If you want to buy a house with low income in Maryland, there is help available to you! There are many programs that will assist you with tax reductions, down payment assistance and so much more!
Since there are several different types of assistance for low income home buyers in Maryland, we’ve tried to organize this list by type as much as possible.
First time home buyer? There’s help in Maryland!
Homeownership for Individuals with Disabilities Program provides assistance for low income households with a disabled family member. Income and home price restrictions apply.
SmartBuy assists buyers with eligible student debt. This program will help you pay off student debt and assist with closing costs to purchase your move-in ready home.
To participate in this program, you will obtain two mortgages:
The first mortgage is a standard 30-year, fixed mortgage for up to 95% of the sale price of the home.
The second mortgage is a 5-year forgivable loan for up to 15% of the purchase price. This second loan must be used to pay off your outstanding student debt at the time of the home’s purchase. The second mortgage has a 0% interest rate with no monthly payments and, after five years, the debt is completely forgiven!
You may also be able to obtain a third mortgage in the amount of $5,000 for down payment assistance. This mortgage is deferred and has a 0% interest rate. However, it must be paid upon the sale, payoff, transfer or refinance of the mortgage.
For a limited time, eligible home buyers with student loan debt who make a purchase in one of Maryland’s Sustainable Communities can receive a 0.25% reduction in their Maryland Mortgage Program mortgage rate.
Maryland HomeCredit empowers homeowners to receive a federal tax credit equal to 25% of the annual mortgage interest payments (up to $2,000) per year for the life of the loan! These benefits end when you sell, refinance, transfer or pay off your original mortgage.
Maryland Homefront provides a 0.25% discount on your fixed mortgage rate for veterans and active duty military. This discount is an expression of appreciation for the sacrifices made by members of the military and their families. This can be used with the Maryland Mortgage Program’s Down Payment Assistance Program!
Maryland Mortgage Program provides several benefits to first time home buyers in Maryland:
- Down payment and closing cost assistance assistance from various sources. In addition to your interest-free, deferred loan of up to $5,000 from the state, you may also be able to receive additional assistance from other partner programs.
- Low interest rates that are often lower than commercial lenders.
- Free and low-cost homebuyer education courses.
Maryland Mortgage Grant Assist can cover up to 4% of the amount of the primary mortgage. This grant can be used for down payment and closing costs. However, it does not have to be repaid.
Maryland Opportunity Grant is a product offered by the Maryland Mortgage Program (MMP). If you meet certain income criteria and use an MMP Freddie Mac conventional mortgage, you may receive 2% of your home’s purchase price in a grant for down payment and closing costs.
Get extra help from these Maryland communities!
Anne Arundel County offers up to $20,000 toward the purchase of your home through their Mortgage Assistance Program (MAP).
Baltimore City has many programs for a first time home buyer. These include the following:
- Baltimore City Employee Homeownership Program promotes home purchases by employees of the City and some quasi-City agencies. The program provides up to $5,000 toward the first home purchase of eligible buyers. Qualifying agencies include:
- Buying Into Baltimore can provide $5,000 toward the purchase of a home anywhere in Baltimore City.
- City Living Starts Here provides a limited number of incentives for purchases in specific neighborhoods.
- Community Development Block Grant Homeownership Assistance Program also provides $5,000 in down payment and closing cost assistance for qualifying low income home buyers.
- Live Near Your Work Program provides an employer matching program. This program can contribute up to $2,500 toward the purchase of your home. Click here for a list of participating employers – and note that the Johns Hopkins Live Near Your Work Program offers up to $36,000 toward your home purchase!
- Project Reinvest: Homeownership program that provides up to $10,500 in down payment and closing cost assistance. This benefit can be combined with the Maryland Mortgage Program (MMP)!
- Vacants to Value Booster Program can provide up to $10,000 toward your closing costs if you’re purchasing a home that was previously unoccupied.
Baltimore County provides up to $10,000 to low income households. These funds can be used to help pay closing costs when purchasing an existing home within the Community Conservation Areas of Baltimore County.
Frederick provides many homebuyer programs also. They provide homebuyer education classes, weatherization assistance, CPIP down payment assistance and a special program for city employees.
Gaithersburg provides a Homebuyer Assistance Loan Program (GHALP) that can contribute $12,000 to $25,000 toward the purchase of your home inside the corporate limits of the City of Gaithersburg.
Hagerstown also participates in some homebuyer programs. A down payment and rehabilitation program is available for buyers who are purchasing a home in City Center or other city locations. The Homeownership Program offers renovated homes for a low price to qualifying buyers.
Harford County provides a first time home buyer program that includes homebuyer education classes. It does not appear that financial assistance is included in this program.
Howard County provides down payment assistance to qualified home buyers.
Montgomery County partners with the Maryland Mortgage Program to provide up to $25,000 in down payment assistance to eligible first time home buyers in Montgomery County!
Prince George’s County offers up to $10,000 in down payment assistance through their “Pathway to Purchase” first time home buyer program.
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