Maryland Mortgage Program
Maryland Mortgage Program (MMP)
The Maryland Mortgage Program (MMP) provides conventional fixed rate home loans to eligible homebuyers purchasing in Maryland. Loan terms are competitive with other home loan products on the market, but what makes MMP unique is the range of associated financial incentives and other assistance that, for many homebuyers, means the difference between being able to purchase and continuing to rent. MMP down payment assistance can only be obtained with an MMP first mortgage; it is not a standalone option.
Student Loan Debt Assistance
Maryland SmartBuy is a program that makes selected state-owned homes available for sale, and allows eligible homebuyers to use special MMP financing to pay off their outstanding student debt as part of the home purchase. Other programs may be available for limited times for targeted locations or eligible groups.
Down Payment and Closing Cost Assistance
Down payment and closing cost assistance is money that you can use to meet the requirements for securing a home loan, and which makes the purchase a of a home more affordable. Funds available for down payment and closing costs may be provided in the form of a grant or as a deferred, no-interest loan.
Montgomery Homeownership Program (MHP):
- May be used by any MMP-eligible borrower purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage equal to 40% of the household income with a maximum amount of $25,000 for down payment and closing cost assistance.
- Any funds not needed for down payment or closing costs will be applied to principal curtailment (no cash-out).
- Second mortgage has a zero percent interest rate and repayment is deferred until sale, refinance, transfer, or 30 years, whichever happens first.
- The minimum down payment is set by the insurer, and the second mortgage funds can be used for the borrower contribution.
- Fact Sheet: Click Here
Montgomery Employee DPA Loan (MEDPAL):
- May be used by approved Montgomery County employees purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage of $25,000.
Any funds not needed for down payment or closing costs will be applied to principal curtailment.
- Second mortgage has a zero percent interest rate. It can be re-subordinated in the event of a non-cash out refinance (must be repaid in the event of a cash-out refinance) and must be repaid if the property is sold or transferred. At the end of 30 years, the loan is forgiven if not already paid off.
- The minimum down payment is set by the insurer, and the borrower must provide at least 1% of the purchase price with their own funds in addition to the second mortgage.
- Fact Sheet: Click Here