Maryland just launched a home loan built for the people who protect, rescue, and teach in our communities. Eligible first responders and teachers can obtain down payment assistance of 5% of the mortgage amount, up to $41,637, to apply toward their down payment and closing costs at a 0% interest rate with no monthly payments. It works like the popular 1st Time Advantage 5% loan, but eligible first responders and teachers receive a lower interest rate on their first mortgage, and over thirty years that is where the real money is. Here is how it works and how we set you up to win.
The First Homes for First Responders and Teachers program is a new initiative from the State of Maryland, launched in 2026 and administered through the Maryland Mortgage Program (MMP), the state's flagship homebuying program run by the Maryland Department of Housing and Community Development. It was built for the people who keep Maryland running: career and volunteer firefighters, police officers, EMTs and paramedics, rescue squad members, and full-time teachers and school counselors who want to buy their first home in or around the communities they serve.
Here is what makes this program stand out. First, the first mortgage rate is set below the standard 1st Time Advantage 5% Loan rate, which lowers your monthly payment for the entire life of the loan. Second, it layers in real down payment help: a second loan equal to 5% of your first mortgage amount, up to $41,637, that carries 0% interest and requires no monthly payment. Third, it reaches further up the income scale than most people expect, with limits as high as $232,540 depending on your county and household size, so plenty of two-income households that include a first responder or teacher qualify without ever realizing they could.
Maryland has offered first responder and educator incentives in various forms over the years, but this is the first time the state has packaged statewide 5% down payment assistance into a single program aimed squarely at these careers. I see a lot of mortgage products geared toward teachers and first responders that are really gimmicky, but I can safely say this one is the real deal! If you have been searching for a Maryland first responder home loan, a teacher down payment assistance program, or first-time homebuyer help for police, firefighters, EMS, or educators, this is the new gold standard.
The program pairs with a 30-year fixed-rate first mortgage from an approved Maryland Mortgage Program lender (First Home Mortgage has been the #1 lender for Maryland Mortgage Program loans several years in a row). Your lender handles the application and reserves the funds, which keeps the process clean for you. The Maryland Mortgage Program sets the interest rate, not your lender, so the rate is the same no matter who you work with. This is one of my favorite features of the program: you do not have to worry about rate shopping, you can simply focus on working with the highest quality loan officer who is an approved MMP lender. You can also buy anywhere in Maryland if you meet the program's income and purchase price limits.
There are two moving parts here, and they work together. The first is your primary mortgage: a 30-year fixed-rate loan (the Maryland Mortgage Program does not allow adjustable-rate mortgages or shorter loan terms). The second is the assistance loan, an amount equal to 5% of that first mortgage (up to $41,637) that goes straight toward your down payment and closing costs.
One clarification, because it trips people up: the 0% interest and no-payment terms apply only to the assistance funds, which sit in second lien position behind your main mortgage. Your first mortgage, the first lien, still carries its own interest rate and monthly payment like any home loan. The assistance loan sits quietly behind it, with nothing due until you sell, refinance, or transfer the home, or it stops being your primary residence.
The program is for first-time homebuyers who work full time in an eligible first responder or teacher role in Maryland. It also covers people relocating to Maryland for one of these roles, as long as they have a signed, non-contingent job offer from a Maryland employer in hand.
"First-time buyer" is more forgiving than it sounds. The Maryland Mortgage Program counts you as a first-time buyer if you have not owned residential property in the last three years, so plenty of people who owned a home years ago still qualify and do not realize it. If you are a veteran using your exemption for the first time, the first-time rule can be waived entirely.
Full-time employees of a public safety agency, fire department, or ambulance service, including:
Full-time, state-certified classroom teachers or school counselors who are employed by an accredited or state-recognized public, private, or vocational school and serve students in pre-K through grade 12. An MSDE teaching license or school accreditation paperwork may be requested to confirm eligibility.
Here is the single biggest thing that trips buyers up on any Maryland Mortgage Program loan, and it is worth slowing down on. MMP qualifies you on total household income, meaning the combined income of everyone 18 or older who will live in the home, not just the people signing the mortgage. Those are two different numbers, and buyers almost always assume they are the same.
