Buying your first home can be an exciting milestone — but coming up with the money for a down payment and closing costs can sometimes feel like a major hurdle.
For Maryland teachers and first responders, there’s now a new option to help make homeownership more attainable.
The Maryland Mortgage Program (MMP) recently launched the First Homes for First Responders and Teachers initiative, a new first mortgage program designed specifically for eligible first-time homebuyers working in these important professions.
Here’s what Maryland homebuyers should know.
- What Is the First Homes for First Responders and Teachers Program?
The First Homes for First Responders and Teachers program is a new MMP first mortgage option that offers eligible borrowers an interest rate 0.50% lower than the standard MMP 1st Time Advantage 5% Loan product.
The program also includes down payment and closing cost assistance equal to 5% of the first mortgage amount.
The assistance comes in the form of a 0% interest, deferred second loan, meaning there are no monthly payments on the assistance loan while the borrower maintains the first mortgage and lives in the home.
The second loan is generally repaid when the first mortgage ends, such as through a sale, refinance, or transfer of the property.
- Who Is Eligible?
The program is available to first-time homebuyers who meet MMP’s standard eligibility requirements and are working full-time in an eligible teacher or first responder position in Maryland.
Eligible first responders can include:
- Firefighters
- Certified EMTs and paramedics
- Police officers
- 9-1-1 specialists
- Rescue squad members
- Other qualifying public safety professionals
Eligible teachers include full-time, state-certified classroom teachers and school counselors serving students in pre-K–12 at an accredited or state-recognized public, private, or vocational school.
The program can also accommodate individuals moving to Maryland for an eligible position, provided they have a signed, non-contingent employment offer from a qualifying Maryland employer.
- How Does the 5% Assistance Work?
One of the biggest benefits of the program is the 5% down payment and closing cost assistance.
The assistance is based on the amount of the first mortgage.
For example, if a homebuyer has a $300,000 first mortgage, 5% assistance would equal $15,000.
That money can help with eligible down payment and closing costs, helping reduce the amount of cash a first-time buyer needs to bring to the table.
The assistance carries 0% interest and is deferred, so there are no monthly payments on the second loan while the borrower continues to meet the program requirements.
- What Other Requirements Apply?
Being a teacher or first responder is only part of the qualification process.
Borrowers must also meet the Maryland Mortgage Program’s standard eligibility requirements, which include applicable:
- Income limits
- Credit requirements
- Purchase price limits
- First-time homebuyer requirements
- Homebuyer education requirements
- Lender and mortgage insurance requirements
Employment eligibility must also be verified through an acceptable Verification of Employment (VOE) or an approved third-party income and employment verification report.
- What Does This Mean for First-Time Buyers?
For eligible Maryland teachers and first responders, this program combines two valuable benefits:
A lower first mortgage interest rate + 5% down payment and closing cost assistance.
That combination may help reduce the upfront cash needed to purchase a home while also providing a lower interest rate than the standard MMP 1st Time Advantage 5% product.
Every borrower’s situation is different, so the actual loan amount, interest rate, cash-to-close, and eligibility will depend on the complete loan scenario and current MMP requirements.
Ready to Explore Your Options?
If you’re a Maryland teacher or first responder thinking about buying your first home, it’s worth finding out whether this new MMP program may be an option for you.
Ready to get started? Contact our team to discuss your homebuying goals and see what programs you may qualify for.