The Settlement Downpayment Loan Program (SDLP) is Howard County's flagship down payment assistance program, and most buyers have never heard of it. With income limits that reach as high as $213,418 and a maximum purchase price of $683,977, this program is built for the real cost of buying a home in Howard County today.
The Settlement Downpayment Loan Program (SDLP) is run by the Howard County Department of Housing and Community Development. It provides down payment and closing cost assistance to eligible buyers purchasing a home anywhere in Howard County, from Columbia and Ellicott City to Elkridge, Laurel, and beyond.
Here is what makes the SDLP stand out among Maryland's county programs. First, the assistance is substantial: depending on the loan type you qualify for, help can reach up to $40,000. Second, the income limits are realistic for Howard County, ranging as high as $213,418 depending on household size and loan program. That means many buyers who assume they "make too much" for assistance actually qualify. Third, unlike many county programs that exhaust their budget mid-year, the SDLP rarely runs out of funds.
The program pairs with a fixed-rate primary mortgage from a participating lender. Your lender handles the application and reserves the funds directly with the county, which keeps the process smooth for you.
The SDLP is really an umbrella that contains five different loan programs, and some of them include forgivable funds. Which one you qualify for depends on your household income and situation. Here is the quick map:
For first-time homebuyers at the lower end of the SDLP income tiers, typically offering the deepest assistance.
For first-time homebuyers in the middle income tiers of the program.
For first-time homebuyers in the upper income tiers, keeping assistance available even at higher Howard County incomes.
For buyers purchasing in designated revitalization areas. You do not need to be a first-time buyer.
For eligible workforce buyers. You do not need to be a first-time buyer to use this option.
That is exactly what I do. In one conversation I can tell you which SDLP loan you likely qualify for and what it is worth to you. Ask Mike →
SDLP limits are set by Howard County and vary by household size and loan program. The headline numbers for 2026:
| Limit | 2026 amount |
|---|---|
| Maximum assistance | Up to $40,000 (varies by loan program) |
| Household income limit | Up to $213,418 (varies by household size and loan program) |
| Maximum home purchase price | $683,977 |
| Minimum buyer contribution | $1,000 toward settlement or down payment, plus one month's mortgage payment (PITI) in savings |
Limits are set by Howard County and change periodically. See the county's official SDLP program page for the current information packet, or ask Mike for the current numbers for your household size.
About that homebuyer education class: it is required and must be completed before settlement, but I strongly recommend taking it before you even write an offer. It is one less moving part to have to deal with while you're under contract and it will provide you with additional knowledge and clarity to empower you on your home buying journey! Here is the county's homebuyer education schedule.
Qualified buyers can combine the SDLP with Howard County's Moderate Income Housing Unit (MIHU) program, which allows select qualified applicants to purchase a home in Howard County at a reduced price. Layering a below-market purchase price with up to $40,000 in SDLP assistance is one of the most powerful affordability combinations anywhere in Maryland.
Depending on your situation, statewide options like the Maryland Mortgage Program may also fit into your plan. This is exactly the kind of program-stacking strategy I map out for buyers every day. See every Maryland program by county here.
Howard County is one of Maryland's most competitive housing markets, and buyers using assistance programs sometimes worry their offer looks weaker. Here is the good news: the SDLP is more streamlined than many county programs, and with the right preparation we can close in as little as 30 days when needed to help you win in a multiple-offer situation.
The formula for winning here is simple to say and hard to do alone: be educated on your programs, be fully pre-approved (not just pre-qualified), work with a great Realtor, and walk in with a strategy. That is the exact preparation I build with my buyers before they make their first offer.
In one free, no-pressure conversation I will tell you which SDLP loan you likely qualify for, what it is worth in dollars, and how it stacks with other programs. No cost, no obligation.
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 and specializes in Maryland down payment assistance programs like the Howard County SDLP.
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 likely qualify for and what they are worth to you.
