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State Reveals New Home Loan Products to Help Marylanders Buy New Homes

BALTIMORE (WJZ) — According to housing officials, the Maryland Department of Housing and Community Development’s Maryland Mortgage Program is launching a variety of new home loan products to provide more flexible options for down payments and assistance with closing costs.

The new financial assistance will help more Marylanders buy their dream home.

“In this challenging housing climate, when interest rates are rising and affordable housing inventory is low, the State of Maryland is always looking for innovative offerings to make homeownership affordable” said Department of Housing and Community Development Secretary Kenneth Holt. “Our Maryland mortgage program is nationally recognized for its diverse product line, and we are constantly evaluating new products that provide Marylanders with the best homeownership option.”

Maryland’s mortgage program has, over the past three years, generated an average of more than $1 billion in home loan reservations, helping about 4,000 Marylanders acquire homes, according to housing officials.

New loan products for fiscal year 2023 include:

  • Basic down payment assistance will increase from $5,000 to $6,000.
  • SmartBuy, which provides student debt relief to homebuyers, will offer an option for additional 4% loan down payment assistance. SmartBuy borrowers can choose between $6,000 or a 4% down payment and a closing cost assistance loan plus up to $30,000 in student debt relief.
  • HomeStart is a new loan product for borrowers with an income below 50% of the AMI to help them with a 6% down payment and a closing cost assistance loan.
  • HomeAbility, for homebuyers with disabilities, to provide increased financing and a flexible loan structure.
  • Montgomery Homeownership Program VII is reopening for the seventh consecutive year and will provide up to $25,000 in down payment assistance, in partnership with Montgomery County.

To learn more about these products, go to and contact a participating lender.

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