First-Time Homebuyer Assistance Programs for 2022 in Maryland

Last Updated on August 7, 2022 by Danielle McDonald

Mortgage Assistance for Homebuyers in Maryland

Prince George’s County Purchase Assistance Program (PGCPAP)

Prince George’s County Purchase Aid Program (PGCPAP) is designed to assist people achieve their goal of homeownership. So, they provide eligible first-time homebuyers help in purchasing residential properties in Prince George’s County. 

Available Assistance

Qualified applicants can receive purchase assistance under PGCPAP in the form of a down payment, mortgage principal decrease, and/or closing cost. It has a maximum loan amount of $15,000. An additional grant of $5,000 may be available to police officers, teachers, firefighters, EMTs, or nurses, based on their needs. This loan is also a zero-interest, deferred payment loan. The borrower must repay the loan must when they sell, transfer, or stop using the home as their primary residence.

Eligibility Requirements

Applicants for the PGCPAP must be at least 18 years old or older, and be first-time homebuyers. They must also have a household income not over 120% of area median income, and contribute a minimum of 1.75% of the purchase price. This includes earnest money deposits, inspection fees, appraisal fee, homeowner’s insurance premium, credit reports, termite, housing counseling fee, and HQS Inspection.

Property Guidelines

The following property types are eligible: single-family dwelling units, townhouses and condominiums located in Prince George’s County. All properties bought with funds from PGCPAP must be the borrower’s primary residence.

ACDS Mortgage Assistance

Arundel Community Development Services, Inc. provides assistance to eligible applicants in the form of funds to help with their down payment.

Available Assistance 

Maximum assistance funds available through the program are limited to $20,000. Then, the Mortgage Assistance Program funds can be used to help with closing costs, down payments, and/or mortgage writing downs.

Eligibility Requirements 

To help with the down payment and settlement costs, the Mortgage Assistance Program (MAP), provides deferred loans of up to $20,000 to first-time homebuyers in Anne Arundel County. Participants must have completed the ACDS Homeownership Counseling program and must contribute at least one percent (1%) to the sale price of their own funds. The applicant’s money can include, but is not limited to, appraisals, prepaids, credit reports and home inspections. Application fees can also be counted towards the one-percent (1%).

Income Limitations 

The annual household income of applicants must be at least 80% of the area’s median income

  • 1-person household: $55,950 
  • 2-person household: $63,950
  • 3-person household: $71,950 
  • 4-person household: $79,900 
  • 5-person household: $86,300 
  • 6-person household: $92,700 

Gaithersburg Homebuyer Assistance Loan Program

Gaithersburg Homebuyer Assistance Loan Program offers closing cost and down payments assistance to first-time homebuyers who live within corporate limits of the City.

Available Assistance 

GHALP is a program that allows eligible individuals to receive up to 10% in assistance funds. This aid is also in the form of a deferred, zero-interest loan. Additionally, applicants will need to sign a promissory notice and a second deed-of-trust on its settlement.

Funding maximums are established according to property location:

  • Standard Zone: Up to $12,00 
  • Opportunity Zone: $25,000 

Eligibility Requirements 

GHALP is available only to first-time homebuyers that have lived in or worked in Gaithersburg for at most one year before the date of application. However, this restriction does NOT apply to priority populations: City of Gaithersburg employees (full-time or part-time), police officers, firefighters, veterans, or other employees.

The applicants must also meet the program’s annual income limits. Additionally, priority applicants can receive assistance up to 120% AMI. However, other applicants (City residents and employed within the City limits), must have incomes below 100% AMI (limits below).

Income Limitations 

100% AMI 
  • 1-person household: $90,300 
  • 2 -person household: $103,200 
  • 3 -person household: $116,100 
  • 4 -person household: $129,000 
  • 5 -person or more household: $139,320 
120% AMI 
  • 1-person household: $108,360 
  • 2 -person household: $123,840 
  • 3 -person household: $139,320 
  • 4 -person household: $154,800 
  • 5 -person or more household: $167,184 

Home Stretch Down Payment Assistance Program

The City of Takoma Park provides income-eligible first-time homebuyers with down payment assistance through the Home Stretch program.

Available Assistance 

The Home Stretch, offers financial assistance up to $10,000 to families and individuals who are eligible to purchase their first home. Additionally, this assistance comes in the form of a zero-interest deferred loan, which is forgiven at 20% each year after the first year.

Eligibility Requirements 

All applicants who apply for the Home Stretch program must be a first-time buyer, which is someone who hasn’t owned property within the past five years, according to Takoma Park. Then, the program’s income limit is determined by an adjusted percentage of Montgomery County’s Area Median Income (AMI), as published by HUD. Before receiving assistance, they must complete a City of Takoma Park approved homebuyer education course.

Property Guidelines

The home must be the borrower’s primary residence and it must also be in Takoma Park. Borrowers may purchase single-family detached or attached homes or condominiums as long as they pass a certified home inspection.

Income Limitations 

  • 1-person household: $72,240 
  • 2 -person household: $82,560 
  • 3 -person household: $92,880 
  • 4 -person household: $103,200 
  • 5 -person household: $111,456 
  • 6 -person household: $119,712 
  • 7 -person household: $127,968 
  • 8 -person household: $136,224 

This programme is quite different from the First-Time Homebuyer Assistance Programs in Maine, the state of Maine decided to go in a different path to assist the First-Time Homebuyers.

Maryland Mortgage Program

Anyone who has a Maryland Mortgage Program (MMP), can apply for the Down Payment Assistance program. So, this program helps to make a down payment on the property, pay closing costs, and satisfy any prepaid/escrow fees.

Available Assistance

The Maryland Mortgage Program loan offers additional assistance through partner match programs, which provide additional down payment or closing cost assistance to qualified borrowers. However, participants provide the agreed amount of assistance to qualified borrowers who meet their criteria. Then, the MMP matches funds dollar-for-dollar up to $2,500. This is in the form of a zero-interest deferred loan that can be repaid when the home is sold, transferred or paid off.

Combine the Partner Match funds with basic MMP Down payment funds, or assistance from other programs and jurisdictions. These partners could be builders, community organizations, employers, and builders. Additionally, these organizations typically contribute $1,000 to $5,000 per contribution. You can also combine it with Down Payment Assistance loans if they meet the eligibility criteria. These programs are also available to many borrowers.

Many local governments in Maryland also offer assistance to help you purchase a house. These agencies also often partner with community organizations and employers to offer local assistance. To help with your upfront homeownership costs, you can combine this assistance with the Department’s Partner Match Programs and Down Payment Assistance.

Are you interested in the First-Time Homebuyer Assistance Programs in Massachusetts?

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