Homebuyer Programs in Frederick, MD (2026)
Frederick is the second-largest city in Maryland, located about 50 miles northwest of Washington, D.C. in Frederick County, with roughly 95,000 residents and a median home price around $435,000. Frederick offers a rich combination of local, county, and state homebuyer programs. The Frederick County Homebuyer Assistance Program (HAP) provides up to $12,000 in zero-interest deferred loans, the House Keys 4 Employees (HK4E) program offers up to $17,000 for employees of participating employers, and the City of Frederick Community Partners Incentive Program (CPIP) adds up to $5,000 for purchases within city limits. The United Way Pathway to Homeownership matches $3,000 in savings with $14,000 for a total of $17,000. At the state level, the Maryland Mortgage Program 1st Time Advantage offers up to $6,000 in DPA, and the SmartBuy 3.0 program provides up to $20,000 toward student loan repayment. By stacking multiple programs, eligible Frederick buyers could potentially access $20,000 or more in combined assistance.
Top Homebuyer Programs in Frederick
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Frederick Community Partners Incentive Program (CPIP) | Deferred Loan | Up to $5,000 ($2,500 from Maryland DHCD + $2,500 from the City of Frederick) | Yes | View → |
| Frederick County Homebuyer Assistance Program (HAP) | Deferred Loan | Up to $12,000 for households at or below 50% AMI; up to $10,000 for 51%-80% AMI | Yes | View → |
| Frederick County House Keys 4 Employees (HK4E) | Deferred Loan | Up to $17,000 ($8,500 MMP match + $8,500 county deferred loan) | Yes | View → |
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| Habitat for Humanity of Frederick County Homeownership Program | Zero-Interest Loan | Affordable mortgage with low down payment and low interest rate | No | View → |
| United Way Pathway to Homeownership - Frederick County | Grant | $17,000 total ($3,000 personal savings matched with $14,000) | Yes | View → |
| Maryland HomeAbility | Deferred Loan | Up to 25% of the purchase price or $45,000 for down payment and closing costs | No | View → |
| Maryland Mortgage Program - 1st Time Advantage | Deferred Loan | Up to $6,000 or 3%-5% of the first mortgage amount | Yes | View → |
| Maryland Mortgage Program - Flex Loan | Deferred Loan | Up to $6,000 | No | View → |
| Maryland SmartBuy 3.0 | Forgivable Loan | Up to 15% of the purchase price or $20,000, whichever is less | No | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $5,000 ($2,500 from Maryland DHCD + $2,500 from the City of Frederick)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $12,000 for households at or below 50% AMI; up to $10,000 for 51%-80% AMI
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $17,000 ($8,500 MMP match + $8,500 county deferred loan)
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with low down payment and low interest rate
- First-time only:
- No
- Type:
- Grant
- Amount:
- $17,000 total ($3,000 personal savings matched with $14,000)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to 25% of the purchase price or $45,000 for down payment and closing costs
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $6,000 or 3%-5% of the first mortgage amount
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $6,000
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 15% of the purchase price or $20,000, whichever is less
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. The Frederick County HAP requires income at or below 80% AMI, with higher assistance at 50% AMI or below. You must currently live or work in Frederick County. Maryland Mortgage Program income limits vary by household size.
- Step 2:
Complete homebuyer education. Attend an 8-hour HUD-certified housing counseling course. The Frederick Community Action Agency offers approved courses — call (301) 600-1506 to register.
- Step 3:
Contact the Frederick County Division of Housing. Ask about the Homebuyer Assistance Program (HAP) for up to $12,000 and the House Keys 4 Employees (HK4E) program for up to $17,000 if your employer participates.
- Step 4:
If buying in the City of Frederick, ask about CPIP. Contact Brad Petersen at 301-600-3966 to learn about the additional $5,000 available through the Community Partners Incentive Program for purchases within city limits.
- Step 5:
Get pre-approved for a mortgage. Work with an MMP-approved lender to access state-level down payment assistance alongside county and city programs. Each borrower needs a minimum credit score of 640 for MMP products.
- Step 6:
Submit your applications. You need a ratified sales contract before applying for HAP. Minimum buyer contribution is $500. The Frederick County Division of Housing coordinates with your lender on funding.