Have you heard of the Maryland Mortgage Program's 1st Time Advantage line? If you are buying your first home anywhere from Garrett County to Worcester County, it is the state's core first-time product: a 30-year fixed first mortgage that the Maryland Department of Housing and Community Development (DHCD) describes as carrying "the lowest 30-year fixed interest rate available for Maryland Mortgage Program loans."
That said, the national mortgage sites rarely go past the headline. This playbook works at the level that actually decides your file — the county income and price limits in effect for 2026, how the deferred down-payment second is written, how Partner Match stacks on top of it, and what your lender must do between contract and closing.
Sources and dates used in this playbook. Income, acquisition-cost, and loan limits come from MMP Attachment III, 2026 Limits, effective June 24, 2026.
Product rules come from the MMP Product Matrix dated September 4, 2026, the 1st Time Advantage 6000 fact sheet (updated July 5, 2022), the Partner Match Programs fact sheet (updated November 6, 2025), and the MMP Compliance Manual (updated January 28, 2026). All were verified against DHCD's site on October 15, 2026.
What The 1st Time Advantage Line Includes In 2026
The 1st Time Advantage name covers several products that share one first mortgage structure but differ in how much down-payment assistance (DPA) rides along. According to DHCD's 1st Time Advantage program page, the options include:
- 1st Time Advantage Direct. No MMP DPA, which is why the Product Matrix notes it is usually the lowest MMP rate available. Assistance from outside sources may still be used.
- 1st Time Advantage 6000. A flat $6,000 deferred second lien for down payment and closing costs. This is the only 1st Time Advantage option that accepts Partner Match.
- 1st Time Advantage 3%, 4%, and 5%. A deferred second equal to 3%, 4%, or 5% of the first mortgage. Partner Match is not available on these, per the September 4, 2026 Product Matrix.
- HomeStart. A 6% deferred second for households at or below 50% of area median income (AMI), measured against DHCD's 2026 AMI limits, effective June 24, 2026.
- MMP-UPLIFT and First Homes for First Responders and Teachers. Both run on the 5% structure, limited to eligible UPLIFT properties or to qualifying first responders and teachers.
All of these share the same underwriting floor. The Product Matrix lists a 640 minimum credit score across the line, a 50% maximum debt-to-income ratio with automated approval on conventional loans, and for FHA, VA, and USDA loans a 50% cap at FICO 680 or higher versus 45% for scores from 640 to 679.
Keep in mind that DHCD's page states the Maryland HomeCredit Program — the state's mortgage credit certificate — may not be layered with this line. If student debt is the bigger obstacle, our breakdown of Maryland SmartBuy 3.0 student-debt payoff covers the product built for that problem.
Who Counts As A First-Time Buyer
The 6000 fact sheet and the standard 30-year fact sheet use the federal bond definition: you have not owned a principal residence anywhere for the past three years. Of course, there are exceptions, and the fact sheet names three of them:
- Three-year lookback. More than three years have passed since you last owned a principal residence.
- Targeted area purchase. You are buying in a targeted area and sell your current home before closing on the new one.
- Veteran exemption. You are an honorably discharged veteran using the one-time exemption under the Heroes Earnings Assistance and Relief Tax Act of 2008, documented with a DD-214 and the Veteran First Time Homebuyer Exemption form (Attachment V).
Regardless of which path applies, the Product Matrix adds a hard line: no property can be owned at the time of approval and closing. What's more, the standard fact sheet bars non-occupant co-borrowers, so a parent cannot co-sign without living in the home.
2026 Income And Purchase Price Limits By County
MMP sets two ceilings per jurisdiction — total household income and maximum acquisition cost — and both change depending on whether the property sits in a targeted area. The table below reproduces DHCD's Attachment III exactly as published, effective June 24, 2026, including the CDA maximum mortgage limit for each jurisdiction.
