Maryland changed its down payment assistance limits on 24 June 2026. Every income limit and purchase price cap in the Maryland Mortgage Program moved on that date, under Directive 2026-04. Most guides ranking for this topic still publish the old numbers, and several publish figures that expired three years ago.
This page carries the current limits for all 24 Maryland jurisdictions, taken directly from the state’s own limits chart, along with what each assistance product actually pays and the repayment rule that catches most buyers out.
What changed on 24 June 2026
The Maryland Department of Housing and Community Development issued Directive 2026-04, “2026 MMP Income and Purchase Price Limits”, on 30 June 2026. It applies to loans reserved in Lender Online on or after 24 June 2026.
A second directive matters if you are looking at the income-restricted products. Directive 2026-06, issued 2 July 2026, sets the 50% and 80% area median income limits that gate the HomeStart and HomeAbility products. Those AMI limits sit on top of the jurisdictional income limits below, not instead of them.
Here is the scale of the drift on pages currently ranking for Maryland down payment assistance. One widely cited guide lists income limits of “$124,500 to $210,980” and mortgage limits of “$472,030 to $726,200”. The real income range is $137,100 to $232,540. And $472,030 and $726,200 are the 2023 FHA floor and the 2023 conforming loan limit — not Maryland figures at all, and three years out of date. That page carries no date anywhere on it.
How much assistance you can actually get
Maryland does not have one down payment assistance program. It has two product lines plus several specialty programs, and the amount depends on which one you use.
| Product | Assistance | Structure |
|---|---|---|
| 1st Time Advantage 6000 | $6,000 flat | 0% deferred second lien |
| 1st Time Advantage 3% / 4% / 5% | 3%, 4% or 5% of the first mortgage | 0% deferred second lien |
| HomeStart | 6% of the first mortgage | 0% deferred second lien, income capped at 50% AMI |
| Flex 6000 | $6,000 flat | 0% deferred second lien, repeat buyers allowed |
| Flex 3% | 3% of the first mortgage | 0% deferred second lien, repeat buyers allowed |
| HomeAbility | Up to 25% of purchase price, max $45,000 | 0% deferred second lien, disability requirement, 80% AMI cap |
| Montgomery Homeownership Program | Up to $50,000 | 0% deferred second lien, Montgomery County only |
| MEDPAL | $50,000 | 0% second lien, Montgomery County employees only |
| Partner Match | Up to $2,500 additional | Matches partner funds, 6000 products only |
One percentage detail that changes the maths. The 3%, 4%, 5% and 6% products are calculated on the first mortgage amount, not the purchase price. On a $400,000 home with a $388,000 loan, the 5% product pays $19,400, not $20,000. Small difference, but guides that describe it as a percentage of the purchase price are overstating it.
The Montgomery figure is where most sources go badly wrong. The Montgomery Homeownership Program is a second mortgage of up to $50,000, capped so it does not exceed 40% of household income. A commonly cited guide puts it at $25,000 — half the real amount.
2026 Maryland Mortgage Program income limits by county
Income limits depend on your jurisdiction, your household size, and whether the property sits in a targeted area. Targeted areas carry more generous limits. Baltimore City is targeted in its entirety; several counties have no targeted census tracts at all, shown below as N/A.
All figures effective 24 June 2026.
| Jurisdiction | Standard, 1–2 people | Standard, 3+ people | Targeted, 1–2 people | Targeted, 3+ people |
|---|---|---|---|---|
| Allegany | N/A | N/A | $164,520 | $191,940 |
| Anne Arundel | $140,759 | $161,873 | $164,520 | $191,940 |
| Baltimore City | N/A | N/A | $164,520 | $191,940 |
| Baltimore County | $140,759 | $161,873 | $164,520 | $191,940 |
| Calvert | $190,320 | $222,040 | N/A | N/A |
| Caroline | N/A | N/A | $164,520 | $191,940 |
| Carroll | $140,759 | $161,873 | N/A | N/A |
| Cecil | $137,100 | $157,665 | N/A | N/A |
| Charles | $199,320 | $232,540 | N/A | N/A |
| Dorchester | N/A | N/A | $164,520 | $191,940 |
| Frederick | $199,320 | $232,540 | $199,320 | $232,540 |
| Garrett | N/A | N/A | $164,520 | $191,940 |
| Harford | $140,759 | $161,873 | $164,520 | $191,940 |
| Howard | $140,759 | $161,873 | N/A | N/A |
| Kent | N/A | N/A | $164,520 | $191,940 |
| Montgomery | $199,320 | $232,540 | $199,320 | $232,540 |
| Prince George’s | $199,320 | $232,540 | $199,320 | $232,540 |
| Queen Anne’s | $140,759 | $161,873 | N/A | N/A |
| St. Mary’s | $141,600 | $162,840 | N/A | N/A |
| Somerset | N/A | N/A | $164,520 | $191,940 |
| Talbot | $137,100 | $157,665 | $164,520 | $191,940 |
| Washington | $137,100 | $157,665 | $164,520 | $191,940 |
| Wicomico | $137,100 | $157,665 | $164,520 | $191,940 |
| Worcester | $137,100 | $157,665 | $164,520 | $191,940 |
Household size affects your income limit only. It does not change the purchase price ceiling.
