product enhancements and incentives such as special assistance grants or mortgage credit certificates may also be available for individuals that qualify.

Maryland Mortgage Program 1st Time Advantage

This program offers eligible first-time homebuyers the lowest 30 year fixed interest rate available for a home loan. Mortgage credit certificates may not be combined with other first-time advantage loans. This includes no down payment assistance available but typically offers the most competitive interest rates. This also accompanies a $5000 loan for down payment and closing costs assistance. This second lien has a 0% interest rate and no payments are due for the life of the first mortgage.

Once the first mortgage ends either through repayment, sale or refinance, the second lien is due and payable. This program also comes with a down payment assistance loan equal to 3% of the first mortgage in a 0% deferred second lien.

Maryland Flex Loan Programs

This is a 30 year, fixed-rate home loan accompanied by additional funds for a down payment and closing cost assistance. The assistance or grants are available in the form of no interest, deferred loans or a grant that does not have to be paid back. This offers the most competitive interest rates with mortgage credit certificates. It comes with a $5000 loan for down payment assistance or closing costs and the second lien has a 0% interest. No payments are due for the life of the mortgage unless the first mortgage ends by repayment, refinance, or transfer. 

This program is a Flex 3% loan with a down payment assistance loan equal to 3% of the first mortgage or a 3% grant which does not get repaid or a 4% grant equal to 4% of the first mortgage that does not have to be repaid. Eligibility is different for each of these subprograms.

Partner Match

Marilyn's partner match is only available through mortgage premier loans in the form of a no-interest, deferred loan and may be used for down payment and closing cost assistance. This is the most extensive option for mortgage programs. Organizations may include employers making an investment in long-term sustainability, homebuyers and real estate developers, community organizations making efforts to build sustainable neighborhoods as well as local governments attracting new residents to a community.

These programs may offer grants, loans, and other assistance options and because of the wide variety of options, this is definitely something most potential homebuyers should research. Similar to a loan assisted down payment, this additional funding is available as a no-interest, deferred loan from Maryland payable when the first mortgage is fully paid off.

Maryland SmartBuy Program

This program gives homebuyers an opportunity to purchase any property in Maryland that meets the program guidelines while paying off student debt. To qualify, homebuyers must have an existing student debt with a minimum balance of $1000.

This program provides up to 15% of the home purchase price for the borrower to pay off their outstanding student debt with a maximum payoff of $30,000.

Full student debt for at least one of the borrows must be paid off at the time of the home purchase and homebuyers must meet all eligibility requirements. Financing is only available to qualified lenders as well.