In Baltimore County, the 2026 MMP income limit is $140,759 for a one- or two-person household and $161,873 for three or more in non-targeted areas. Targeted areas allow $164,520 and $191,940.
| County / City | Household Size | Income Limit (Non-Targeted) | Income Limit (Targeted) | Max Acquisition Cost (Non-Targeted) | Max Acquisition Cost (Targeted) | CDA Max Mortgage Limit |
|---|---|---|---|---|---|---|
| Allegany County | 1 or 2 | N/A | $164,520 | N/A | $692,211 | $541,287 |
| Allegany County | 3 or more | N/A | $191,940 | N/A | $692,211 | $541,287 |
| Anne Arundel County | 1 or 2 | $140,759 | $164,520 | $782,118 | $955,922 | $747,500 |
| Anne Arundel County | 3 or more | $161,873 | $191,940 | $782,118 | $955,922 | $747,500 |
| Baltimore City | 1 or 2 | N/A | $164,520 | N/A | $955,922 | $747,500 |
| Baltimore City | 3 or more | N/A | $191,940 | N/A | $955,922 | $747,500 |
| Baltimore County | 1 or 2 | $140,759 | $164,520 | $782,118 | $955,922 | $747,500 |
| Baltimore County | 3 or more | $161,873 | $191,940 | $782,118 | $955,922 | $747,500 |
| Calvert County | 1 or 2 | $190,320 | N/A | $1,255,921 | N/A | $832,750 |
| Calvert County | 3 or more | $222,040 | N/A | $1,255,921 | N/A | $832,750 |
| Caroline County | 1 or 2 | N/A | $164,520 | N/A | $692,211 | $541,287 |
| Caroline County | 3 or more | N/A | $191,940 | N/A | $692,211 | $541,287 |
| Carroll County | 1 or 2 | $140,759 | N/A | $782,118 | N/A | $747,500 |
| Carroll County | 3 or more | $161,873 | N/A | $782,118 | N/A | $747,500 |
| Cecil County | 1 or 2 | $137,100 | N/A | $659,385 | N/A | $630,200 |
| Cecil County | 3 or more | $157,665 | N/A | $659,385 | N/A | $630,200 |
| Charles County | 1 or 2 | $199,320 | N/A | $1,306,974 | N/A | $832,750 |
| Charles County | 3 or more | $232,540 | N/A | $1,306,974 | N/A | $832,750 |
| Dorchester County | 1 or 2 | N/A | $164,520 | N/A | $692,211 | $541,287 |
| Dorchester County | 3 or more | N/A | $191,940 | N/A | $692,211 | $541,287 |
| Frederick County | 1 or 2 | $199,320 | $199,320 | $1,306,974 | $1,597,413 | $832,750 |
| Frederick County | 3 or more | $232,540 | $232,540 | $1,306,974 | $1,597,413 | $832,750 |
| Garrett County | 1 or 2 | N/A | $164,520 | N/A | $692,211 | $541,287 |
| Garrett County | 3 or more | N/A | $191,940 | N/A | $692,211 | $541,287 |
| Harford County | 1 or 2 | $140,759 | $164,520 | $782,118 | $955,922 | $747,500 |
| Harford County | 3 or more | $161,873 | $191,940 | $782,118 | $955,922 | $747,500 |
| Howard County | 1 or 2 | $140,759 | N/A | $782,118 | N/A | $747,500 |
| Howard County | 3 or more | $161,873 | N/A | $782,118 | N/A | $747,500 |
| Kent County | 1 or 2 | N/A | $164,520 | N/A | $692,211 | $541,287 |
| Kent County | 3 or more | N/A | $191,940 | N/A | $692,211 | $541,287 |
| Montgomery County | 1 or 2 | $199,320 | $199,320 | $1,306,974 | $1,597,413 | $832,750 |
| Montgomery County | 3 or more | $232,540 | $232,540 | $1,306,974 | $1,597,413 | $832,750 |
| Prince George's County | 1 or 2 | $199,320 | $199,320 | $1,306,974 | $1,597,413 | $832,750 |
| Prince George's County | 3 or more | $232,540 | $232,540 | $1,306,974 | $1,597,413 | $832,750 |
| Queen Anne's County | 1 or 2 | $140,759 | N/A | $782,118 | N/A | $747,500 |
| Queen Anne's County | 3 or more | $161,873 | N/A | $782,118 | N/A | $747,500 |
| St. Mary's County | 1 or 2 | $141,600 | N/A | $566,354 | N/A | $541,287 |
| St. Mary's County | 3 or more | $162,840 | N/A | $566,354 | N/A | $541,287 |
