Down Payment Assistance – The Maryland Mortgage Program (MMP)

Coming up with the money required for a Down Payment on a home, townhome or condominium purchase is the single biggest obstacle that Maryland first time home buyers face. The cost of living in most parts of the state, including the costs to rent, can make it difficult for those working stable jobs to save money out of their paychecks to apply toward their first home purchase. Even with certain mortgages that only require 3.5% Down, the upfront down payment costs plus the closing costs for a mortgage still will total several thousand dollars.

The Maryland Mortgage Program (MMP) provided Down Payment Assistance of several types, as well as a range of local employer Partner Match programs from employers, home builders and community organizations that help you cover down payment and closing costs. The MMP program’s baseline Down Payment assistance allows you to borrow up to $8,500 on a 0% interest, long-term deferred loan with easy payback terms. Other sub-programs like Partner Match can add on to the $8,500.

The Down Payment loans can also be used for closing costs, prepaid/escrow expenses, home inspection costs, etc. during the purchase of a qualifying home in a qualifying location. These funds give you a lot of flexibility as a first time buyer to deal with the various expenses that are built into the purchase process.

Zero-interest deferred loans like the ones offered by MMP are due upon sale or transfer of the property or if the first mortgage is refinanced or paid in full, and do not accrue interest over time (if you borrow $8,500 now to help with your down payment, you would repay $8,500 when due – perhaps as far away as 30 years if that is how long you are making payments on the primary mortgage).