As the year comes to a close and thoughts of New Year’s resolutions or vision boarding loom, adding a property to your list of goals may be something to consider to improve personal goals and increase generational wealth.
The first steps are to save, save, and save—perhaps those are the first three steps— followed by improving your credit score and finding an approved housing counselor.
Equally important is researching programs in your city, county and state that can help you save money by offering down payment assistance.
To get a jump start on saving some coins, the Greater Washington Urban League is offering webinars for D.C. and Maryland residents interested in learning more about homeownership. Most are for first-time home buyers but there’s a few for return buyers, as well.
Take a look:
Maryland Programs
The Maryland Mortgage Program (MMP) makes government or conventional insured loans available to residents and works to make homeownership attainable for all types of buyers, whether you have student debt, you’re looking to purchase in a specific neighborhood, or you or someone that you care for has mobility challenges:
MMP First Time Advantage: 6 percent Down Payment Loan
Applicants for the First Time Advantage program must be, as the name suggests, first-time homebuyers and loans must be paid back once the property is no longer considered primary residence.
Household income limits vary by county: Prince George’s and Montgomery’s limit is $75,200.
An asset test or documentation on net worth including assets, is required for transactions with liquid assets greater than 20 percent of the sale price of the home.
A credit score of 640 is required.
MMP Greenbelt: $15,000 (Totally Forgivable)
First-time homebuyers who have been living in Greenbelt for the last 12 consecutive months with a ZIP code of 20770 are eligible for up to $15,000 that does not have to be paid back to the MMP.
Household income limits are $180,840 (1-2 people) and $210,980 (3-4 people) in Prince George’s and Montgomery County.
An asset test and reduced mortgage insurance (which saves FHA borrowers on lender-required insurance) is required.
The maximum loan amount must be $726,200, and a credit score of 640 or more is required.
MMP HomeAbility – $45,000 in Assistance
First-time homebuyers with a household income limit of $180,840 (1-2 people) or $210,980 (3-4 people) are eligible for the MMP HomeAbility program as long as one borrower is disabled or one borrower is the guardian for, resides with, and is the principal caregiver for an immediate family member who is disabled (regardless of age).
Proof of income from SSI, SSDI, VA or a former employer via disability policy, award or benefit letter is required, along with a Certificate of Disability.
Additional requirements include an asset test, reduced mortgage insurance, and a credit score 720 or better.
MMP SmartBuy 3.0
This unique assistance program provides up to 15 percent of the home purchase price for the first-time home purchaser to pay off student debt with a maximum payoff amount of $20,000. A credit score of 720 or better is required and this product can only be used with a conventional loan.
Borrowers must put a minimum of 3 percent down and can use other assistance programs to do so. Income limits are $180,8470 (1-2 people) and $210,980 (3-4 people), and requires reduced mortgage insurance. The maximum loan amount is $726,200.
Pathway to Purchase–Up to $25,000 Down Payment Assistance
For Pathway to Purchase, applicants must be a first-time homebuyer not having owned real estate or listed on a deed anywhere in the U.S. in three years.
To be eligible for the program, buyers must occupy the purchased home as primary residence for more than 10 years or pay back a percentage of the down payment assistance.
Applicants must be creditworthy (financially sound) and participate in an eight-hour, in-person housing class. Household income cannot exceed 80 percent of median income. Housing Quality Standard (HQS) inspection is required.
District of Columbia Programs
Washington, D.C., residents have several options to consider.
As of this writing, the popular Home Purchasers Assistance Program (HPAP) is taking new shape as of this writing. The program that offers up to $202,000 down payment and no more than $4,000 in closing cost assistance will now require applicants to enter a lottery, according to local realtors. Additional changes are expected. Our House D.C. will keep you updated. In the meantime, take a look at these other programs tailored for first-time homebuyers, first-time in D.C. homebuyers, government employees, first responders and educators.
Government Employees–Zero Interest Loan, Down Payment and Closing Cost Support
The District’s Employer-Assisted Housing Program offers eligible District employees a deferred, zero percent interest loan, in addition to a matching funds grant for down payment and closing costs to purchase their first single family home, condominium, or cooperative unit in the District as first-time homeowners in Washington, D.C.
This particular program allows applicants to already own real estate as long as it is outside of Washington, D.C.
EAHP– Up to $10,000 Grant for First Responders and Educators
First responders and educators can apply to receive up to $10,000 in down payment assistance in the form of a recoverable grant to those that agree to remain in their position for five-years of service.
Participants must maintain the property as their principal residence for five years. If those conditions are not met, the $10,000 grant converts to a deferred zero-interest loan.
Applicants can also receive a matching funds grant up to $15,000.
birdSEED – $5,000-$15,000 Grants
The birdSEED housing justice program provides down payment grants to eligible first-time home buyers who identify as Black, Indigenous, or a person of color (BIPOC) in Washington, D.C. and Philadelphia. It offers $5,000 to $15,000 grants throughout the year and will begin reissuing grants in 2025. Deadline to apply is March 31, 2025.
Additional opportunities for District residents to save big include the D.C. Tax Abatement Program which excuses eligible residents from paying property tax for five years, in addition to DC Open Doors which offers up to three percent for conventional or 3.5 percent of the FHA loan amount for both eligible first-time homebuyers and repeat homebuyers.
Learn about these and other programs from the Greater Washington Urban League’s Financial Empowerment Spark Series of webinars and check the Our House D.C. calendar to keep up to-date and more information.