The biggest obstacle most first-time homebuyers face is not the monthly payment — it is the upfront cash required to close. In a market like the DMV, where median home prices remain elevated, that barrier can feel insurmountable.

What many buyers do not know is that Maryland and Virginia both have robust first-time homebuyer programs that can dramatically reduce — and in some cases eliminate — that upfront cost. Here is what is available in 2026.

Maryland Programs

Maryland Mortgage Program

The Maryland Department of Housing and Community Development runs the Maryland Mortgage Program, the primary gateway to state-sponsored homebuyer assistance. The MMP offers:

• Competitive 30-year fixed-rate loans through a network of approved lenders

• Down Payment Assistance: Up to 5% of the loan amount in DPA, provided as a zero-interest deferred loan forgiven after 10 years if the buyer stays in the home

• Partner Match: Some local jurisdictions and employers will match MMP DPA dollar-for-dollar

Income and purchase price limits apply and vary by county. Prince George's and Montgomery County both have elevated limits that bring many DMV buyers into eligibility.

Montgomery County Home Purchase Assistance Program

Montgomery County operates its own DPA program for buyers purchasing in the county. Eligible buyers can receive low-interest deferred loans of up to $25,000 for down payment and closing costs.

Prince George's County Down Payment Assistance

Through the Prince George's County Affordable Housing Corporation, first-time buyers can access deferred loans for down payment assistance on properties within county limits.

Virginia Programs

Virginia Housing — The Foundation

Virginia Housing (formerly VHDA) is the primary engine of first-time buyer assistance in Virginia. Its programs include:

• Virginia Housing Conventional and FHA loans with below-market interest rates

• Down Payment Assistance Grant: Up to 2.5% of the purchase price as a non-repayable grant — no repayment, no lien

• Mortgage Credit Certificate: A federal tax credit equal to 20% of annual mortgage interest paid, which reduces your effective tax liability every year you own the home

Northern Virginia Local DPA Programs

Arlington, Alexandria, Fairfax, and Loudoun counties all operate local DPA programs that can stack on top of Virginia Housing benefits. Loudoun County's SPARC program and Arlington's Moderate Income Purchase Assistance Program are particularly strong options for buyers in those jurisdictions.

City of Alexandria — Affordable Homeownership

Alexandria's Office of Housing administers multiple homeownership programs including down payment assistance and below-market price homeownership opportunities through its housing development pipeline.

How to Access These Programs

1. Confirm eligibility. Income limits, purchase price caps, and first-time buyer definitions vary. Most programs define first-time buyer as someone who has not owned a primary residence in the past three years.

2. Get pre-approved through an approved lender. Most state programs require you to work with a lender on their approved list.

3. Complete homebuyer education. Nearly every DPA program requires completion of a HUD-approved homebuyer education course, typically available online in 6-8 hours.

4. Work with a buyer's agent who knows the programs. District Realty agents work with first-time buyers across MD and VA regularly — we know which programs apply to your target area and how to structure an offer that uses them effectively.

Ready to start the process? Connect with a District Realty buyer's agent who specializes in first-time homebuyer programs in your county.

A young couple in their late 20s standing in front of a modest, well-maintained suburban home, smiling and holding a Just Closed sign. Bright, natural daylight, diverse representation. Warm and celebratory tone. Professional editorial real estate photography. No text overlays.