Practically, if a parent, partner, or roommate will be living in the home, their income generally counts toward the limit even if they will not be on the loan. And "income" here is broader than a paystub. This is exactly how someone finds out late in the process that they are over the limit on a technicality, after they have already paid for an appraisal and a home inspection. This is such an important part to get right, and this calculation can be really non-intuitive, especially if you work overtime or receive commissions or bonuses! Before you spend weeks house hunting around a program you may or may not qualify for, let me run the household income calculation for you. It takes one conversation, and it is the difference between a plan and a guess.
MMP income limits are based on total household income and change by county and household size. Households of 1 to 2 people have one limit; households of 3 or more have a higher one. Federally designated Targeted Areas carry higher limits, shown in their own columns. The figures below are the 2026 limits, effective June 24, 2026.
| County | 1 to 2 peopleNon-Targeted | 1 to 2 peopleTargeted | 3+ peopleNon-Targeted | 3+ peopleTargeted |
|---|---|---|---|---|
| Allegany * | N/A | $164,520 | N/A | $191,940 |
| Anne Arundel | $140,759 | $164,520 | $161,873 | $191,940 |
| Baltimore City * | N/A | $164,520 | N/A | $191,940 |
| Baltimore County | $140,759 | $164,520 | $161,873 | $191,940 |
| Calvert | $190,320 | N/A | $222,040 | N/A |
| Caroline * | N/A | $164,520 | N/A | $191,940 |
| Carroll | $140,759 | N/A | $161,873 | N/A |
| Cecil | $137,100 | N/A | $157,665 | N/A |
| Charles | $199,320 | N/A | $232,540 | N/A |
| Dorchester * | N/A | $164,520 | N/A | $191,940 |
| Frederick | $199,320 | $199,320 | $232,540 | $232,540 |
| Garrett * | N/A | $164,520 | N/A | $191,940 |
| Harford | $140,759 | $164,520 | $161,873 | $191,940 |
| Howard | $140,759 | N/A | $161,873 | N/A |
| Kent * | N/A | $164,520 | N/A | $191,940 |
| Montgomery | $199,320 | $199,320 | $232,540 | $232,540 |
| Prince George's | $199,320 | $199,320 | $232,540 | $232,540 |
| Queen Anne's | $140,759 | N/A | $161,873 | N/A |
| St. Mary's | $141,600 | N/A | $162,840 | N/A |
| Somerset * | N/A | $164,520 | N/A | $191,940 |
| Talbot | $137,100 | $164,520 | $157,665 | $191,940 |
| Washington | $137,100 | $164,520 | $157,665 | $191,940 |
| Wicomico | $137,100 | $164,520 | $157,665 | $191,940 |
| Worcester | $137,100 | $164,520 | $157,665 | $191,940 |
* This county is entirely a federally designated Targeted Area, so only the targeted-area limits apply. Targeted Areas are census areas where the program allows higher limits, and they cover part of some counties and all of others. Figures are 2026 Maryland Mortgage Program limits, effective June 24, 2026, and are subject to change.
The program also caps the purchase price and the amount you can finance, and those caps vary by county. The table below shows the 2026 maximum acquisition cost (standard and targeted areas) and the CDA maximum mortgage limit for each county.
