Prince George's County just launched a brand-new program that provides up to $30,000 toward your first home — and if you follow the rules, you never pay a penny of it back. It's not a grant with a tiny check, and it's not a loan hanging over your head forever: it's a forgivable loan, with 20% wiped away for every year you live in the home. I'm Ronnie Gilmer, a REALTOR® with Samson Properties serving Maryland and Washington, DC. I read the entire program manual so you don't have to, and below I'll walk you through where it works, who may qualify, and the traps that can kill a deal.
How the $30,000 forgiveness actually works
The assistance is structured as a forgivable loan: 20% of the balance is forgiven for every year you live in the home as your primary residence — $6,000 in year one, $6,000 in year two, and so on — until the entire $30,000 is wiped off after year five (current as of 2026). That's equity you build with the county's money. The catch is that it only works if you stay: sell in year two and you owe back the unforgiven balance ($18,000 in that example), and if you stop living in the home and rent it out, that's treated as a default — the note starts charging 5.75% interest from the date of default. You'll also sign an annual certificate confirming the home is still your primary residence. This is a program for people buying a home to live in, not a rental.
Where it works: inside the Beltway only
This is not countywide. The program only works inside the Capital Beltway (I-495) in Prince George's County, and the county has published the exact list of eligible ZIP codes. If you've been renting in Hyattsville or College Park watching prices run away from you, this program was designed for you. Single-family homes, townhomes, and condos all qualify — resale, new construction, even foreclosures and short sales. And notably, there is no purchase price cap: your budget is set by your lender, not by the program.
Who qualifies — and the income trap to watch
There are three layers. First, you must be a first-time buyer, and you cannot own any other property — not a condo you rent out, not a share of a relative's house. Second, income — and this is where buyers get misled. The county's summary page says income up to 120% of area median income, but the program manual sets a band with both a floor and a ceiling: household income between 80% and 120% of AMI. For a household of four that's roughly $132,900 up to $199,300 (current as of 2026), and the county publishes the full chart by household size. If you're below the floor you're not out of the game — the county runs Pathway to Purchase for households under 80% of AMI, a separate program with different rules. The bigger trap: income is counted under the federal Part 5 definition, meaning every adult 18 or older living in the house counts toward household income even if they're not on the loan. Leaving a spouse or adult child off the mortgage does not leave their income out of the math — plan for that before you apply. Third, the county lists priority criteria: public-sector workers who live in the county, renters coming out of the designated ZIP codes, and households with multi-generational caregivers. Final approval is always subject to lender review.
First come, first READY — how to actually win
Funding is limited, and it's first complete approved file wins — not first to apply. Funds can be depleted while your paperwork sits unfinished, so do two things before you ever tour a house. One: complete the 8-hour homebuyer education course with a HUD-approved counseling agency — it's required before your lender can even submit, costs about $25 to $125, and that fee even counts toward your required contribution. Two: get a certified lender lined up — the program requires one, and because it's so new, many lenders haven't even heard of it yet. You'll need a minimum $1,000 of your own money in the deal, but almost everything counts toward it: your earnest money deposit, the appraisal, the home inspection (which the program requires anyway), your first year of insurance, the credit report, even the counseling class. One thing that never happens is cash back to you at the closing table — the program doesn't allow it. A first-hand tip on offer structure: the program encourages sellers to contribute up to 3% toward your closing costs, so on the right listing we're stacking a seller credit on top of the county's $30,000 — and asking for a slightly longer settlement window so the rest of the offer stays clean and strong. If you want a fast read on what you might combine, run the free Buyer Program Checker before you tour a single home.
Stacking with other programs
This program can be combined with programs that aren't from the county — a Maryland Mortgage Program first mortgage with the county's $30,000 behind it is a real structure. What you can't do is double-dip two Prince George's County programs on the same deal; you pick one. If your household is under 80% of AMI, compare this against the county's Pathway to Purchase program (up to $50,000, current as of 2026) on our Pathway to Purchase page, and see the broader local picture on our Prince George's County buyer guide.
Key takeaways
- Up to $30,000 forgiven at 20% per year — fully forgiven after 5 years in the home as your primary residence (current as of 2026).
- Inside-the-Beltway (I-495) Prince George's County only, in county-designated ZIP codes; no purchase price cap.
- Income must fall between 80% and 120% of area median income — a floor AND a ceiling (family of four: roughly $132,900–$199,300) — counted under Part 5 rules where every adult in the household counts.
- First complete approved file wins: finish the 8-hour HUD-approved course and line up a certified lender before house hunting.
- Stacks with the Maryland Mortgage Program, but never with a second Prince George's County program on the same deal.
Frequently asked questions
Do I ever have to pay the $30,000 back?
Not if you follow the rules: 20% is forgiven each year you live in the home as your primary residence, and after five years the full $30,000 is forgiven. If you sell early you repay the unforgiven balance, and if you move out and rent the home it's treated as a default with 5.75% interest from the default date.
Where does the program work?
Only inside the Capital Beltway (I-495) within Prince George's County, in the ZIP codes the county has designated. Single-family homes, townhomes, and condos qualify, including resale, new construction, foreclosures, and short sales — with no purchase price cap.
What income do I need to qualify?
Household income must fall between 80% and 120% of area median income — roughly $132,900 to $199,300 for a family of four (current as of 2026). Every adult 18 or older living in the home counts toward that number, even if they're not on the loan. Below the floor? Ask about the county's Pathway to Purchase program instead.
Can I combine this with the Maryland Mortgage Program?
Yes — a Maryland Mortgage Program first mortgage with the county's $30,000 behind it is a workable structure, and sellers can also contribute up to 3% toward closing costs. You just can't combine two Prince George's County programs on the same purchase.
See if you may qualify
Ready to find out what you may be eligible for? Start with Check My Buyer Eligibility, run the free Buyer Program Checker to see which programs might fit, or Book a Free Consultation and we'll map out a plan together — I'll tell you honestly whether this program fits or whether one of Maryland's other programs fits better, and connect you with a certified lender who actually knows it.
Last updated: August 2026. Program details change frequently — verify current guidelines with a licensed lender; this is not a commitment to lend or a guarantee of eligibility. Ronnie Gilmer · Samson Properties · Serving Maryland & DC · Not affiliated with any government agency or the Maryland Mortgage Program.