How to Qualify for First-Time Home Buyer Programs in Maryland

Buying your first home in Maryland is a big step, and the state offers strong programs to make the process easier. The key is knowing whether you qualify and what requirements you’ll need to meet. This guide walks you through how Maryland defines a first-time home buyer, what happens if you owned a home in another state, and the basic steps to get started.

What “First-Time Home Buyer” Means in Maryland

In Maryland, a first-time home buyer isn’t always someone who has never owned a home. For most state programs, including the Maryland Mortgage Program (MMP), you’re considered a first-time buyer if you:

Have not owned and lived in a residential property as your primary residence within the past three years.

That three-year “look-back” period is what matters most. There are also exceptions, such as certain designated Targeted Areas and some veteran benefits, where the first-time requirement may be waived.

Can You Be a First-Time Home Buyer in Maryland if You Owned a Home in Another State?

This is one of the most common questions buyers ask, especially people relocating to Maryland. The short answer is: yes, you can still qualify as a first-time home buyer in Maryland even if you owned a home in another state — under the right circumstances.

Maryland’s definition focuses on your ownership of a principal residence, not the location. That means the state is looking at whether you owned and occupied a home as your main residence in the last three years, anywhere, not just in Maryland.

How This Works in Real Life

If you owned a home in another state but sold it more than three years ago, and you haven’t owned and lived in another
primary residence since, you can usually be treated as a first-time home buyer in Maryland.
If you still own that home, or you sold it within the last three years, you typically will not qualify as a first-time buyer under the main MMP programs.
If the property you owned was strictly a vacation home or an investment property (and not your primary residence), it
may be viewed differently, because the rule is based on principal residence.
Some Maryland options, such as certain Flex loan products, allow repeat buyers, so even if you don’t meet the first-time definition, you may still qualify for assistance.

The bottom line: if you used to own a home in another state and you’ve been out of homeownership for at least three years, Maryland can still treat you as a first-time buyer, even if this is your first home in Maryland but not your first home ever.

Key Eligibility Requirements for Maryland First-Time Buyer Programs

Once you understand the first-time home buyer definition, the next step is to make sure you fit the rest of the standard criteria. While each program is a little different, you’ll usually see a few common themes.

1. The Home Must Be Your Primary Residence

To qualify for most Maryland first-time home buyer programs, the property you purchase must be:

Your primary residence (where you actually live)
Not a vacation home
Not an investment or rental property you don’t personally occupy

Many programs require you to move in within a certain time frame after closing and maintain owner-occupancy for a period of time.

2. Income Limits and Purchase Price Caps

Maryland and many local programs use income and purchase price limits to keep assistance targeted to the buyers who need it most. These limits:

Vary by county and sometimes by city
Often depend on your household size
Can differ between urban, suburban, and rural areas

Your lender or local housing agency can help you look up the specific limits for the area where you want to buy.

3. Credit Score and Debt-to-Income Ratio

While exact numbers depend on the lender and loan type, you can expect:

A minimum credit score requirement, commonly somewhere in the mid-600s
A debt-to-income ratio (DTI) that stays within program or lender guidelines
Proof that you have enough funds for your share of the
down payment, closing costs, and reserves, even if you’re using assistance

If your credit needs work, it’s often better to address that first so you can qualify for more options and better interest rates.

4. Homebuyer Education

Many Maryland first-time buyer programs require a homebuyer education course or counseling session. These are usually:

Offered online or in person
Completed before closing (sometimes before loan reservation)
Designed to help you understand budgeting, mortgages, inspections, closing, and long-term
homeownership

You’ll normally receive a certificate at the end, which your lender will need for your file.

5. Using a Participating Lender

To access many state-backed programs, you’ll work with an approved participating lender. They:

Verify your first-time buyer status and past ownership history
Check your income, credit, and debt
Explain which Maryland programs and local assistance options you qualify for

Choosing a lender who regularly works with Maryland’s programs can make the process smoother and help you avoid missed opportunities.

Popular First-Time Home Buyer Programs in Maryland

The state and individual counties offer a number of different programs. A few of the better-known options include:

Maryland Mortgage Program (MMP) –
30-year fixed-rate mortgages with options for down payment and closing cost help and one of my favorite programs.
1st Time Advantage Loans –
Targeted to first-time buyers, often with lower interest rates and assistance features.
Down Payment Assistance (DPA) –
Grants or deferred loans that help cover upfront costs.
Flex Loans –
Designed for both first-time and repeat buyers, often with flexible assistance options.
Local and County Programs –
Many counties and cities (such as those in Harford County and surrounding areas) offer
additional incentives or grants that can sometimes be layered with state programs.

Because each program has its own rules, it’s smart to have your lender and your realtor coordinate early in the process.

A Simple Step-by-Step Path to Qualifying

Here’s a straightforward way to approach the process as a first-time buyer in Maryland:

Confirm your first-time status.
Look back three years and verify when you last owned and lived in a home as your primary residence, even if it was in another state.
Review your finances.
Pull your credit, estimate your debt-to-income ratio, and get a rough idea of what you can comfortably afford each month.
Complete homebuyer education.
Take an approved course so you’re prepared and able to access programs that require it.
Talk with a participating lender.
Ask specifically about Maryland first-time home buyer programs and any local incentives in the area you want to buy.
Get pre-approved.
This gives you a realistic price range and strengthens your offer once you start home shopping.
Work with a local realtor.
Choose an agent who knows Maryland programs, local neighborhoods, and how to structure offers that align with assistance timelines and requirements.
Find a qualifying home.
Make sure the property meets any program-specific rules related to price limits, condition, and
occupancy.
Apply for assistance.
Your lender will help you submit the necessary paperwork for any down payment or closing cost assistance you’re using.
Close and move in.
Once you close, move in within the required time frame and maintain the home as your primary residence as long as the program requires.

Common Questions Maryland Buyers Ask

“Does buying in another state disqualify me?”

Not automatically. The key factor is when you last owned and lived in a primary residence, not where it was. If it
has been more than three years, you may still be considered a first-time buyer under many Maryland programs.

“What if my income is too high?”

You may still have options. Some programs, like certain Flex products, can allow higher incomes or repeat buyers. Your lender can walk you through which programs fit your situation.

“Do county programs follow the same rules?”

Not always. Local and county-level programs often set their own income limits, price caps, and first-time home buyer definitions. It’s important to review both state and local guidelines.

Need Help as a First-Time Home Buyer in Maryland?

If you’re feeling unsure about whether you qualify as a first-time home buyer in Maryland, especially if you’ve owned a home in another state before — having a local expert in your corner makes a huge difference. Leigh Kaminsky, a local realtor with American Premier Realty in Bel Air, MD, helps first-time buyers every day across Harford County and the surrounding areas. Leigh understands how Maryland’s first-time buyer and down payment assistance programs work, how your past homeownership in another state affects your eligibility, and how to structure offers that align with lender and program requirements.

Whether you’re buying your very first home or your first home in Maryland, Leigh can:

Connect you with trusted local lenders familiar with Maryland Mortgage Program options
Help you understand if you meet the three-year “first-time buyer” rule
Guide you to neighborhoods and price ranges that fit both your budget and program limits
Walk you step-by-step from pre-approval to closing day

If you’re thinking about buying a home in Bel Air, MD or anywhere in the surrounding area, reach out to Leigh Kaminsky at American Premier Realty for straightforward, local guidance on your first-time home buyer options in Maryland.

How to Qualify as a First-Time Home Buyer in Maryland