Unlocking Homeownership in Maryland: Programs to Support First-Time and Repeat Buyers

Buying a home is one of the most significant milestones in life, but for many buyers in Maryland, the journey can seem overwhelming. Fortunately, Maryland offers a wide range of programs to help home buyers. 

Whether you’re looking for assistance with your down payment, access to more flexible mortgage options, or special opportunities through county-level offers, there are programs designed to make homeownership more attainable.

Here are some of the key homebuyer assistance programs available in Maryland and how they can benefit you.

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Maryland Mortgage Program MMP

The Maryland Mortgage Program MMP, backed by the state’s Department of Housing and Community Development, offers a variety of financial products designed to help home buyers meet their goals. MMP programs aim to make homeownership more accessible by providing loans, grants, and tax incentives. Below are some of the major MMP offerings.

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MMP Smart Buy 3.0

If you're burdened with student loan debt, the MMP Smart Buy 3.0

https://mmp.maryland.gov/Pages/SmartBuy/default.aspx program may be just what you need to take your first steps toward homeownership. This program allows qualified home buyers to purchase a home and simultaneously eliminate up to $50,000 in student loan debt.

To qualify, the total student loan balance must be at least $1,000, and the entire student loan balance must be paid off at the time of the home purchase. This unique program opens the door to homeownership for individuals who may otherwise feel locked out due to student debt.

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MMP 1st Time Advantage

The MMP 1st Time Advantage

https://mmp.maryland.gov/Pages/1stTimeAdvantage.aspx program is specifically designed for first-time buyers. It offers competitive interest rates and can be paired with down payment and closing cost assistance. It’s a straightforward path to homeownership that provides low-cost financing options, making it a great fit for those just starting out in the housing market.

One of the benefits of the 1st Time Advantage program is its flexibility. You can choose between various loan products that suit your financial situation, giving you options.

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MMP Flex Loans

If you’re looking for more flexibility, MMP Flex Loans

https://mmp.maryland.gov/Pages/FlexLoans/default.aspx offer a variety of products that can be tailored to your specific needs. This includes loans with or without down payment assistance. Flex Loans can be combined with other MMP products to give you the best possible mortgage solution.

The Flex Loan programs are ideal for buyers who may have different financial needs, whether that’s securing the lowest monthly payment or getting the assistance necessary to cover upfront costs like the down payment and closing fees.

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MMP HomeAbility

For buyers with disabilities, the MMP HomeAbility

https://mmp.maryland.gov/Pages/HomeAbility/default.aspx program offers additional support. This program provides a mortgage with favorable terms and may include down payment and closing cost assistance. It’s aimed at assisting individuals with disabilities who can own a home that meets their unique needs.

If you or a family member has a disability and dreams of homeownership, HomeAbility is specifically designed to remove the financial barriers that may prevent you from purchasing a suitable home.

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Freddie Mac Programs

Freddie Mac provides many mortgage options designed to cater to both first-time and repeat home buyers, with an emphasis on affordability and flexibility.

Home Possible Mortgage

The Home Possible mortgage

https://sf.freddiemac.com/working-with-us/affordable-lending/guide-to-home-possible-mortgage is tailored for low- to moderate-income borrowers. It offers low down payment options, as low as 3%, flexible credit score requirements, and the ability to include different types of income, such as rental or roommate income, when calculating loan eligibility.

This program helps broaden access to homeownership for those who might struggle to save for a large down payment while also making the approval process more accessible.

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HomeOne Mortgage

Another option from Freddie Mac is the HomeOne Mortgage

mortgage, which is geared toward first-time home buyers. Like Home Possible, it also allows for a 3% down payment but with fewer income restrictions. This program is particularly helpful for younger buyers or those who are just beginning their careers and may not yet have a large income.

With HomeOne, the goal is to create a path to homeownership for more people, enabling access to buying a home is not just a privilege for the few.

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Montgomery County Programs

If you're looking to settle in Montgomery County, you’re in luck. The county offers targeted programs to help home buyers.

Montgomery County Homeownership Assistance Fund

The Montgomery County Homeownership Assistance Fund provides grants of up to $25,000 to eligible home owners in Montgomery County. These grants can be used to cover down payment and closing costs, making it easier for buyers to enter the market without draining their savings.

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Montgomery County's MPDU Program

https://www.montgomerycountymd.gov/DHCA/housing/singlefamily/mpdu/index.html provides affordable housing units at below-market prices for eligible buyers. MPDU units are available to first-time buyers with moderate incomes and can be a great opportunity for those looking to buy in this high-cost area.

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The Montgomery Mortgage Purchase Program MPP

https://www.hocmc.org/housing-opportunities/homeownership/the-mortgage-purchase-program/ offers a variety of financing options to home buyers in Montgomery County. This includes access to competitive interest rates, down payment assistance, and more.

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Workforce Housing Program

The Workforce Housing Program

https://www.montgomerycountymd.gov/DHCA/housing/singlefamily/workforce/ is another initiative designed to offer affordable housing options. It targets individuals in certain occupations, such as healthcare workers, teachers, and first responders, making it possible for them to live closer to their places of work. The program helps bridge the gap for those who may not qualify for traditional low-income housing but still need financial support to afford a home in Montgomery County.

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Habitat for Humanity of Metro Maryland

Habitat for Humanity of Metro Maryland

https://habitatmm.org/home-purchase/ offers homeownership opportunities for low- and moderate-income individuals. This organization gives an affordable pathway to owning a home by working with buyers to reduce upfront costs. If you're committed to partnering with an organization that promotes community building and affordable housing, Habitat for Humanity may be a perfect fit.

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HomeBuyer Brokerage Advice

Homeownership in Maryland doesn't have to be a distant dream. Whether you’re a first-time buyer, dealing with student loans, or living with a disability, there’s a program to help you achieve your goal. 

With the variety of resources available, including the Maryland Mortgage Program, Freddie Mac mortgages, and county-level initiatives, the path to owning your own home is more accessible than ever.

At HomeBuyer Brokerage, we are always available to answer your questions about the home buying process. 

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Final Thought

I recently spoke with a woman who thought her situation was unique—she needs to sell her condo before buying a new home. She was concerned the coordination of selling one place and buying another would be complicated and too difficult. However, this is a common scenario, and we’re here to help make the transition as smooth and stress-free as possible.

While we don’t handle the sale of homes directly, we collaborate closely with listing agents to ensure the timing of your move works seamlessly. Sometimes this involves a post-occupancy agreement, where the buyer allows the seller to stay in the home for a short period (usually less than two months) after settlement. Other times, we help time the closings so you can move from one home to the next without a hitch.

No matter your situation, we're here to work with you and make the process as easy as possible. Reach out today with any questions, and let's start your 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.