First-Time Home Buyer Programs in Maryland 

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The 2025 Guide To Buying A Home

Are you considering buying a home but don’t know how to begin? 

The first step is learning the basic steps to prepare for your journey. 

Maryland offers a range of state and local programs to help first-time buyers afford a home, often with down payment assistance, decent interest rates, and home buyer classes. Here’s what you need to know in 2025.

What Is a First-Time Home Buyer?

To be eligible for the Maryland Mortgage Program, home buyers are considered “first-time buyers” if they haven’t owned a home in the past three years. This definition opens up opportunities for many people who may be moving back to the area or getting back in the market. 

Top First-Time Buyer Programs in Maryland 2025

1. Maryland Mortgage Program (MMP)

The Maryland Mortgage Program is the state’s flagship offering for first-time buyers. It provides a 30-year fixed-rate mortgage along with various forms of down payment and closing cost assistance.

Key Options:

1st Time Advantage 5% Loan: Offers 5% of the first mortgage amount as a no-interest, deferred-payment second loan.

1st Time Advantage 3% or 4%: Offers slightly lower assistance with potentially better rates.

Flex 5000: Offers a flat $5,000 in assistance, available to repeat buyers too.

Eligibility Highlights:

First-time buyer status (with some exceptions in targeted areas)

Household income and purchase price limits

Must use an approved Maryland Mortgage Program lender

Completion of homebuyer education

2. Partner Match Programs

MMP also offers a Partner Match Program, where eligible buyers can receive matching funds from employers, real estate agents, community organizations, and local governments. These funds are matched dollar-for-dollar by the state and used toward down payment and closing costs.

3. County and City Programs

Local governments across Maryland also provide powerful incentives:

Prince George's County - Pathway to Purchase: Up to $10,000 in down payment and closing cost assistance

Montgomery County - Housing Opportunity Commission First Mortgage Program: Competitive loans and down payment support

Baltimore City - Buying Into Baltimore: $5,000 grants through a lottery for eligible buyers

Live Near Your Work: Employer-backed incentives to live close to your job

4. How To Apply

To be eligible for some of the programs, you’ll need to take a home buyer education class. In fact, this is required by the Maryland Mortgage Program. The classes are available online or in person. 

Connect with a Maryland Mortgage Program approved lender-most buyers want to shop lenders for the lowest interest rate. However, often, home buyer programs have specific interest rates locked in for the approval process. When you are connecting with lenders, choose someone who is responsive and experienced with home buying programs.

5. Get Pre-Approved and Start House Hunting

We recommend working with exclusive buyer agents with HomeBuyer Brokerage. Unlike traditional real estate brokerages, all our clients are home buyers. We don’t list homes for sale. We don’t practice dual or designated agency. We offer a straightforward approach to representation in real estate. 

Questions about down payment assistance programs? 

Talk to your trusted lender. Some local grant programs may be forgiven over time. Most Maryland Mortgage Programs are paid when you sell or refinance your home. 

Remember, you are putting together a team of experienced professionals who will collaborate with one goal in mind: to serve your best interests throughout the home buying process. 

Once your team is in place, trust their expertise, respond to their questions promptly, and set yourself up for a smooth and successful home buying journey.

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How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.