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Department of Housing and Community Development

Maryland Mortgage Program Announces Diversification of Loan Products

Maryland Mortgage Program Announces Diversification of Loan Products

Additional Financial Assistance Available Now for Homebuyers

NEW CARROLLTON, MD (July 5, 2022) – The Maryland Department of Housing and Community Development’s Maryland Mortgage Program today announced the launch of new loan products to provide more flexible options of down payment and closing cost assistance. The Maryland Mortgage Program has been the state’s flagship homeownership program for over 40 years, and, for the past three years, has averaged over $1 billion in home loan reservations, helping about 4,000 Marylanders get into their dream home each year.

“In this challenging housing climate, when interest rates are increasing and affordable housing inventory is low,  the state of Maryland is always looking for innovative offerings to make homeownership affordable,” said Secretary Kenneth C. Holt. “Our Maryland Mortgage Program is nationally-recognized for a diversified product line, and we are constantly evaluating new products that give Marylanders the best option for homeownership.”

The Fiscal Year 2023 new products and enhancements include:

  1. Base down payment assistance will be increased from $5,000 to $6,000.
  2. SmartBuy, which offers student debt relief to homebuyers, will provide an extra down payment assistance option of a 4% loan. SmartBuy borrowers can choose between $6,000 or a 4% downpayment and closing cost assistance loan in addition to student debt relief up to $30,000.
  3. HomeStart is a new loan product for borrowers with income below 50% AMI to assist them with a 6% down payment and closing cost assistance loan.
  4. HomeAbility, for homebuyers with disabilities, to provide increased funding and a flexible loan structure.
  5. Montgomery Homeownership Program VII reopens for the 7th year in a row and will offer up to $25,000 in down payment assistance, in partnership with Montgomery County.

In addition to the newly launched loan products, the Maryland Mortgage Program offers a wide variety of mortgage products specifically tailored to make homeownership affordable and sustainable, including flexible government and conventional loans that come with various levels and forms of down payment and closing cost assistance and attractive interest rates for both first-time and repeat homebuyers, conventional refinancing and even student debt relief. To learn more and find out which product is right for you, visit and contact a participating lender.

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