Pairing Maryland down payment assistance with a VA loan
VA loans don't require a down payment, so why would a Veteran add Maryland down payment assistance on top? One reason: closing costs and prepaids. On a $0-down VA loan, an MMP deferred second can get an eligible buyer close to zero cash to close. Because most MMP assistance is a no-interest deferred second, it does not add a monthly payment the way a repayable second would.
Most national VA lenders ignore Maryland assistance entirely. Their loan officers don't know how the Maryland Mortgage Program's deferred second pairs with a VA first. That is the Maryland-specific gap we close.
What Maryland Mortgage Program assistance is
The Maryland Mortgage Program (MMP), run by the Maryland Department of Housing and Community Development (DHCD), pairs a 30-year fixed first mortgage with down payment and closing-cost assistance delivered as a no-interest deferred second mortgage — repaid only when the first mortgage is paid off, refinanced, or the home is sold.
| Product | Assistance |
|---|---|
| 1st Time Advantage | DPA sized as a percentage of the first mortgage (for example 3%, 4%, or 5%) |
| 1st Time Advantage 6000 | Flat $6,000 DPA (no-interest deferred second) |
| Flex / Flex 6000 | For first-time or repeat buyers; Flex 6000 = $6,000 DPA |
| Partner Match | Up to $2,500 match on contributions from an approved MMP Partner (deferred, no-interest) |
How it pairs with a VA loan
Your VA first mortgage covers the purchase with $0 down for full-entitlement Veterans. The MMP deferred second then covers closing costs and prepaids, which is where most of a VA buyer's remaining cash goes. Because the MMP second is a separate lien from a separate agency, it does not touch your VA entitlement.
One rule matters: only one down payment assistance program applies per transaction. We help you decide whether the MMP second is the right fit for your purchase.
Things to watch
- Education is required. MMP requires a homebuyer education course before closing.
- Income and price limits. MMP sets income and purchase-price limits that vary by jurisdiction; we confirm your county's current limits up front.
- Repayment on sale or refinance. The deferred second is repaid when you pay off, refinance, or sell — plan for it if you expect to move or refinance soon.
- Mortgage Credit Certificate. Maryland has offered a Mortgage Credit Certificate (a federal tax credit on mortgage interest) in some years; ask us whether one is available for your purchase.
Example — Fort Meade area VA buyer
A full-entitlement Veteran buys a home in Odenton (Anne Arundel County) with a VA loan at $0 down. The VA funding fee is waived because the buyer has a service-connected disability rating. The buyer uses an MMP deferred second to cover most closing costs and prepaids, walking in with little cash to close.
- VA first mortgage: $0 down, funding fee waived (service-connected disability)
- MMP deferred second: applied to closing costs and prepaids (no monthly payment)
- Anne Arundel County property tax and Maryland homeowners insurance are escrowed into the monthly payment
We model the full payment before you write an offer.
Frequently asked questions
Can I use Maryland DPA on a VA jumbo loan above the county limit?
MMP is built for loans within standard limits and has its own loan-amount and price caps. Above your county limit you can still use a VA jumbo with full entitlement, but typically without the MMP second. We run the math both ways.
Does using Maryland DPA hurt my VA entitlement?
No. The MMP second is a separate lien from a separate agency. Your VA first mortgage uses entitlement; the MMP second does not, so you preserve future-purchase entitlement.
Is Maryland DPA a grant I don't pay back?
MMP assistance is usually a no-interest deferred second mortgage, not a grant: there is no monthly payment, but it is repaid when you pay off, refinance, or sell. We confirm the exact terms for your product.
What do I need to qualify for MMP?
Plan on meeting MMP's credit, income, and purchase-price limits for your jurisdiction and completing an approved homebuyer education course before closing.