Maryland Mortgage Program (MMP) Guide

Guide to the Maryland Mortgage Program (MMP)

The Maryland Mortgage Program (MMP) offers affordable mortgage loans to help Maryland residents achieve homeownership. The program provides access to low-interest loans, down payment assistance, and other resources to make homeownership more attainable for individuals and families. For 2025, the program continues to offer flexible options, including tailored assistance for first-time homebuyers and low-income households. Below is a detailed guide to help you understand how the MMP works and how to apply.

1. Program Overview:

• Purpose: The Maryland Mortgage Program (MMP) aims to make homeownership affordable for residents of Maryland by providing low-interest mortgage loans and financial assistance. The program is designed to benefit first-time homebuyers, low-income families, and those who need assistance covering upfront costs like down payments and closing fees.
• Loan Terms: MMP offers various loan types with competitive fixed interest rates. The loan terms are typically 30 years, ensuring predictable monthly payments. The program also includes options for both conventional and government-backed loans, such as FHA, VA, and USDA loans.
• Assistance Options: The program offers down payment assistance and closing cost assistance, which can be combined with the mortgage loan to reduce the financial burden of purchasing a home. This assistance is structured as a second mortgage, which may be deferred or forgiven under certain conditions.

2. Eligibility Requirements for 2025:

To qualify for the Maryland Mortgage Program, applicants must meet the following criteria:

• Income Limits: The program has income limits that vary depending on the household size and location within Maryland. These limits ensure that the program helps moderate-income buyers who need assistance with the costs of homeownership.
• First-Time Homebuyer: The MMP is primarily designed for first-time homebuyers, defined as individuals who have not owned a home in the past three years. However, there are exceptions for certain applicants, such as those purchasing in designated target areas or veterans.
• Credit Score: A minimum credit score of 640 is generally required to qualify for the Maryland Mortgage Program. Some programs may have stricter credit score requirements, so it’s important to check with a participating lender.
• Property Requirements: The home must be located in Maryland and must be used as the applicant’s primary residence. The property must also meet certain price limits based on the county or city in which it is located.
• Homebuyer Education: All applicants must complete a homebuyer education course approved by the Maryland Department of Housing and Community Development (DHCD). The course helps prepare buyers for the responsibilities of homeownership and provides valuable financial management skills.

3. How to Apply:

To apply for the Maryland Mortgage Program, follow these steps:

• Find a Participating Lender: The Maryland Mortgage Program works through a network of approved lenders. You will need to contact one of these lenders to begin the application process. A participating lender will verify your eligibility, help gather the required documentation, and guide you through the steps of applying.
• Required Documentation: Be ready to provide documents such as proof of income, tax returns, credit reports, and the homebuyer education course certificate.
• Submit Your Application: Once your documentation is complete, submit your application to your lender. The lender will process your application and keep you informed about the approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: Completion of an approved homebuyer education course is mandatory for all applicants. The course will teach important information about budgeting, managing mortgage payments, and maintaining homeownership.
• Course Options: The homebuyer education course is available online and in-person. After successfully completing the course, you will receive a certificate, which is required for your loan application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The Maryland Mortgage Program offers various down payment and closing cost assistance options, which can help reduce the upfront costs of purchasing a home. Eligible homebuyers can receive up to $5,000 in assistance, depending on the program and their financial needs.
• Deferred Loan Terms: The down payment and closing cost assistance is typically provided as a second mortgage, which may be deferred or forgiven. No monthly payments are required on the assistance, and the loan is repaid when the home is sold, refinanced, or paid off.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, the lender will guide you through the final steps of the process, including signing loan documents and preparing for closing.
• Closing Costs: While the program helps with down payments and closing costs, you may still be responsible for some fees. Your lender will explain all costs involved and what is covered by the program.

The Maryland Mortgage Program offers comprehensive support for eligible homebuyers, helping make the path to homeownership more affordable. Our dedicated team of loan officers will assist you throughout the process, ensuring you have the support and guidance you need to navigate the program and secure the best mortgage for your needs. With the Maryland Mortgage Program, you can take a significant step toward owning a home in Maryland.