Best First-Time Buyer Lenders in Maryland 2026: Top 8
Angela Thompson
Maryland First-Time Buyer Expert | 14+ Years Experience
January 22, 2026
Looking for the best mortgage lenders for first-time buyers in Maryland? Maryland has 2,200+ lenders, but only 8 specialize in first-time buyers with low down payments, DPA programs, and Baltimore-area expertise.
6.30%
Average MD Rate
3%
Min Down Payment
$766K
Max Loan Limit
$45K
Avg DPA Grant
🏆 Top 8 Lenders for First-Time Buyers in Maryland 2026
Better.com - Best for Baltimore First-Time Buyers
4,800+ MD loans funded
Why #1 for First-Time Buyers:
- 💰 Lowest rates: 6.10%-6.30% APR
- 🎯 3% down conventional loans
- 📱 100% online process
- 🏆 Connects with MD DPA programs
- ⚡ Pre-approval in 3 minutes
Best For:
Tech-savvy Baltimore first-time buyers who want lowest rates + fast process
📊 Maryland Loan Limits 2026 by County
| County | Major Area | 2026 Loan Limit |
|---|---|---|
| Baltimore City | Baltimore | $766,550 ⭐ |
| Montgomery | Rockville | $766,550 ⭐ |
| Howard | Columbia | $498,257 |
| Anne Arundel | Annapolis | $498,257 |
💰 Maryland First-Time Buyer Programs 2026
1. Maryland Mortgage Program (MMP)
Grant Amount:
Up to $20,000 (0% interest, deferred payment)
Income Limits:
Up to $175,000 (Baltimore area)
Available statewide. Must complete homebuyer education course.
2. Maryland HomeCredit
Tax Credit:
Up to $2,000/year for 30 years
Total Benefit:
Up to $60,000 over life of loan
Federal tax credit. Reduces federal taxes owed each year.
3. Fannie Mae HomeReady (3% Down)
Down Payment:
3% minimum ($22,997 on $766K)
Credit Score:
620+ required
Income limits: 80% of area median income. Lower PMI than standard conventional.
❓ FAQ: First-Time Buyers Maryland 2026
Can I afford a home in Baltimore as a first-time buyer?
YES - with the right programs and strategies.
Example: $400,000 Baltimore Home
- 3% down: $12,000
- Maryland MMP grant: $20,000
- Net down payment: $0 (grant covers everything + closing)
- Monthly payment: $2,600 (PITI)
- Income needed: $78,000/year (40% DTI)
What is the Maryland Mortgage Program?
Maryland Mortgage Program (MMP) is Maryland's state housing finance agency offering low-rate mortgages + down payment assistance.
Key Benefits:
- Below-market rates (6.00%-6.20% vs 6.30% market)
- Up to $20,000 down payment assistance
- 3% down minimum
- Income limits: Up to $175,000 (Baltimore area)
- Must complete homebuyer education
Should I buy in Baltimore City or suburbs?
Depends on budget and lifestyle:
Baltimore City (Better for First-Time Buyers):
- Lower prices: $250K-$400K
- More DPA programs available
- Walkable neighborhoods
- Higher property taxes
Suburbs (Columbia, Towson):
- Higher prices: $400K-$600K
- Better schools
- More space
- Lower property taxes