| Somerset County | 1 or 2 | N/A | $164,520 | N/A | $692,211 | $541,287 |
| Somerset County | 3 or more | N/A | $191,940 | N/A | $692,211 | $541,287 |
| Talbot County | 1 or 2 | $137,100 | $164,520 | $566,354 | $692,211 | $541,287 |
| Talbot County | 3 or more | $157,665 | $191,940 | $566,354 | $692,211 | $541,287 |
| Washington County | 1 or 2 | $137,100 | $164,520 | $566,354 | $692,211 | $541,287 |
| Washington County | 3 or more | $157,665 | $191,940 | $566,354 | $692,211 | $541,287 |
| Wicomico County | 1 or 2 | $137,100 | $164,520 | $566,354 | $692,211 | $541,287 |
| Wicomico County | 3 or more | $157,665 | $191,940 | $566,354 | $692,211 | $541,287 |
| Worcester County | 1 or 2 | $137,100 | $164,520 | $566,354 | $692,211 | $541,287 |
| Worcester County | 3 or more | $157,665 | $191,940 | $566,354 | $692,211 | $541,287 |
Keep in mind how the "N/A" entries work: where the non-targeted columns read N/A — Allegany, Baltimore City, Caroline, Dorchester, Garrett, Kent, and Somerset — DHCD publishes only targeted figures for the jurisdiction, while N/A in the targeted columns for Calvert, Carroll, Cecil, Charles, Howard, Queen Anne's, and St. Mary's means only non-targeted limits are published there.
In the mixed jurisdictions, targeted status is set tract by tract. Confirm the specific address on DHCD's Maryland Mortgage Program Mapper before you rely on the higher column.
The Statewide Loan Cap Sits On Top Of The County Limits
Attachment III also sets a maximum loan amount of $832,750, and the CDA mortgage limit is the lesser of the acquisition cost or HUD's FHA one-family limit, not to exceed that figure. Note that the cap includes financed fees: FHA base loan plus upfront mortgage insurance premium, or VA, USDA, and conventional base loan plus the funding fee, guarantee fee, or single-premium mortgage insurance.
MMP caps every first mortgage at $832,750 for 2026, including any financed FHA upfront premium, VA funding fee, USDA guarantee fee, or single-premium mortgage insurance. County CDA limits can be lower.
Additionally, the standard fact sheet counts capitalized ground rent — 200 times the monthly ground rent — toward the purchase price, which matters in Baltimore City and parts of Baltimore County. For USDA loans, the income limit is the lesser of the MMP figure or the USDA guaranteed-program limit.
How The DPA Second Works
The 6000 fact sheet describes a 0% interest, 30-year deferred loan of $6,000 recorded as the second lien, used for down payment, closing costs, or both. In fact, the amount is fixed: "no higher or lower amounts are allowed."
The 1st Time Advantage 6000 second is exactly $6,000 at 0% with no monthly payment. It comes due when the first mortgage ends — at sale, transfer, refinance, payoff, or maturity — or on default.
Section 6.11 of the Compliance Manual sets the trigger precisely: the DPA or Partner Match loan is due at the earlier of maturity or prepayment of the first mortgage, sale or transfer of the property, or default under the DPA loan. Section 6.13 bars assumption except for transfers to a spouse, divorced spouse, or resident child, or as otherwise permitted with insurer and DHCD approval.
Several other mechanics in Section 6 change the math at the closing table:
- Excess funds go to principal. Under Section 6.8, any DPA left over after down payment and closing costs is applied to the first mortgage principal, although you may recover your own upfront contribution if the program's minimum contribution was met.
