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Maryland Mortgage Program (MMP): Income Limits & Application Info

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maryland mortgage program guide

For many first-time buyers in Maryland, the dream of homeownership can feel just out of reach. If it’s not high prices, it’s steep down payments and if not that it’s sky-high income requirements. 

No matter how you look at it, breaking into the market is tough. Even more frustratingly, it’s often the buyers who can easily afford monthly payments who get hit the hardest — stuck on the sidelines simply because saving for upfront costs feels almost impossible.

But don’t give up just yet—this is where the Maryland Mortgage Program (MMP) steps in.

This program is designed to make homeownership more accessible and affordable by providing down payment assistance, closing cost support and access to specially designed mortgage options with competitive rates for eligible buyers. Plus, the MMP has options for first-time buyers who are stressed about their credit score, struggling to save or unsure if they even qualify.

In even better news, while the MMP is primarily for first-time buyers, most people don’t realize that it defines “first-time” as anyone who hasn’t owned a home in three years. Meaning  if you’re eyeing a home in a Targeted Area or using the Flex product line, you might still qualify and score the same great benefits.


 

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Contents:


What is the Maryland Mortgage Program (MMP)?

The Maryland Mortgage Program (MMP) is a state-backed home loan initiative designed for first-time homebuyers, though some repeat buyers may qualify under specific conditions. The program offers 30-year fixed-rate mortgages, down payment assistance, and closing cost support to make homeownership more accessible.

To qualify, total household income must fall within MMP limits, which vary by county and household size. That being said, limits generally range from $137,700 to $216,580 but higher limits apply in some areas (Check your county’s 2024 income limits here).

One of the best perks of MMP is its 1st Time Advantage 6000 program, which gives you up to $6,000 to help with your down payment or closing costs. The best part? No monthly payments, no interest. You only pay it back when you sell your home or refinance your mortgage, making it a stress-free way to cover upfront costs.

A key thing to keep in mind is that some parts of Maryland, known as Targeted Areas, have higher income limits and don’t require you to be a first-time homebuyer. So even if you’ve owned a home before, you might still qualify for MMP. (Check if your area qualifies here).

Key Benefits of the Maryland Mortgage Program (MMP)

🔹 1. State-Backed, Fixed-Rate Mortgages: The MMP offers 30-year fixed-rate loans with lower-than-market interest rates, so your monthly repayments remain super predictable, even if rates rise. This stability helps you budget long-term without worrying about payment hikes.

🔹 2. Flexible Income Limits: More buyers qualify than you might expect. In Montgomery & Prince George’s Counties, the income limit is $185,640 for 1-2 person households and $216,580 for 3+ person households. Even higher limits apply in Targeted Areas—check your county’s 2024 limits.

🔹 3. Up to $6,000 for Down Payment & Closing Costs: The 1st Time Advantage 6000 program gives you a $6,000 loan at 0% interest, meaning no monthly payments, no added cost. You only pay it back when you sell or refinance. This can help cover lender fees, title insurance, or a chunk of your down payment, easing your cash burden at closing.

🔹 4. Targeted Area Benefits: Buying in a Targeted Area? You don’t have to be a first-time buyer, and income limits are even higher. These areas are chosen to encourage homeownership, so if you’ve owned before but are struggling to buy again, this could be your way back in.

🔹 5. Extra Savings with Partner Programs: The MMP can be combined with other homebuyer assistance programs, like employer-based assistance or local grants. Many buyers stack these programs to cover even more upfront costs, reducing out-of-pocket expenses. A lender or loan officer can help you combine benefits for maximum savings!

mmp applications

Common Homebuyer Concerns (and How to Solve Them)

🚨 "I don’t know if my income qualifies."
➡ Income limits change by county and household size. If you're close to the limit, ask a loan officer if pre-tax deductions (like retirement contributions) can lower your qualifying income.

🚨 "Even with assistance, I don’t have enough saved."
➡ The $6,000 in closing cost/down payment help can make a huge difference, but you’ll still need some cash (earnest money, inspections, moving expenses). If saving is tough, look into grants or employer assistance programs — the MMP works with many of them!

🚨 "My credit score isn’t great — can I still qualify?"
➡ The minimum score is 640, but higher scores mean better loan terms. If you're close, pay down credit card balances, dispute any errors on your report, and avoid new debt before applying.

🚨 "I’m worried my debt is too high."
➡ Your Debt-to-Income (DTI) ratio must be below 50% (or 45% for FHA loans unless your credit score is 680+). If you're over the limit, paying down high-interest debt or increasing income can help. A lender can calculate this for you and suggest quick fixes to improve it.

Do You Qualify for the Maryland Mortgage Program (MMP)?

If you’re wondering whether the MMP is right for you, ask yourself these key questions:

✔ Is your income within the limit?

  • MMP has higher income limits than many assistance programs, making it accessible to more buyers.
  • For example, in Montgomery & Prince George’s Counties, the limit is $185,640 for 1-2 person households and $216,580 for 3+ person households.
  • Want to check your county? See full income limits here.

✔ Are you a first-time buyer—or buying in a Targeted Area?

  • MMP defines “first-time” as not owning a home in the last three years—so if you’ve been renting but owned before, you may still qualify.
  • Buying in a Targeted Area? You can skip the first-time buyer rule and benefit from higher income limits.
  • Not sure if your home qualifies? Check Targeted Areas here.

