• Sarah Lipkowitz

First-Time Home Buyer Programs In Maryland

Updated: Nov 4, 2019

Maryland offers a number of incentives to first-time homebuyers. There are two programs that buyers looking to purchase a home in Maryland should be aware of—the Maryland Mortgage Program and the Maryland First-Time Homebuyer Tax Credit. The former offers a number of different programs each year to incentivize homeownership. The definitions of a first-time home buyer vary depending on the program so it is important to do a bit of research and go over options with a local lender.

Maryland Mortgage Program. The MMP defines first-time home buyers as those who have not owned a home in the state of Maryland in the last 3 years. I am a real estate agent in Montgomery County so I am excited about the Maryland Mortgage Program’s Montgomery Homeownership Program IV which offers up to $25,000 in down payment assistance and is available to both first-time homebuyers and repeat home buyers (so long as they don’t own any real property at the time of closing).

Here are some of the 2019 programs available to buyers:

Maryland SmartBuy: “This program 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.”

Maryland HomeCredit: “Also known as a “mortgage credit certificate” is issued to the homebuyer at the time of the purchase of a home, and allows the homeowner to claim a federal tax credit of up to $2,000 each year for the life of the loan. The amount that can be claimed each year is based on the amount of mortgage interest paid on the loan.”

First-Time Homebuyer Tax Credit. First-time home buyers are exempt from paying the buyer's portion of the State transfer tax, which is .25% of the sales price. Typically, the buyer and the seller split the .5% equally though this may vary with negotiation. This can save a buyer thousands of dollars of out-of-pocket closing costs. For this program, a first-time home buyer is defined as a party that is buying their first home in the state of Maryland and occupying the home as a primary residence. It does not matter if own or have owned homes elsewhere.

Here are a few more resources for Maryland first-time home buyers to check out:

Smart Asset offers a good breakdown of each program.

Buying A House In Maryland

Moving To Montgomery County, Maryland

Pros And Cons Of Moving To Maryland

5 Mistakes First-Time Homebuyers Make

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