Up To $5,000 Down Payment Assistance From Maryland Department of Housing and Community Developmen​t

Get Funding For Your Down Payment

If you’re looking for down payment assistance in Maryland, there’s plenty of aid available. The Maryland Department of Housing and Community Developmen​t (MDHCD) offers up to $5,000 for first time property purchasers who need help coming up with the funds for the down payment.

Maryland Down Payment Assistance
Maryland Down Payment Assistance

From the MDHCD website:

Down Payment Assistance and Partner Match Programs

Coming up with the money for a down payment and other upfront costs is often the largest hurdle facing first-time homebuyers. Even with certain mortgages that require low down payments, these expenses will still usually total several thousand dollars.

The Maryland Mortgage Program provides help in the form of Down Payment Assistance, as well as a range of Partner Match programs from employers, developers and community organizations that can help you cover these down payment and closing costs.  These programs may make it possible for first-time homebuyers to afford a mortgage when they would not be able to do so the conventional way.

How Down Payment Assistance & Partner Match Programs Help You

Down Payment Assistance and Partner Match Programs may be used for things like down payment, closing costs, and prepaid/escrow expenses, and may be available in the form of zero-interest deferred loans, forgivable loans, or outright cash grants:

  • Zero-interest deferred loans are due upon sale or transfer of the property or if the first  mortgage is refinanced or paid in full, and do not accrue interest over time (if you borrow $5,000 now to help with your down payment, you would repay  $5,000 when due – perhaps as far away as 30 years if that is how long you are making payments on the primary mortgage);
  • Forgivable loans are (in most cases) loans that diminish over time, based on you continuing to make payments on your primary mortgage and staying in your home for a pre-determined period.  In a typical case, a loan of $2,500 would drop $500 each year for five years, so that if you lived in your home for this period, you would not have to pay it back at all.  However, if you had decided to move after 2 years, you would be required to pay back $1,500 (the original $2,500 loan less $500 for each year you stayed).
  • A cash grant is provided by some Partner Organizations, and does not require you to ever pay back the money.

Maryland Mortgage Program’s Down Payment Assistance Program

The Maryland Mortgage Program features Down Payment Assistance, which is an additional loan available to anyone who is eligible for a Maryland Mortgage Program mortgage, helps borrowers put together a suitable down payment on their home. This loan, which can be up to $5,000, is a zero percent deferred loan, which means that you only ever pay back the principal (there’s no interest) after you complete all payments on the main Maryland Mortgage Program mortgage, or if you refinance, sell or otherwise vacate the home.

For complete details on this DPA program, details on other Partner Match programs, and to get the application process started, please go to this MDHCD webpage.

More Maryland Down Payment Assistance

In addition to this statewide down payment aid program, you should also check to see if there are local first time home buyer programs offered in Maryland that provide additional help which can be applied toward your down payment.