✔ Are you purchasing an eligible home in Maryland?

  • MMP is for primary residences only—single-family homes, townhouses, and condos qualify.
  • Co-ops and investment properties? Not eligible.

✔ Is your credit score at least 640?

That’s the minimum for most MMP loans, but higher scores can get better interest rates and lower costs.
Not sure where you stand? Check your credit for free at AnnualCreditReport.com.

✔ Do you need help with upfront costs?

  • MMP offers up to $6,000 in down payment & closing cost assistance through its 1st Time Advantage 6000 program.
  • This is a 0% interest loan with no monthly payments—you only repay it when you sell or refinance.

✔ Is your debt-to-income (DTI) ratio within limits?

  • MMP allows a maximum DTI of 50% (or 45% for FHA loans unless your credit score is 680+).
  • Not sure how to calculate it? Take your total monthly debt payments (credit cards, car loans, student loans, etc.) and divide them by your gross monthly income.
  • Example: If your debt payments total $2,000/month and your income is $5,000/month, your DTI is 40%.
  • Want help? This DTI calculator can give you a quick estimate—or ask a lender to walk you through it!

What’s Next?

If you answered YES to most of these, you’re likely eligible for MMP! Your next step is to connect with an qualified lender who can guide you through the application process.

To find a lender, visit the Maryland Mortgage Program website and search for participating lenders in your area.

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How to Apply for the Maryland Mortgage Program (MMP)

Applying for MMP is a straightforward process, but preparation is key to a smooth qualification. The first step is getting pre-qualified with an MMP-qualified loan officer like me, who can assess your eligibility, guide you through the loan options, and ensure you maximize your benefits.

Most applicants will also need to complete a homebuyer education course, which is required for many MMP programs. Once pre-qualified, you'll need to submit your income documentation and property details, and your loan officer will help you finalize everything through the MMP portal. Acting quickly can give you a competitive edge in Maryland’s fast-moving housing market.

✔ Get Pre-qualified with an MMP-qualified Loan Officer:  Start by connecting with a loan officer experienced with MMP, like Borgerson Home Loans, to assess your financial situation and explore your loan options.

✔ Complete a Homebuyer Education Course: Required for most applicants, this course helps you understand mortgage terms, homeownership responsibilities, and financial planning. Check MMP’s website for qualified courses.

✔ Gather & Submit Required Documents:  You’ll need to provide:

      • Proof of income (W-2s, tax returns, pay stubs)
      • Credit and employment verification
      • Bank statements and asset documentation
      • Property details (if you’ve already found a home)

✔ Submit Your Loan Application via the MMP Portal:  Your loan officer will handle the submission and ensure all required paperwork is completed correctly.

✔ Finalize & Close on Your Loan: Once qualified, you’ll lock in your mortgage rate, finalize the paperwork, and close on your home—welcome to homeownership!

Act Fast—Opportunities Don’t Last Forever

Maryland’s housing market is competitive, and waiting too long could mean missing out on lower rates, financial assistance, or even your dream home. MMP is a fantastic opportunity to reduce upfront costs, but program funding and terms can change—so taking action now is key. The best way to get started? Talk to an MMP-qualified loan officer like me today. I'm here to help you get pre-qualified, navigate the application process, and ensure you get the best deal possible.

qualifying for maryland mortgage program

Maximizing Your MMP Benefits

Getting qualified for the Maryland Mortgage Program (MMP) is just the start—how you use it can make a huge difference in your savings. By combining MMP with other assistance programs, improving your financial profile before applying, and working with an expert loan officer, you can maximize your benefits and make homeownership even more affordable.

1. Combine MMP with Local Grant Programs

MMP is powerful on its own, but stacking it with other Maryland homebuyer programs can give you even more financial support. Programs like Maryland SmartBuy (which helps pay off student loan debt) and county-level grant programs can lower your upfront costs and total mortgage burden. Ask your loan officer about what additional programs you qualify for!

2. Optimize Your Debt-to-Income (DTI) Ratio Before Applying

Your DTI ratio plays a major role in your loan qualification and interest rates. MMP allows a DTI of up to 50% (or 45% for FHA loans unless your credit score is 680+), but lowering your DTI before applying can help you secure a better loan deal. To improve your DTI:

  • Pay down high-interest debt (like credit cards or personal loans).
  • Avoid taking on new debt (don’t apply for new credit cards or loans before getting qualified).
  • Increase your income if possible—any extra earnings can help shift your DTI in your favor.

3. Work with a Loan Officer Who Knows MMP Inside and Out

Not all lenders are experts in MMP, and working with someone who understands the program’s nuances can make the process smoother and ensure you maximize every available benefit. Borgerson Home Loans specializes in MMP financing, helping buyers navigate income limits, assistance programs, and loan qualifications with ease.

Make MMP Work for You—Start Today!

The Maryland Mortgage Program (MMP) is a game-changer for homebuyers struggling with high upfront costs, strict income requirements, and rising mortgage rates. Whether you’re a first-time buyer or a repeat buyer purchasing in a Targeted Area, MMP can help make homeownership more affordable and achievable.

Understanding the details of MMP is one thing—navigating the application process and structuring your mortgage correctly is another. The best way to ensure you’re getting every possible benefit is to work with a loan officer who knows the ins and outs of the program. Get in touch today to start your application, or reserve your spot in my upcoming homebuyer seminar for expert guidance!

 

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