Maryland purchase price limits for 2026
There are two separate ceilings, and confusing them is the most common error in Maryland guides. The maximum acquisition cost caps what the house can cost. The CDA maximum mortgage limit caps what you can borrow. They are different numbers, and both apply.
| Jurisdiction | Max acquisition cost, standard | Max acquisition cost, targeted | CDA maximum mortgage |
|---|---|---|---|
| Allegany | N/A | $692,211 | $541,287 |
| Anne Arundel | $782,118 | $955,922 | $747,500 |
| Baltimore City | N/A | $955,922 | $747,500 |
| Baltimore County | $782,118 | $955,922 | $747,500 |
| Calvert | $1,255,921 | N/A | $832,750 |
| Caroline | N/A | $692,211 | $541,287 |
| Carroll | $782,118 | N/A | $747,500 |
| Cecil | $659,385 | N/A | $630,200 |
| Charles | $1,306,974 | N/A | $832,750 |
| Dorchester | N/A | $692,211 | $541,287 |
| Frederick | $1,306,974 | $1,597,413 | $832,750 |
| Garrett | N/A | $692,211 | $541,287 |
| Harford | $782,118 | $955,922 | $747,500 |
| Howard | $782,118 | N/A | $747,500 |
| Kent | N/A | $692,211 | $541,287 |
| Montgomery | $1,306,974 | $1,597,413 | $832,750 |
| Prince George’s | $1,306,974 | $1,597,413 | $832,750 |
| Queen Anne’s | $782,118 | N/A | $747,500 |
| St. Mary’s | $566,354 | N/A | $541,287 |
| Somerset | N/A | $692,211 | $541,287 |
| Talbot | $566,354 | $692,211 | $541,287 |
| Washington | $566,354 | $692,211 | $541,287 |
| Wicomico | $566,354 | $692,211 | $541,287 |
| Worcester | $566,354 | $692,211 | $541,287 |
The CDA mortgage limit is the lesser of the maximum acquisition cost or the FHA Forward One-Family limit, and it cannot exceed $832,750 anywhere in Maryland.
Who qualifies for Maryland down payment assistance
Credit score: 640. Not 620. The Maryland Mortgage Program requires a minimum 640 middle score for conventional, FHA, VA and USDA loans alike — there is no lower tier for government loans, contrary to what several guides state. Maryland SmartBuy 3.0 is the exception at 720.
Debt-to-income: 680 is a threshold, not a floor. The maximum DTI is 45% if your score is under 680, rising to 50% at 680 or above, provided automated underwriting returns Approve/Eligible. The 680 figure that circulates as a “credit requirement” is this DTI gate being misread.
Homebuyer education is mandatory for everyone. Not just first-time buyers — all borrowers except those refinancing must complete it. Two separate deadlines apply: the class must be done before loan approval, and the certificate must have been issued within 12 months prior to settlement. Any class approved by HUD, a private mortgage insurer, Fannie Mae or Freddie Mac qualifies, including online options.
First-time buyer status depends on the product line. The 1st Time Advantage line requires it, with exceptions for buyers who have not owned a home in three years, purchases in targeted areas, and honorably discharged veterans. The Flex line is open to repeat buyers, provided you do not own other real property at closing.
The repayment rule most guides get wrong
Maryland’s standard down payment assistance is described almost everywhere as a “0% loan”, which is accurate but incomplete. Deferred is not the same as forgiven.
The 1st Time Advantage 6000, Flex 6000, the percentage products and HomeStart are all zero-interest second liens with no monthly payment. But the balance becomes due in full the moment the first mortgage ends — sale, transfer, refinance or payoff. There is no forgiveness schedule. Refinancing to a better rate in year four triggers repayment of the entire amount.
Two Maryland products genuinely do forgive:
- Maryland SmartBuy 3.0 — forgiven at 20% per year over five years.
- MEDPAL — forgiven at 30 years if not already repaid.
The Montgomery Homeownership Program looks like it forgives but does not. It defers until sale, refinance, transfer, or 30 years, whichever comes first — and at the 30-year mark it becomes due, not written off.
