Buying a home is exciting, but it’s also expensive. One of the biggest challenges for first-time home buyers in Maryland is coming up with the down payment and closing costs.
The Maryland Mortgage Program (MMP) offers state-supported options, so you don’t need as much cash to get started. MMP loans are designed to make the home-buying process more affordable. Plus, they set you up for long-term success.
Here’s a look into MMP, who it’s for, and how it helps your home ownership journey.
What is the Maryland Mortgage Program (MMP)?
The MMP is a Maryland Department of Housing and Community Development initiative that offers competitive home loans and financial assistance to homebuyers through approved lenders.
Buyers with modest incomes, limited savings, or those buying in targeted areas can benefit from this program, which helps 4,000 Marylanders become homeowners each year.
Key benefits of MMP
- Affordable home loans: You get a 30-year fixed-rate mortgage, meaning your monthly payment stays the same, and you’re protected from rising interest rates.
- Down payment and closing cost help: MMP gives you extra money to help cover upfront costs. For example, you can get $6,000 of assistance with certain loan types and up to 3% of the home price. Typically, these loans come with buyer-friendly repayment terms or as a grant.
- Extra assistance in targeted areas: If you’re buying in a targeted area, like Baltimore, Silver Spring, or Frederick, the income limits are adjusted to match the cost of living.
- Homebuyer education: Some MMP programs require a homebuyer education course to teach you what to expect with mortgages, insurance, taxes, etc.
Who qualifies for MMP?
You’re eligible for MMP if you meet these requirements.
- You must be buying a home in Maryland.
- You’re a first-time buyer or haven’t owned in 3+ years.
- Your income is under a certain limit based on the location you wish to buy in and the number of people in your family.
- You meet the loan’s specific debt-to-income ratio.
- Your credit score is above 640.
- The home you want to buy is within the program’s price limits.
- You’ve completed the homebuyer education before closing.
There are exceptions and special programs for homebuyers who are veterans, living with a disability, have student loans, or want to repair a fixer-upper.
Fortunately, you don’t have to figure out if you’re eligible by yourself. You can work with a SECU mortgage loan officer to make sure you’re taking full advantage of the program.
How can SECU help you buy a home?
SECU is an approved MMP lender. We can guide you through the full process, from eligibility to closing.
Our team is familiar with Maryland-specific programs and can help you understand your options, complete homebuyer education, and access down payment assistance. Whether you’re just starting your search or ready to apply, we’re here to support your homeownership journey.
Curious if you qualify for an MMP loan? Connect with a SECU mortgage loan officer to get started.
