See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026
Homebuyer Programs in Hagerstown, MD (2026)
Hagerstown is the county seat of Washington County in western Maryland, a city of about 42,000 residents with a median home price near $250,000, making it one of the most affordable housing markets in the state. Hagerstown buyers benefit from multiple layers of local assistance. The Hagerstown Homeownership Initiative (HHI) provides up to $7,500 as a forgivable loan that converts to a grant after five years of owner-occupancy. The Hagerstown Home Store Down Payment Assistance Program offers up to $6,000 through the Community Partners Incentive Program, and Habitat for Humanity of Washington County builds affordable homes for qualifying families. Combined with Maryland Mortgage Program state assistance of up to $6,000, eligible Hagerstown buyers can access nearly $20,000 in total down payment and closing cost help — a significant boost in a market where the typical home is well within reach.
City Programs in Hagerstown
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Hagerstown Homeownership Initiative (HHI) | Forgivable Loan | Up to $7,500 | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $7,500
- First-time only:
- No
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 → |
- 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:
- Grant
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- 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
- 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
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 → |
- 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:
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity of Washington County Homeownership Program | Zero-Interest Loan | Affordable mortgage with below-market terms | No | View → |
| Hagerstown Home Store Down Payment Assistance Program | Grant | Up to $6,000 | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with below-market terms
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $6,000
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. The Hagerstown Homeownership Initiative requires household income below program limits, and the property must be within Hagerstown city limits. The Home Store DPA program requires first-time buyer status and completion of homebuyer counseling before placing a contract.
Step 2: Complete homebuyer education and counseling. The Hagerstown Home Store offers free homebuyer workshops and one-on-one counseling as a HUD-certified housing counseling agency. This is required for the Home Store DPA program and recommended for all programs. Contact the Home Store at 301-797-0900 to enroll.
Step 3: Apply for the Hagerstown Homeownership Initiative (HHI). Contact the City of Hagerstown Department of Community and Economic Development at 301-739-8577 ext. 111 or email dhcd@hagerstownmd.org. Applications are reviewed on a first-come, first-served basis. The office is located at 14 N. Potomac St., Suite 200A, Hagerstown, MD 21740.
Step 4: Get pre-approved through a participating lender. The Maryland Mortgage Program requires an approved lender who can package state assistance with local programs. Ask about combining the MMP first mortgage with HHI and Home Store DPA for maximum benefit.
Step 5: Find a home within program limits. HHI requires the purchase price to be no more than 125% of the average home sale price in the area. Work with your agent and lender to identify qualifying properties within Hagerstown city limits.
Step 6: Submit your applications and close. Once under contract, your lender and the Home Store counselor will help you apply for all available assistance programs. Processing times vary by program.
Frequently Asked Questions
How much down payment assistance can I get in Hagerstown?+−
Do I have to be a first-time homebuyer to qualify?+−
How does the Hagerstown Homeownership Initiative forgiveness work?+−
What homebuyer education is available in Hagerstown?+−
What types of homes can I buy with these programs?+−
Can I combine multiple programs together?+−
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