Maryland SmartBuy 3.0: Maryland Down Payment Assistance (2026)

Maryland SmartBuy 3.0 is a specialized track of the Maryland Mortgage Program (MMP), administered by the Maryland Department of Housing & Community Development (DHCD) through its Community Development Administration (CDA). Unlike standard down payment assistance, SmartBuy is designed around one specific obstacle: existing student-loan debt. To participate, you must have at least $1,000 in outstanding student-loan debt.

Here's the core mechanic: when you buy a home using SmartBuy 3.0, the program contributes up to 15% of the home's purchase price, capped at $25,000, and that money goes straight toward paying off your student loans at the closing table. You must pay off the full remaining student-loan balance of at least one borrower at closing; if that balance exceeds $25,000 you pay the difference out of pocket. The student-debt payoff portion is a 0% loan with no monthly payment that is fully forgiven after 5 years if you stay in the home. This is what makes SmartBuy different — the goal is to clear a debt that's been suppressing your credit profile or debt-to-income ratio so you can qualify for and afford a home.

Because it sits inside the MMP, the underlying home loan is a standard Maryland Mortgage Program first mortgage, and the usual MMP rules apply: you must work with an approved Maryland Mortgage Program lender, and homebuyer education is typically required before closing.

A few real-world tips from working with Maryland buyers: First, start by pulling an exact payoff statement for each of your student loans — SmartBuy works on full-balance payoffs, so knowing your precise numbers up front prevents surprises. Second, don't pay your loans down to zero on your own right before applying, because you may need a remaining qualifying balance. Third, the $25,000 cap took effect June 1, 2026 under SmartBuy 3.0. Funding can be limited and is generally first-come, so timing matters.