Income-restricted products: HomeStart and HomeAbility
Two products carry AMI caps under Directive 2026-06, and both stack on top of the county limits above rather than replacing them.
HomeStart pays 6% of the first mortgage — the largest percentage Maryland offers — but requires household income at or below 50% of area median income. It is not eligible for Partner Match.
HomeAbility pays up to 25% of the purchase price to a maximum of $45,000, with a combined loan-to-value ceiling of 105%. It requires a documented disability, or that you are the guardian or primary caregiver of a family member with a disability living with you, and combined qualifying income at or below 80% of AMI.
Montgomery County: the $50,000 programs
Montgomery County runs the two largest assistance amounts in Maryland, both in partnership with the state.
The Montgomery Homeownership Program provides a second mortgage of up to $50,000, capped at 40% of household income, with anything above the need applied to principal. It cannot be combined with Partner Match funds.
MEDPAL, the Montgomery Employee Down Payment Assistance Loan, provides $50,000 to approved county employees buying in Montgomery County. It carries its own Workforce Housing Income Limits in addition to the standard MMP limits, and requires the borrower to contribute at least 1% of the purchase price from their own funds.
Stacking assistance with Partner Match
If your employer, builder, a community organization or a local government contributes toward your purchase, Maryland matches it dollar for dollar up to $2,500. Combined with a 6000 product, that produces $8,500 in a single zero-interest deferred loan.
Partner Match works only with the 1st Time Advantage 6000 and Flex 6000. The percentage products, HomeStart and the Montgomery Homeownership Program are all excluded.
How to apply
- Check your county limit in the tables above, against your household size and whether the property is in a targeted area.
- Confirm your middle credit score is at least 640, or 720 if you are considering SmartBuy.
- Complete homebuyer education through a HUD, mortgage insurer, Fannie Mae or Freddie Mac approved provider — before you seek loan approval.
- Contact an MMP approved lender. Maryland does not lend directly; every MMP loan is originated through a participating lender.
- Choose your product line with your lender: 1st Time Advantage if you qualify as a first-time buyer, Flex if you do not.
Frequently asked questions
How much down payment assistance can you get in Maryland?
Between $6,000 and $50,000 depending on the product. The standard options are $6,000 flat, or 3% to 6% of the first mortgage amount. HomeAbility pays up to $45,000 for buyers with disabilities, and Montgomery County’s two programs pay up to $50,000.
What is the income limit for the Maryland Mortgage Program?
It ranges from $137,100 to $232,540 depending on your county, household size and whether the property is in a targeted area. Effective 24 June 2026, the lowest limits apply in Cecil, Talbot, Washington, Wicomico and Worcester counties, and the highest in Montgomery, Prince George’s, Charles and Frederick.
What credit score do you need for Maryland down payment assistance?
640 for conventional, FHA, VA and USDA loans alike. Maryland SmartBuy 3.0 requires a 720 middle score. A score of 680 or above raises your maximum debt-to-income ratio from 45% to 50%, but 680 is not a minimum requirement.
Do you have to pay back Maryland down payment assistance?
Usually yes. The standard products are zero-interest deferred second liens with no monthly payment, but the full balance is due when you sell, transfer, refinance or pay off the first mortgage. Only SmartBuy 3.0 and MEDPAL are genuinely forgivable.
Can repeat buyers get down payment assistance in Maryland?
Yes, through the MMP Flex line, which is open to repeat buyers provided you do not own any other real property at closing. The 1st Time Advantage line is restricted to first-time buyers, with exceptions for three years without ownership, targeted area purchases, and honorably discharged veterans.
Maryland is not the only state where the published figures have drifted. Michigan reset its limits on 1 June 2026, and the guide ranking third for MSHDA’s income limits still shows a sales price cap of $224,500 against a real figure of $566,355 — see our Michigan down payment assistance guide.
Sources and effective dates
- Directive 2026-04, 2026 MMP Income and Purchase Price Limits — issued 30 June 2026, effective 24 June 2026.
- Attachment III, Maryland Mortgage Program Limits — 2026 income limits, maximum acquisition costs and CDA maximum mortgage limits.
- Directive 2026-06, 2026 50% and 80% Area Median Income Limits — issued 2 July 2026.
- MMP Quick Reference Sheet — credit score and DTI requirements.
- Maryland Mortgage Program down payment assistance — product lineup.
- MMP homebuyer education requirement.
Figures on this page were verified against Maryland’s primary program documents on 30 July 2026. The Housing Signal is an independent publisher, not a lender or mortgage broker. This is general information, not personalized financial advice. Program terms change; confirm current figures with an MMP approved lender before making decisions.