| County | Max acquisition costNon-Targeted | Max acquisition costTargeted | CDA max mortgage limit |
|---|---|---|---|
| Allegany * | N/A | $692,211 | $541,287 |
| Anne Arundel | $782,118 | $955,922 | $747,500 |
| Baltimore City * | N/A | $955,922 | $747,500 |
| Baltimore County | $782,118 | $955,922 | $747,500 |
| Calvert | $1,255,921 | N/A | $832,750 |
| Caroline * | N/A | $692,211 | $541,287 |
| Carroll | $782,118 | N/A | $747,500 |
| Cecil | $659,385 | N/A | $630,200 |
| Charles | $1,306,974 | N/A | $832,750 |
| Dorchester * | N/A | $692,211 | $541,287 |
| Frederick | $1,306,974 | $1,597,413 | $832,750 |
| Garrett * | N/A | $692,211 | $541,287 |
| Harford | $782,118 | $955,922 | $747,500 |
| Howard | $782,118 | N/A | $747,500 |
| Kent * | N/A | $692,211 | $541,287 |
| Montgomery | $1,306,974 | $1,597,413 | $832,750 |
| Prince George's | $1,306,974 | $1,597,413 | $832,750 |
| Queen Anne's | $782,118 | N/A | $747,500 |
| St. Mary's | $566,354 | N/A | $541,287 |
| Somerset * | N/A | $692,211 | $541,287 |
| Talbot | $566,354 | $692,211 | $541,287 |
| Washington | $566,354 | $692,211 | $541,287 |
| Wicomico | $566,354 | $692,211 | $541,287 |
| Worcester | $566,354 | $692,211 | $541,287 |
* Entirely a federally designated Targeted Area, so only the targeted column applies. The CDA maximum mortgage limit is the most you can finance through the program; the overall maximum loan amount is $832,750. Figures are 2026 limits, effective June 24, 2026, and are subject to change.
The maximum purchase price also varies by county, reaching as high as $1,597,413 in the highest-cost jurisdictions, and the maximum loan amount is $832,750. When my clients are close to a limit, or not sure which figure applies to the home they want, I ask that they send me a quick text or email, or give me a call, so I can clarify before they write an offer.
About that homebuyer education class: it is required, but the Maryland Mortgage Program version is refreshingly painless. It is a short, self-paced online class you can take virtually, and it can even be finished after your offer is accepted. My advice is the same as it is on every program: take it early anyway. It is one less moving part once you are under contract, and the knowledge helps you make better calls on the biggest purchase of your life.
There is a piece of the down payment assistance process that a lot of buyers do not see coming. When you use assistance, you do not just go through the typical mortgage paperwork with your lender, you also go through additional paperwork and underwriting through the Maryland Mortgage Program. Luckily, First Home Mortgage is the top rated lender for Maryland Mortgage Program loans, and we can close these in as little as 21 days, which is very competitive. This is exactly why it is my favorite program, because some programs take 45 to 60, or even 90 days to close.
If the home you fall in love with ends up in a multiple offer situation, the ability to close quickly is often the difference maker in winning the bid on your perfect home. Even if there is a "better" program out there, it may not fit the seller's timeline. This is why I help my clients analyze as many options as possible, so we can pivot as needed on a case by case basis. Getting "the most money" or the "lowest interest rate" is important, but usually not as important as getting the right home.
Tell me your job and where you want to buy, and I will help you determine whether you are eligible for First Homes for First Responders and Teachers, if it is your best move, what it is worth in dollars, and how it stacks against your other options. No cost, no obligation.
And if it turns out this is not the strongest play for your situation, that is worth knowing too. I work across every Maryland program, county-specific programs, national programs, and First Home Mortgage exclusive programs, so if a different MMP product or a county down payment assistance program makes more sense, I will break it down for you. See every Maryland program by county here.
A quick, honest rundown on stacking, because the rules here are specific. This program is a complete package on its own, so it cannot be combined with other Maryland Mortgage Program products or the MMP Partner Match Program. You are not layering it on top of other MMP pieces.
What it can combine with is outside help: grants or loans from employers, builders, or non-profits, as long as they meet MMP, U.S. Bank, and investor guidelines. If your department, school system, union, or a builder you are considering offers a homebuyer benefit, bring it up early and we will map out exactly what fits.
Some agencies, school systems, and unions offer their own homebuyer grants or forgivable loans. Many can layer on top of this program if they meet the guidelines.
Builder incentives and non-profit down payment grants can often be combined, which stretches your cash to close even further.
The right combination depends on your role, income, and the home. Let's map yours →
Maryland native, licensed loan officer for nearly a decade, hundreds of families served, and one of the highest-rated loan officers on Google. Michael is with First Home Mortgage, a top Maryland Mortgage Program lender, and specializes in stacking Maryland's down payment assistance programs for buyers across the state, including new options like First Homes for First Responders and Teachers.
Michael Basch · NMLS #1721748 · First Home Mortgage · NMLS #71603
Tell me a little about your situation and I will follow up, usually within one business day, with which programs you may qualify for and what they are worth to you.
