First-time buyer programs in Maryland and Baltimore

Who counts as a “first-time buyer” in Maryland?

MMP defines a first-time homebuyer as someone who has not owned residential property for three years or more. MMP notes this is not the same definition used for recording-tax purposes. The 1st Time Advantage line also accepts:

• buyers purchasing in a targeted area who will sell their current home before closing;
• honorably discharged veterans who have not used the exemption before (DD-214 required).

All of Baltimore City is a targeted area, according to MMP’s eligibility page. There, repeat buyers can use any MMP loan product, and the income limits are the targeted ones. Every borrower must also complete an approved homebuyer education class, with a certificate issued within 12 months before settlement.

MMP loans and down payment assistance

MMP’s two main lines are fixed-rate loans through state-approved lenders. The second-lien assistance has a 0% interest rate, no monthly payment, and is due when the first mortgage ends (sale, refinance, payoff).

Source: Maryland Mortgage Program product pages, October 13, 2026. The Maryland HomeCredit tax credit may not be combined with the 1st Time Advantage line.

Interest rates change often. DHCD’s rate sheet of October 13, 2026 listed, for conventional loans, 7.375% for 1st Time Advantage Direct, 7.750% for the $6,000 and 3% options, and 8.000% for the 5% option; government-backed loans for the same options were between 7.250% and 7.625%. Rates are subject to change until your lender locks the loan.

Other MMP products: Maryland SmartBuy pays up to 15% of the price (maximum $25,000) toward student debt, forgiven after 5 years, with a minimum credit score of 720; HomeAbility helps buyers with disabilities; the FHA 203(k) Limited loan adds repair funds. On the $6,000 options, the Partner Match matches help from an approved partner (for example a local government or employer) up to $2,500.

Income and price limits for Baltimore City

DHCD’s limits, effective June 24, 2026, for Baltimore City (targeted area):

Source: DHCD, Maryland Mortgage Program Limits, Attachment III. Household income counts all adults living in the home. MMP also asks that you do not own other residential property and that liquid assets stay under 20% of the purchase price.

A worked example

This is an example, not an offer. On a $240,000 first mortgage, a 3% option gives a $7,200 deferred second loan and a 5% option gives $12,000. The 5% option carries a higher rate than the 3% one in the October 13 rate sheet, so ask your lender to compare the monthly payments.

Baltimore City incentives

The City’s Department of Housing and Community Development (DHCD) lists these programs. All require homeownership counseling from a City-approved agency within a year before you try to buy and at least $1,000 of your own money. Funds are first come, first served, and your settlement date should be at least 30 days after you apply.

Most of this money is a five-year forgivable loan; Live Near Your Work is a grant. The city flyer adds a $5,000 bonus for buyers who buy the home they have rented for six months or who have a disability. Buyers receiving MMP funds are not eligible for the 2.5% rate buydown.

Buy Back the Block gives $15,000 (purchase) or $20,000 (purchase and renovation) in grants that need not be repaid, for people who have lived at an eligible address for 12 months or more and buy in the eligible area. Household income must be below $144,720 or 120% of area median, whichever is greater.

How to apply

1. Take a HUD-approved homebuyer course; ask a City-approved counseling agency about Baltimore programs.
2. Get pre-qualified by an MMP-approved lender; MMP’s site has a lender search.
3. For city incentives, apply in the City’s applicant portal (your counselor and lender complete the First-Time Homebuyers application).

See our home buying steps, the Maryland closing costs guide, transfer tax in Maryland and buying a home in Baltimore. For price context, see Maryland home prices.