Maryland First Time Home Buyer Down Payment Assistance: Options for PG County Buyers (Part 4 of 30: The Prince George's County Answer Guide)
This is Part 4 of The Prince George's County Answer Guide from Donnell Williams Jr. and DMV Prime Properties, a 30-part series answering the questions buyers, sellers, and people relocating are actually searching about Prince George's County, Maryland. This post compares the Maryland first time home buyer down payment assistance options a Prince George's County buyer can look at in 2026.
A Prince George's County buyer seeking Maryland first time home buyer down payment assistance can look at three main sources: the county's Pathway to Purchase (up to $50,000), the state's Maryland Mortgage Program, which offers $6,000 or a percentage of the loan as a 0% deferred second loan, and nonprofit options such as NACA. Your approved lender decides which programs can be combined.
Key Takeaways
- Pathway to Purchase, from Prince George's County DHCD, offers up to $50,000 as a zero-interest deferred loan that is forgiven over 15 years of owner occupancy.
- The Maryland Mortgage Program (MMP) 1st Time Advantage 6000 provides $6,000 as a 0% interest deferred second lien, repaid when the first mortgage ends.
- Other MMP products offer assistance equal to 3%, 4%, 5%, or 6% of the first mortgage, depending on the product and income.
- MMP's Partner Match can add up to $2,500 from approved employers, builders, or local government partners on eligible products.
- NACA offers a mortgage with no down payment and no mortgage insurance, but buyers still need some funds and must complete NACA's process.
- Stacking rules are set by each program and applied by the lender, so no buyer should assume two programs combine until a lender confirms it.
What Maryland first time home buyer down payment assistance can a PG County buyer use?
Down payment assistance, often shortened to DPA, is money that helps pay a buyer's down payment, closing costs, or both. In Maryland, most DPA is a second loan behind your main mortgage. Some are forgiven over time; others are repaid when you sell, refinance, or pay off the first mortgage.
The table below compares the main options. Program details come from the Prince George's County DHCD Pathway to Purchase page, the Maryland Mortgage Program's product summary (updated September 4, 2026), the MMP Partner Match page, and the NACA mortgage product page.
Pathway to Purchase
Pathway to Purchase is the largest single source for many county buyers. According to Prince George's County DHCD, it provides up to $50,000 for down payment and closing costs. Income must be at or below 80% of Area Median Income, and purchase prices are capped at $485,000 for new construction and $448,000 for resale. Buyers must complete 8 hours of homebuyer education and use an approved certified lender. Forgiveness does not start until year 6 (see Part 1 on the Prince George's County first time home buyer program and Part 2 on how the forgiveness schedule works).
Maryland Mortgage Program 1st Time Advantage
The Maryland Mortgage Program, administered by the Maryland Department of Housing and Community Development, offers first mortgages through approved lenders and can add DPA as a second loan.
According to the MMP 1st Time Advantage 6000 fact sheet, the $6,000 assistance is a 0% interest second lien with repayment deferred over a 30-year term. It must be repaid when the first mortgage ends, such as through a sale or refinance. Any portion not needed for the down payment and closing costs goes toward reducing the loan principal.
MMP also offers 1st Time Advantage products with assistance equal to 3%, 4%, or 5% of the first mortgage. On a $400,000 loan, 3% would be $12,000 and 5% would be $20,000. On MMP's published rate sheet, products with larger assistance carry higher first mortgage rates, so compare total cost.
Who counts as first-time for MMP?
MMP's 1st Time Advantage page allows buyers who have not owned a principal residence in more than three years. It also lists exceptions for buyers purchasing in a targeted area who sell their current home before closing, and for honorably discharged veterans who have not used the first-time buyer exemption before. MMP requires an approved homebuyer education class before closing, and its own income and purchase price limits apply.
MMP Flex products are open to repeat buyers as well as first-time buyers, with $6,000 or 3% assistance options. HomeStart offers 6% of the total loan for households at or below 50% of AMI, as a 0% interest, 30-year deferred loan. MMP's product list also includes SmartBuy for first-time buyers with student debt, a 5% option for First Homes for First Responders and Teachers, and HomeAbility, which MMP lists at up to $45,000 with special income limits.
