Earning a Modest Income? Maryland Has a Program Built Around You.
Many hardworking Maryland households earn steady paychecks but still struggle to save thousands for a down payment.
Rent keeps rising. Savings grow slowly. Buying a home starts to feel out of reach.
That is where Maryland HomeStart comes in. It offers one of the largest percentage-based down payment assistance options in the Maryland Mortgage Program for buyers at lower income levels.
👉 Take the 60-Second Quiz to see if HomeStart could fit you.
What Is Maryland HomeStart?
HomeStart is a down payment assistance option within the MMP 1st Time Advantage program. It is designed for households earning at or below 50% of Area Median Income (AMI).
It provides a second loan equal to 6% of your MMP total loan amount to help with down payment and closing costs.
How Much Can HomeStart Provide?
Because it is based on a percentage, the amount grows with your loan:
- $200,000 total loan → about $12,000 in assistance
- $250,000 total loan → about $15,000 in assistance
- $300,000 total loan → about $18,000 in assistance
On an FHA loan, that can cover the full 3.5% down payment and leave money for closing costs.
Do You Have to Pay HomeStart Back?
Yes, but not monthly. HomeStart is a 0% interest, 30-year deferred loan.
- No monthly payments
- No interest
- Repaid when you sell, refinance, transfer the home or pay off the first mortgage
It is not forgivable, but it costs nothing while you live in the home and keep your first mortgage.
Who Qualifies for Maryland HomeStart?
Buyers generally need to:
- Have household income at or below 50% of AMI for their county and household size
- Use an MMP 1st Time Advantage first mortgage
- Be a first-time homebuyer (no home owned in the past three years), with exceptions for Targeted Areas and eligible veterans
- Complete an approved homebuyer education class
- Meet MMP credit and purchase price limits
- Keep liquid assets below 20% of the purchase price
- Live in the home as a primary residence
Household income counts every household member age 18 or older, and limits vary by county. Your lender will confirm the exact limit for your area.
Is HomeStart Better Than a Flat $6,000?
Often, yes, if you qualify. On any loan above $100,000, 6% is more than the flat $6,000 offered by 1st Time Advantage 6000.
But every situation is different. If you have employer or builder assistance, a $6,000 option with Partner Match may come out ahead. Compare totals before choosing.
Where HomeStart Can Make a Difference
HomeStart can help bring homes within reach in areas like:
- Baltimore City and Baltimore County
- Hagerstown and Cumberland
- Salisbury and the Eastern Shore
- Glen Burnie and Dundalk
- Waldorf and Lexington Park
FAQ
What is Maryland HomeStart?
A Maryland Mortgage Program down payment assistance option for buyers at or below 50% of Area Median Income.
How much is HomeStart assistance?
6% of your MMP total loan amount, as a 0% deferred second loan.
Is HomeStart a grant?
No. It is repaid when you sell, refinance, transfer the home or pay off the first mortgage.
How do I know if I am under 50% of AMI?
Limits depend on your county and household size. An MMP-approved lender can confirm your numbers.
Can I use HomeStart with an FHA loan?
MMP first mortgages include FHA options, and your lender can confirm which loan types fit HomeStart.
Why Maryland Buyers Work With Joe Salem’s Team
Program rules change. Funding windows open and close. Lenders and loan types have to line up just right.
- Experience with FHA, VA, conventional and Maryland Mortgage Program financing
- Guidance on stacking state, county and employer assistance the right way
- In-house real estate support from Dave Wheaton to help structure strong offers
- Clear answers before you sign anything
Stop Guessing. Start Qualifying.
You do not need to read program PDFs line by line. In about 60 seconds, we can help you see which Maryland programs may fit your income, county and loan type.
👉 Take the 60-Second Maryland Down Payment Assistance Quiz
Program details are based on Maryland Mortgage Program information published by the Maryland Department of Housing and Community Development at the time of writing. Terms, rates, limits and funding can change at any time, and not every buyer will qualify. This article is general information, not a commitment to lend or an offer of credit. Maryland Down Payment Assistance is not a government agency or non-profit. Joe Salem, NMLS #180651. Equal Housing Opportunity.