First-Time Homebuyer Loan Programs in Maryland – 2025 Guide

Why Choose Maryland for Your First Home?

Maryland is an ideal state for first-time buyers, offering a mix of vibrant cities, scenic landscapes, and strong job markets. With a median home price around $420,000 as of 2025, it’s more affordable than many nearby states like Virginia and New Jersey. Plus, Maryland’s first-time homebuyer programs can significantly reduce upfront costs and ongoing payments, making homeownership more attainable.

Top First-Time Homebuyer Loan Programs in Maryland

1. Maryland Mortgage Program (MMP)

• Overview: The MMP is the flagship home loan program for first-time buyers in Maryland. It offers competitive interest rates, down payment and closing cost assistance, and flexible credit requirements.
• Key Benefits:
  • Down payment assistance up to $15,000 in certain areas
  • Reduced mortgage insurance costs
  • Options for conventional, FHA, VA, and USDA loans
• How to Qualify: Must be a first-time buyer, meet income and purchase price limits, and complete a homebuyer education course.
• Learn More: Buying Your First Home

2. FHA Loans

• Overview: Backed by the Federal Housing Administration, FHA loans are ideal for first-time buyers with less-than-perfect credit or limited savings.
• Key Benefits:
  • Down payments as low as 3.5%
  • Credit score requirements as low as 580
  • Flexible debt-to-income (DTI) ratios
• How to Qualify: Requires a minimum 580 credit score, a 3.5% down payment, and proof of steady income.
• Learn More: FHA Loan

3. VA Loans

• Overview: Available to eligible veterans, active-duty service members, and certain military spouses, VA loans offer significant advantages for first-time buyers.
• Key Benefits:
  • Zero down payment
  • No private mortgage insurance (PMI)
  • Competitive interest rates
• How to Qualify: Must have a valid Certificate of Eligibility (COE) and meet lender-specific credit and income requirements.
• Learn More: VA Loan

4. USDA Loans

• Overview: Designed for rural and suburban homebuyers, USDA loans offer 100% financing for qualified buyers.
• Key Benefits:
  • Zero down payment
  • Low mortgage insurance costs
  • Flexible credit requirements
• How to Qualify: Must meet income and location requirements as determined by the USDA.
• Learn More: USDA Loan

Additional Maryland Homebuyer Assistance Programs

• SmartBuy 3.0: Helps buyers with student loan debt by providing significant debt relief.
• Maryland HomeCredit Program: Provides a federal tax credit that can reduce the overall cost of homeownership.

Frequently Asked Questions (FAQs)

Ready to Start Your Homebuying Journey?

Take the first step by exploring your loan options and finding the best program for your needs. Use our Affordability Calculator to estimate your budget and get pre-qualified today.

Read Next

• Conventional vs. FHA Loan: Which Is Better?
• Buying a House in a Seller’s Market
• How to Qualify for First-Time Home Buyer Grants and Programs

Final Thoughts

Homeownership is within reach, and Maryland offers some of the best first-time buyer programs in the country. Start exploring your options today and make your dream of owning a home a reality.