- No fees on the second. Section 6.7 prohibits settlement fees for closing the DPA loan, and lender fees may not reference MMP, DPA, or CDA.
- Tax-exempt recording. Section 6.14 exempts the DPA deed of trust from recordation and transfer taxes under the Tax-Property Article, Sections 12-108(a)(1), 13-207(a)(1), and 13-402.1(b)(2).
- Percentage products round down. Section 6.4 calculates percentage DPA from the full first mortgage, including any financed MIP, VA funding fee, or guarantee fee, rounded down to the nearest dollar.
The recording exemption covers only the DPA instrument, so county transfer and recordation taxes on the deed and first mortgage still apply. Our guides to Maryland closing costs, the Anne Arundel County transfer tax, and the Howard County transfer tax break those charges down by jurisdiction.
Stacking Partner Match On The 6000
Partner Match is how employers, builders, colleges, and community organizations add money to an MMP loan. The November 6, 2025 fact sheet states that MMP matches the partner's contribution dollar-for-dollar up to $2,500, and that the match is added to the existing $6,000 for a total of $8,500 in one zero-percent deferred loan.
MMP matches an approved partner's contribution dollar-for-dollar up to $2,500, lifting the deferred second from $6,000 to $8,500. Within the 1st Time Advantage line, only the 6000 product accepts it.
Partners fall into four programs, according to the fact sheet and Compliance Manual Section 6.9:
- House Keys 4 Employees (HK4E). Participating employers contribute, and eligible State of Maryland employees paid through the POSC payroll system can receive a total HK4E contribution of $2,500 without a separate employer check.
- Smart Keys 4 Employees (SK4E). An HK4E add-on worth an additional $1,000 on the same terms, if the home is within 10 miles of your job or inside the same jurisdiction and also in a Priority Funding Area.
- Builder/Developer Incentive Program (BDIP). Participating builders and developers.
- Community Partners Incentive Program (CPIP) and Public Institutions of Higher Education (PIE). Nonprofits, local governments, and public colleges.
Each partner sets its own eligibility rules and decides whether its contribution is a grant or a loan. Remember that the partner must deliver its contribution at settlement, and the fact sheet places responsibility for that on the borrower.
One wrinkle deserves attention. Compliance Manual Section 6.9(C) says Partner Match may combine with MMP DPA unless the fact sheet restricts it, yet the September 4, 2026 Product Matrix marks Partner Match "not available" on the 3%, 4%, 5%, and HomeStart products — so treat the 6000 as the only stacking path and confirm any exception in writing with your lender.
What Your Lender Has To Do
Only DHCD-approved lenders that have completed MMP training can reserve these loans, and much of the timeline is controlled by the Compliance Manual. Here is the sequence a participating lender follows:
- Wait for a ratified contract. Section 1.2 requires a fully ratified sales contract before the reservation request is submitted in Lender Online.
- Reserve and lock. Reserving automatically locks the rate, and Section 1.5 states that re-locks are not an option; a product change after reservation is priced at the higher of current or original pricing.
- Project eligibility income. As of the reservation date, the lender projects household income on the Income Eligibility Worksheet and Lender Certification (Attachment D).
- Submit the pre-closing compliance package. Section 1.3 asks for submission within 30 days of reservation, with review turnaround generally one to three business days, and the 6000 requires a full documentation package.
- Close with the second in second position. Section 6.5 requires the MMP first in first lien position and the DPA or Partner Match loan in second, and the lender advances the DPA at closing for later CDA reimbursement.
- Get the loan purchased. Section 1.3 sets a 105-day reservation-to-purchase timeline, and loans not purchased by US Bank by day 105 are canceled.
Your lender reserves the loan in Lender Online after a ratified contract, which locks the rate with no re-lock. The compliance package should go in within 30 days, and US Bank must buy the loan by day 105.
Accordingly, contract timing matters. If your settlement date sits far out — common with new construction — ask your lender how it fits inside the 105-day window before reserving, since a canceled reservation blocks a new one for three months under Section 1.5.
