See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026

Homebuyer Programs in Frederick, MD (2026)

Population: 95,000 | Median home price: $435,000 | Est. closing costs: $8,500 - $13,000

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.

City 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 →

City of Frederick Community Partners Incentive Program (CPIP)

Type:: Deferred Loan
Amount:: Up to $5,000 ($2,500 from Maryland DHCD + $2,500 from the City of Frederick)
First-time only:: Yes

County Programs in Frederick County

Program Name	Type	Amount	First-Time Only	Details
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 →

Frederick County Homebuyer Assistance Program (HAP)

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

Frederick County House Keys 4 Employees (HK4E)

Type:: Deferred Loan
Amount:: Up to $17,000 ($8,500 MMP match + $8,500 county deferred loan)
First-time only:: Yes

State Programs in Maryland

Program Name	Type	Amount	First-Time Only	Details
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+	Grant	Up to $15,000 in home purchase assistance for down payment and closing costs	No	View →
Maryland HomeAbility	Deferred Loan	0% deferred second loan of up to 25% of the purchase price, capped at $45,000, for down payment and closing costs; first and second loans combined may not exceed 105% of the purchase price	Yes	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 →

FHLBA Community Partners Product

Type:: Forgivable Loan
Amount:: Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:: No

FHLBA First Time Homebuyer Product

Type:: Forgivable Loan
Amount:: Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:: Yes

FHLBA Workforce Housing Plus+

Type:: Grant
Amount:: Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:: No

Maryland HomeAbility

Type:: Deferred Loan
Amount:: 0% deferred second loan of up to 25% of the purchase price, capped at $45,000, for down payment and closing costs; first and second loans combined may not exceed 105% of the purchase price
First-time only:: Yes

Maryland Mortgage Program - 1st Time Advantage

Type:: Deferred Loan
Amount:: Up to $6,000 or 3%-5% of the first mortgage amount
First-time only:: Yes

Maryland Mortgage Program - Flex Loan

Type:: Deferred Loan
Amount:: Up to $6,000
First-time only:: No

Maryland SmartBuy 3.0

Type:: Forgivable Loan
Amount:: Up to 15% of the purchase price or $20,000, whichever is less
First-time only:: No

Federal Programs

Program Name	Type	Amount	First-Time Only	Details
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 →
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 →

FHA Loans

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

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

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

HomeReady Mortgage (Fannie Mae)

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

HUD $100 Down Program

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

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
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 →

Habitat for Humanity of Frederick County Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable mortgage with low down payment and low interest rate
First-time only:: No

United Way Pathway to Homeownership - Frederick County

Type:: Grant
Amount:: $17,000 total ($3,000 personal savings matched with $14,000)
First-time only:: Yes

Free eligibility check

19 programs available in Frederick. See which ones you qualify for.

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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.

Frequently Asked Questions

How much down payment assistance can I get in Frederick?+

Frederick buyers can access multiple programs. The Frederick County HAP provides up to $12,000 as a zero-interest deferred loan. The House Keys 4 Employees program offers up to $17,000 for participating employer workers. The City of Frederick 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 $17,000 total. State programs add up to $6,000 through MMP 1st Time Advantage and up to $20,000 through SmartBuy 3.0 for student loan payoff.

Do I have to be a first-time homebuyer to get assistance in Frederick?+

Most Frederick programs require first-time buyer status, including the HAP, HK4E, CPIP, and United Way Pathway programs. However, the state-level Maryland Mortgage Program Flex Loan is available to repeat buyers with up to $6,000 in DPA, and SmartBuy 3.0 is also open to repeat buyers.

What is the maximum home price I can purchase with these programs?+

The Frederick County HAP and CPIP do not list a specific purchase price cap, but your total housing costs must be affordable relative to your income. The Maryland Mortgage Program has county-specific purchase price limits for Frederick County — contact an MMP-approved lender for current limits.

What homebuyer education is required?+

The Frederick County HAP requires an 8-hour HUD-certified housing counseling course. The Frederick Community Action Agency at (301) 600-1506 offers approved courses. This certificate also satisfies Maryland Mortgage Program homebuyer education requirements.

What is the United Way Pathway to Homeownership program?+

This is a matched savings program through the United Way of Frederick County. You open a Prosperity Account with $200, save $3,000, and receive a $14,000 match for a total of $17,000 toward your home purchase. You must participate in budget coaching, attend a Credit Cafe workshop, and complete a first-time homebuyer class. Contact 301-663-4231 or jkwamenapoh@uwfrederick.org to learn more.

What is the House Keys 4 Employees program?+

HK4E helps employees of participating Frederick County employers purchase homes. When you use an MMP 1st Time Advantage or Flex 6000 loan, the MMP provides $8,500 and Frederick County matches with an additional $8,500, totaling $17,000 in zero-interest deferred down payment assistance. Both Frederick County Government and the City of Frederick are participating employers. Check with your HR department to see if your employer participates.