The Pathway to Purchase (P2P) program gives eligible first-time buyers in Prince George's County up to $50,000 for down payment and closing costs as a 0% interest loan with no monthly payments, and it is fully forgiven after 15 years in the home. It is one of the most generous programs in Maryland. It is also one of the most detailed, with a specific inspection, a strict timeline, and funds that move fast. Here is the full playbook.
Pathway to Purchase is Prince George's County's flagship homeownership program, run by the county's Department of Housing and Community Development (DHCD) and funded through the federal HOME Investment Partnership. It provides up to $50,000 to eligible first-time homebuyers purchasing anywhere in the county, and the money can go toward your down payment, closing costs, or even reducing your mortgage principal.
The structure is what makes it special. The assistance is a 0% interest deferred loan with no monthly payments, and unlike many programs, there is no minimum cash contribution required from you. Stay in the home and the loan forgives itself completely over 15 years. The county put more than $1.2 million into the hands of 33 homebuyers in Fiscal Year 2026, and demand keeps growing.
Eligible properties include single-family homes, townhomes, and condos in every zip code of Prince George's County, and that includes new construction, resales, foreclosures, and short sales. Your first mortgage must be a fixed-rate FHA or conventional loan, and the home must be your primary residence.
If you stay in the home as your primary residence, you may never repay a dime. Nothing is forgiven during years 1 through 5, and then the county forgives 10% of the loan every year starting in year 6. Sell, transfer, refinance with cash out, or move out before the 15-year mark and you repay whatever has not yet been forgiven. Here is the county's actual schedule:
| Time in the home | Balance you would repay |
|---|---|
| Less than 6 years | 100% |
| 6 to 7 years | 90% |
| 7 to 8 years | 80% |
| 8 to 9 years | 70% |
| 9 to 10 years | 60% |
| 10 to 11 years | 50% |
| 11 to 12 years | 40% |
| 12 to 13 years | 30% |
| 13 to 14 years | 20% |
| 14 to 15 years | 10% |
| 15 years or more | 0% - fully forgiven! |
The county records a covenant on the property and confirms residency annually, so the primary residence rule is enforced, not a formality. In the event of default, the outstanding balance accrues 5.75% interest from the date of default.
| Limit | Current amount |
|---|---|
| Household income | 80% of Area Median Income, adjusted for household size (updated annually by HUD) |
| Max purchase price: resale | $448,000 (no exceptions) |
| Max purchase price: new construction | $485,000 (no exceptions) |
| Front-end debt-to-income | 35% maximum, no exceptions |
| Back-end debt-to-income | 47% maximum, no exceptions |
One detail that surprises a lot of buyers: the county counts the income of every household member age 18 or older, even people who are not on the mortgage. If your spouse, adult child, or parent will live in the home, their income counts toward the 80% AMI limit. This is exactly the kind of nuance where a quick conversation saves you weeks of wasted effort, so let me run your numbers before you fall in love with a house.
P2P does not set a specific credit score, but you must qualify for your first mortgage, and if you combine P2P with the Maryland Mortgage Program, MMP's credit requirements apply. The county is blunt that P2P is not a program for buyers who cannot otherwise get approved, and honestly, that is where good preparation comes in. If your credit needs work, tell me early and we will build the plan to get you there!
Every P2P home must pass a Housing Quality Standards (HQS) inspection before your application package can even be submitted. This is a federal HUD standard, and in Prince George's County it is performed by American Property Consultants (APC). The initial inspection costs $139 (paid by you when you request it), a missed appointment or utilities-off situation costs another $139, and each follow-up inspection after repairs runs $65. The county recommends requesting it as soon as your contract is ratified and before the appraisal.
HQS is specific and stricter than buyers expect. It covers the things you would guess, like a sound roof and structure, working plumbing, heat, and electric, functioning smoke detectors, and no mold or peeling paint (a big one in homes built before 1978). But it also catches small stuff. I have seen a deal where the seller had to re-caulk the bathtub before the loan could close! Any deficiency the inspector flags as a threat to life, health, or safety must be corrected, and here is the strategic part: the seller has to be willing to make those repairs. The county explicitly warns buyers never to pay for repairs on a home they do not own yet, because that money cannot be reimbursed at closing. So if a seller signals they will not lift a finger on repairs, that property is probably not a P2P fit, and we factor that into which homes you target and how we write the offer.
Two realities separate the buyers who win with P2P from the ones who get burned. First, the money is limited and moves fast. The county just received new funding of $500,000 for the second half of 2026. Do the math: if ten buyers each receive the full $50,000, the pot is empty. And here is the part nobody tells you: funds are not reserved for you when you apply for an inspection or even when your offer is accepted. The county funds applications on a first-come, first-ready basis, and your funds are only secured once your lender submits a complete package with your fully ratified contract. I have personally seen a buyer get an offer accepted and lose out because funds ran dry while the file was being assembled. That is exactly why my team builds your file to be complete and clean before you ever write an offer, so the moment you ratify, we move.
Second, the timeline is real. The county requires 21 business days to process a complete application (federal holidays not included), plus 7 more business days in their closing department, and none of that counts your lender's own underwriting time. The county itself suggests writing contracts of at least 60 days, and in practice these purchases often take 60 to 90 days to close. In a multiple-offer situation, a 90-day close is a tougher sell to a seller than a 30-day close, so your offer strategy, your agent, and your preparation all have to be dialed in. Sometimes the winning play is P2P. Sometimes it is a faster program that gets you the house. That is a strategy conversation worth having before you write offers, not after you lose one.
In one free, no-pressure conversation I will tell you if P2P fits your income and timeline, what it is worth to you in dollars, and exactly what we need ready so your file is first in line when you find the house.
P2P applications can only be submitted by a Certified Participating Lender, and it goes further than that: each individual loan officer must complete the county's training and hold a P2P certification number that appears on every application. A random lender who has never touched this program cannot submit your file, and a lender learning it on the fly is how timelines slip and funds get missed.
I have personally completed the Pathway to Purchase training, and my team at First Home Mortgage works these files regularly. We know the submission checklist, the inspection flow, and the pace the county expects. Lenders certified through the Maryland Mortgage Program also qualify, which fits perfectly with how we often structure these deals anyway.
And on that note: yes, P2P stacks with the Maryland Mortgage Program. The county designed P2P to work in collaboration with MMP, and the program manual even includes MMP Partner Match information. Combining the two can layer state assistance on top of the county's $50,000, though MMP's credit requirements and origination process apply when you do. Depending on your situation, P2P alone, P2P plus MMP, or MMP by itself might be the winning play. See every Maryland program by county here, or reach out and I will map your exact options.
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, is trained and certified on the Pathway to Purchase program, and specializes in Maryland down payment assistance.
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.