The standard fact sheet also limits pricing to zero points and requires approved homebuyer education before closing. New construction qualifies only inside a Priority Funding Area, and the lot generally may not exceed four acres.
Worked Example: A Baltimore County FHA Purchase
The figures below are illustrative and assume an FHA loan, using the 96.5% maximum base loan from the standard MMP fact sheet and an upfront mortgage insurance premium assumed at HUD's current 1.75% — confirm the premium with your lender. Interest rates are deliberately left out, since MMP publishes them daily on its rate sheet and they differ by product.
Assume a household of three earning $140,000 buys a $400,000 townhouse in a non-targeted part of Baltimore County, and one buyer works for an HK4E employer that contributes $2,500. The income is under the $161,873 limit and the price is under the $782,118 acquisition cap.
| Line Item | Amount | Basis |
|---|---|---|
| Purchase price | $400,000 | Under $782,118 cap |
| FHA base loan (96.5%) | $386,000 | MMP 30-year fact sheet |
| Upfront MIP (1.75%, financed) | $6,755 | HUD; counts toward cap |
| Total first mortgage | $392,755 | Under $747,500 CDA limit |
| Minimum cash down (3.5%) | $14,000 | Price minus base loan |
| 1st Time Advantage 6000 second | $6,000 | Fixed amount |
| HK4E employer contribution | $2,500 | Partner's terms |
| MMP Partner Match | $2,500 | Dollar-for-dollar, $2,500 max |
| MMP deferred second after match | $8,500 | Partner Match fact sheet |
| Total assistance at closing | $11,000 | $8,500 MMP plus $2,500 employer |
In this example, $11,000 of assistance covers most of the $14,000 down payment, and closing costs come on top. If the home also sat in a Priority Funding Area within 10 miles of the job, SK4E would add $1,000 on the same deferred terms.
Now compare the percentage products on the same $392,755 first mortgage, rounded down per Section 6.4. The 3% option yields $11,782, the 4% option yields $15,710, and the 5% option yields $19,637 — and the employer's $2,500 would not be matched on any of them.
A 3% second beats the flat $6,000 once the total first mortgage tops $200,000, and beats a full $8,500 Partner Match stack above roughly $283,333 — before comparing each product's rate.
This is why the decision cannot stop at the DPA amount. A larger second usually comes with a different rate on the first mortgage, so ask your lender to price the 6000-plus-match path and the 3%, 4%, and 5% paths side by side for the same day.
What Happens When You Sell Or Refinance
Suppose the household sells in year six. The $8,500 MMP second is repaid from sale proceeds at settlement, while any employer loan follows that employer's own terms.
Federal law can impose a recapture tax on a sale within the first nine years of a bond-financed mortgage. Under Compliance Manual Section 8, CDA reimburses that tax for homebuyers who settled on or after July 1, 2005, provided you send a written request with your closing disclosure and tax documents by July 15 of the year after the sale.
A refinance also triggers repayment. The narrow exception is MMP's own 97% LTV Conventional Refinance Program, where Section 7.2 allows existing DPA and Partner Match loans to be subordinated and keep the 0% deferred term — worth knowing if you later pursue removing PMI or MIP through a refinance.
A Decision Rule For Maryland First-Time Buyers
All of the above reduces to a short sequence. First, confirm your household income and target price against your county's row and the address's targeted status; next, check whether your employer, builder, or a local nonprofit is an MMP partner; finally, have a participating lender price every eligible 1st Time Advantage option for the same day before your contract is ratified.
If you are still choosing between state programs, our Maryland mortgage guide maps the full MMP lineup alongside conventional and FHA options. Montgomery County buyers should also review the Montgomery County transfer tax, which applies on top of any assistance.
Your rate and final assistance depend on credit, loan type, and the product priced on the day your lender reserves. DHCD can be reached at [email protected] or 800-756-0119 for program questions.
This article is for informational purposes and is not financial / mortgage / contractor advice. Consult a licensed professional in your jurisdiction.