Pairing Maryland down payment assistance with a VA loan
Program figures verified July 2026 — details change; confirm your scenario with us.
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.
We work the Maryland-specific pairing most files never see: how the Maryland Mortgage Program's deferred second pairs with a VA first. It takes state-program knowledge, and it's a core part of what we do.
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.
Can I combine a VA loan with Maryland down payment assistance?
Yes. The Maryland Mortgage Program pairs its down payment assistance with a VA first mortgage — the 1st Time Advantage and Flex product lines include a $6,000 no-interest deferred second (1st Time Advantage 6000 / Flex 6000), and Partner Match can add up to $2,500 more. You use one DPA per transaction, and MMP income and price limits apply by county.
What is Maryland Homefront?
Maryland Homefront is the Maryland Mortgage Program's track for Veterans, active-duty service members, and their families: preferential pricing on the MMP 30-year fixed plus $5,000 toward down payment and closing costs, and it can pair with the Maryland HomeCredit federal tax credit. We model it against a straight VA loan on your numbers — the better path depends on your county limits and profile.
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.