The Importance of Understanding First-Time Homebuyer Programs in Maryland

One of the most common things I hear from first-time buyers here in Harford County is: "I didn't know that program existed." And that breaks my heart a little — because Maryland is one of the most generous states in the country when it comes to helping first-time homebuyers get into a home. Thousands of dollars in down payment assistance, closing cost help, and below-market interest rates are sitting on the table, waiting for buyers who know where to look. Let me show you where to look.

The Maryland Mortgage Program (MMP)

The Maryland Mortgage Program, administered by the Maryland Department of Housing and Community Development (DHCD), is the cornerstone of first-time buyer assistance in our state. It offers 30-year fixed-rate mortgages at below-market interest rates to eligible first-time buyers — meaning buyers who have not owned a home in the past three years.

To qualify, you must meet income and purchase price limits that vary by county. In Harford County, the income limit for a household of one or two people is currently around $126,400, and the purchase price limit is approximately $776,000 — generous enough to cover the vast majority of homes in the Bel Air market. The program works with a network of approved lenders across Maryland, and your Realtor can help connect you with one.

Down Payment Assistance: The 1st Time Advantage Program

Paired with the Maryland Mortgage Program, the 1st Time Advantage program offers down payment and closing cost assistance in the form of a zero-interest deferred loan. This means you borrow the money for your down payment, pay nothing on it while you live in the home, and repay it only when you sell, refinance, or pay off your mortgage. For many buyers, this effectively eliminates the down payment barrier entirely.

The assistance amount varies, but eligible buyers can receive up to 5% of the loan amount — on a $300,000 home, that's $15,000 toward your down payment and closing costs.

Partner Match Programs

Maryland also offers the Partner Match program, where the state matches dollar-for-dollar any down payment assistance provided by an employer, nonprofit, or local government — up to $2,500. If you work for a participating employer or live in a jurisdiction with a local assistance program, this can stack on top of other benefits for even greater savings.

Harford County Local Resources

Beyond state programs, Harford County and the City of Bel Air periodically offer local homebuyer assistance programs. These change over time, so it's important to ask your Realtor and lender about what's currently available. Some programs are targeted at specific neighborhoods or income levels, while others are available broadly to first-time buyers in the county.

A Note on Seller-Paid Closing Costs

Here's something many first-time buyers don't realize: in Maryland, it is completely normal — and often expected — for buyers to negotiate seller-paid closing costs as part of their offer. In Harford County, sellers routinely contribute 3–6% of the purchase price toward the buyer's closing costs. On a $300,000 home, that's $9,000–$18,000 that you don't have to bring to the closing table. When combined with down payment assistance programs, many first-time buyers are able to purchase a home with very little out-of-pocket expense.

My Advice as Your Realtor

Navigating these programs can feel overwhelming, but that's exactly what I'm here for. I've helped buyers in Harford County access state and local assistance programs and negotiate seller-paid closing costs that made homeownership possible when it seemed out of reach. If you're a first-time buyer — or if you haven't owned a home in the past three years — let's talk before you assume you can't afford it. You might be surprised at what's available to you.