Yes, Maryland offers several programs to assist first-time homebuyers, making homeownership more accessible and affordable. These programs include tax credits, exemptions, and savings account options designed to ease the financial burden of purchasing a home.
Maryland Mortgage Program (MMP)
The Maryland Mortgage Program provides first-time homebuyers with access to affordable mortgage loans. Some key features include:
- 1st Time Advantage Direct: A 30-year, fixed-rate mortgage offering competitive interest rates. It's available to first-time buyers and repeat buyers in targeted areas.
- Down Payment Assistance: Programs like the 1st Time Advantage 6000 offer up to $6,000 in down payment assistance, which can be combined with other sources of funding.
- Eligibility Requirements: Applicants must meet certain income limits, credit score thresholds, and home purchase price limits, which vary by county and family size .
First-Time Homebuyer Savings Account
Maryland residents planning to buy their first home within the next 15 years can open a First-Time Homebuyer Savings Account. This account offers:
- Tax Deduction: Contributions up to $5,000 per year ($10,000 for married couples) are deductible on your Maryland state income tax return.
- Tax-Free Earnings: Interest earned on the account is exempt from Maryland state income tax.
- Qualified Expenses: Funds can be used for down payments, closing costs, and other home purchase-related expenses .
Property Tax Exemptions
First-time homebuyers in Maryland may be eligible for property tax exemptions, which can reduce the amount of property taxes owed. These exemptions are typically available to:
- Veterans: Certain veterans may qualify for full or partial property tax exemptions.
- Surviving Spouses: Spouses of deceased veterans may also be eligible for exemptions.
- Disabled Individuals: Homeowners with disabilities may qualify for property tax relief .
Local Assistance Programs
In addition to state-wide programs, many counties and cities in Maryland offer local assistance programs for first-time homebuyers. For example:
- Baltimore City: Offers various programs to assist with down payments and closing costs.
- Montgomery County: Provides down payment assistance and homebuyer education courses.
- Prince George's County: Offers financial assistance and counseling services for first-time buyers .
Conclusion
Maryland provides a range of programs to support first-time homebuyers, from affordable mortgage options to tax-advantaged savings accounts and property tax exemptions. It's advisable to explore these programs and consult with a housing counselor or lender to determine which options best suit your financial situation and homeownership goals.