MMP Partner Match
According to the MMP Partner Match page, borrowers using 1st Time Advantage 6000 or Flex 6000 can receive up to $2,500 in matching assistance from one or more MMP-approved partners. Partners include employers, home builders and developers, and community and local government partners. The match is a no-interest deferred state loan, payable when the first mortgage is paid off.
NACA
NACA, the Neighborhood Assistance Corporation of America, is a nonprofit with its own mortgage. According to NACA's mortgage product page, the loan requires no down payment, the lender pays closing costs, and there is no private mortgage insurance. Members still need minimum required funds for items such as earnest money, the home inspection, prepaid insurance and taxes, and reserves. Donnell is a NACA registered agent, which means he works with NACA members as an outside buyer's agent. Buyers usually choose NACA or another path early.
How does stacking down payment assistance work?
Stacking means using more than one assistance program on the same purchase. The DHCD Pathway to Purchase page notes that eligible participants may also be able to use the Maryland Mortgage Program. That does not mean every combination is allowed.
Stacking generally depends on four things:
- Program rules. Each program sets its own limits on income, price, and other assistance. The strictest rule usually controls.
- Lien order. Every second loan is recorded against the home. Programs often require a specific position, such as second or third lien.
- Combined loan limits. Lenders and investors cap the total of all loans compared with the home's value or price.
- Use of funds. Assistance pays for down payment and closing costs. Many programs, including MMP, apply extra funds to principal rather than giving cash back at closing.
For example, a buyer purchasing a $440,000 resale townhome in Largo near the Largo Town Center Metro station might ask to pair Pathway to Purchase with an MMP first mortgage and $6,000 assistance. Whether that is approved is the lender's decision under both programs' rules, so never write an offer that assumes it.
What else affects how much cash you need?
DPA is only one part of the cash picture. A qualifying first-time Maryland home buyer can also shift state transfer, county transfer, and recordation taxes to the seller under Maryland law, unless the contract says otherwise (see Part 3 of this series on the Maryland first time home buyer transfer tax). Seller credits and builder incentives can help too, within each loan program's limits. According to Bright MLS data for Prince George's County for September 2026, 396 of 580 September sales (68%) included seller concessions, with a median of $12,511 when paid.
How to choose the right program
Start with your lender, not your home search. Donnell Williams Jr., who has worked in Prince George's County real estate since 2000 and holds a PMP certification, recommends this sequence:
- Meet with an approved lender who works with both Pathway to Purchase and MMP.
- Ask for a side-by-side estimate of cash to close and monthly payment for each option.
- Finish homebuyer education early.
- Shop only after you know your maximum price under the strictest program you plan to use.
Frequently Asked Questions
What is the best Maryland first time home buyer down payment assistance program?
There is no single best program. Pathway to Purchase offers the most money for qualifying Prince George's County buyers, while MMP products may fit buyers above the county's income or price limits. An approved lender can compare total cost for your situation.
Is Maryland down payment assistance free money?
Usually not. Most Maryland DPA is a deferred second loan. Pathway to Purchase is forgiven over 15 years of occupancy, while MMP's 1st Time Advantage 6000 is repaid when the first mortgage ends, such as at a sale or refinance.
Can I use Pathway to Purchase and the Maryland Mortgage Program together?
Prince George's County DHCD says eligible participants may also be able to use MMP. Your lender confirms whether a specific combination is allowed under both programs' rules.
Do I have to be a first-time buyer for MMP?
Not for every product. MMP Flex products are open to repeat buyers. The 1st Time Advantage products are for first-time buyers, generally defined as not owning a principal residence in the past three years, with listed exceptions.
Who do I call about MMP?
MMP lists 301-429-7852 as its main line, and approved lenders can explain current products and rates. For Pathway to Purchase, DHCD lists 301-883-5456.
This article is general information, not legal, tax, or lending advice. Program terms and rates change, so confirm with an approved lender.
Next Steps
The right Maryland first time home buyer down payment assistance plan starts with a clear comparison. Donnell Williams Jr., Broker-Owner of DMV Prime Properties and author of The Complete Guide to Buying a Home, offers a first-time buyer strategy call that lines up county, state, and nonprofit options, your price cap, and your education timeline before you tour homes. "Educate to Elevate" is how the brokerage works with every buyer. Call 301.265.3446, email donnell@dmvprimerealty.com, or visit OWNDMV.COM. The office is at 12815 Old Fort Road, Suite 105, Fort Washington, MD 20744.
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