Maryland Down Payment Assistance: 3%, 4%, 5%, $6,000 or 6%?
Maryland lets you pick your down payment amount. Here is how to choose between 3%, 4%, or 5% of your loan, a flat $6,000, or 6% through HomeStart, and when each one is the right call.
Why more is not always the answer
It is tempting to just take the biggest number, but the menu exists for a reason. A larger down payment assistance amount means a larger deferred second to repay later, and MMP often prices the first-mortgage rate a little differently across the DPA options. So the best choice balances how much cash you actually need at closing against the loan rate and the balance you will carry. If a flat $6,000 covers your gap, there is no reason to take 5%. If you are stretching, the 5% or the 6% HomeStart option may be worth it.
Which amount, when
| Option | Best when |
|---|---|
| 3% or 4% | You need moderate help and want a leaner second to repay |
| 5% | You need the most percentage-based help (higher-cost markets) |
| $6,000 flat | A fixed amount covers your gap, or beats a low % on a smaller loan |
| 6% (HomeStart) | Your income is at/below 50% of AMI, the largest option |
| Partner Match | You also have approved outside DPA to layer |
All options are 0% deferred seconds, repaid at sale/refinance/payoff. HomeStart requires income at/below 50% of AMI.
How we pick with you
We start with your cash to close, down payment plus closing costs, then work backward. If a smaller DPA plus your own savings covers it, we take the smaller one for the leaner second and the better rate. If not, we size up. We also check whether you qualify for HomeStart’s 6% or a Partner Match. It is a five-minute conversation that can save you real money over the life of the loan. See the full program on our Maryland Mortgage Program page.
Common questions
What down payment assistance amounts does Maryland offer?
You choose from a menu: 3%, 4%, or 5% of the first mortgage, a flat $6,000, or 6% through HomeStart (for households at/below 50% of AMI). Approved outside help can be matched via Partner Match. All are 0% deferred seconds.
Should I take the biggest Maryland down payment assistance amount?
Not necessarily. A larger DPA is a larger deferred second to repay, and the first-mortgage rate can differ across the options. The best choice balances the cash you need at closing against the rate and the balance you carry. If a flat $6,000 covers your gap, there's no need for 5%.
What is Maryland HomeStart?
HomeStart is the Maryland Mortgage Program option that provides 6% down payment assistance, the largest, for households with income at or below 50% of the area median income (AMI). Like the others, it is a 0% deferred second.
Ready to see your options?
Tell us your county, credit range, and price target, and we’ll map your Maryland path in a no-pressure 20-minute call. No obligation.