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About the Maryland HomeAbility
Maryland HomeAbility is a Maryland Mortgage Program (MMP) loan for homebuyers with disabilities and for caregivers of a disabled family member. The Maryland Department of Housing and Community Development runs it through its Community Development Administration (CDA). It pairs a 30-year fixed-rate conventional first mortgage of up to 95% of the price with a 0% deferred second loan of up to 25% of the price, capped at $45,000.
To qualify for Maryland HomeAbility, one borrower must have a documented disability, or be the guardian, housemate and principal caregiver of an immediate family member with a disability of any age. Proof can be the CDA Certificate of Disability signed by a health, mental health or disability professional, an SSI, SSDI, VA or employer disability award letter, or an SSA decision on a benefits application. Qualifying income for all borrowers combined cannot exceed 80% of area median income. The 2026 chart, effective June 24, 2026, runs from $76,000 in counties such as Allegany and Carroll to $131,280 in Montgomery and Prince George's. Household income must also fall under standard MMP limits. Buyers must not have owned a home in three years unless they buy in an MMP Targeted Area or are veterans using the exemption for the first time. MMP sets a 640 minimum credit score.
The second loan charges no interest and has no monthly payment, but it is not forgiven. The full balance is due when you sell, refinance or transfer the home, or pay off the first mortgage. Lenders charge zero points on HomeAbility. By comparison, MMP's 1st Time Advantage 6000 and Flex 6000 come with a $6,000 deferred loan, and the 3%, 4% and 5% loans give 3% to 5% of the first mortgage.
How much assistance
Eligibility
- Income limits: Qualifying income of all borrowers combined at or below 80% AMI (2026 chart effective 6/24/2026): $76,000 to $131,280 by county, e.g. $107,200 in Baltimore City and Baltimore County, $131,280 in Montgomery and Prince George's. Household income must also meet standard 2026 MMP limits ($137,100 to $232,540 by county and household size).
- First-time buyer required: Yes — No ownership of a principal residence in the past 3 years. Waived for purchases in MMP Targeted Areas and for honorably discharged veterans using the first-time homebuyer exemption for the first time.
- Credit score minimum: 640
- Geographic restrictions: Must purchase a home in Maryland as primary residence.
- Homebuyer education required: Yes
How to Apply for Maryland HomeAbility
Step 1: Gather proof of the disability
CDA must accept one of three documents. The first is the CDA Certificate of Disability, completed by a health, mental health or disability professional (linked from mmp.maryland.gov/home-loans/homeability-loan). The second is an SSI, SSDI, VA or former-employer award letter, policy or benefits statement. The third is proof you applied for disability benefits plus the SSA decision. Caregivers document the family member's disability instead.
Step 2: Check income and first-time buyer status
Compare the qualifying income of every borrower on the loan to the 2026 80% AMI chart, which ranges from $76,000 to $131,280 by county. Household income must also meet standard MMP limits of $137,100 to $232,540. If you owned a home in the past three years, use the MMP mapper at portal.dhcd.state.md.us/GIS/MMP/index.html to confirm a Targeted Area address.
Step 3: Complete a homebuyer education class
Every MMP purchase loan, including HomeAbility, requires homebuyer education before closing. Any class approved by HUD, NeighborWorks (NIS), Fannie Mae or Freddie Mac counts, including online courses. Keep the completion certificate for your lender. The class also covers budgeting for the deferred second loan, which comes due in full when you sell or refinance, so plan for that payoff from the start.
Step 4: Find an MMP lender with a reservation
Only MMP-approved lenders can originate HomeAbility. Request a loan officer referral at mmp.maryland.gov/lenders-and-partner-listings/get-referred-loan-officer or call MMP at 301-429-7852 (Maryland Relay 711). Funding is tight: the October 16, 2026 rate sheet showed 0.47 of a reservation left, and lenders must email singlefamilyhousing.dhcd@maryland.gov to request new ones. Ask lenders directly whether they can still reserve funds.
Step 5: Get pre-approved and pick an eligible home
Your lender underwrites to MMP, U.S. Bank, Fannie Mae and Freddie Mac rules, with a 640 minimum credit score. Eligible homes include detached and semi-detached houses, townhouses, condos and modular homes; manufactured homes need U.S. Bank approval. New construction must sit in a Priority Funding Area, and lots are capped at four acres, with exceptions up to ten acres.
Step 6: Ratify a contract, reserve and close
HomeAbility can only be reserved after you have a fully ratified contract of sale, plus third-party approval on a short sale. The lender then reserves funds and submits the file to CDA. MMP reviews take up to three business days at each stage, and each set of conditions adds three more business days. Liquid assets above 20% of the price trigger an asset test worksheet.
Real Cost Example
On a $217,000 home in Baltimore, the city's median price, a Maryland HomeAbility first mortgage at 95% is $206,150, leaving a $10,850 down payment. The 105% combined loan limit caps total liens at $227,850, so the 0% second loan can reach $21,700 on this home, well under the $45,000 cap. That second covers the full $10,850 down payment with $10,850 of room left over.
Estimated closing costs in Baltimore run $4,500 to $6,500, so the remaining second-loan room can cover them in full. A buyer could close with little cash beyond earnest money. All of Baltimore City is an MMP Targeted Area, so the first-time buyer rule is waived there, and the 2026 borrower income cap for the city is $107,200.
A first-time buyer whose MMP lender is also an FHLBank Atlanta member could add the First-time Homebuyer Product, up to $17,500. Applied to the $17,350 in down payment and top-end closing costs, it would shrink the HomeAbility second to almost nothing. MMP may reduce its second loan when outside funds are used, so less is owed back at sale.
Combining With Other Programs
Maryland HomeAbility can be paired with outside down payment help recorded as a separate lien. The HomeAbility fact sheet allows funds from local jurisdictions, municipalities, the Federal Home Loan Bank and nonprofits. FHLBank Atlanta's 2026 First-time Homebuyer Product pays up to $17,500, and its Community Partners Product pays up to $20,000 for first responders, educators, health care workers and veterans. Both serve households under 80% AMI, matching HomeAbility's income cap, and run through member lenders.
HomeAbility cannot be combined with MMP Partner Match loans. It is its own MMP first mortgage, so you choose it instead of 1st Time Advantage, Flex or SmartBuy. FHLBank Atlanta's Workforce Housing Plus+ ($15,000) targets incomes from 80.01% to 120% AMI, above HomeAbility's limit. Outside funds can shrink the HomeAbility second so total liens stay at or below 105%. Call MMP at 301-429-7852 or 800-756-0119 (Maryland only).
The HomeAbility second can pay down payment, closing costs or principal curtailment, so unused room can lower the first mortgage balance. Seller-paid closing costs cut cash needed further, within Fannie Mae and Freddie Mac limits your lender confirms. The MMP fact sheet makes HomeAbility a zero-point product, so no discount points are added to your closing costs.
Pros and Cons
Maryland HomeAbility offers one of the largest down payment loans in the Maryland Mortgage Program, up to 25% of the price or $45,000, against $6,000 for 1st Time Advantage 6000 and Flex 6000. The second loan charges 0% interest with no monthly payment for the life of the first mortgage. Combined financing reaches 105% of the price, so down payment and closing costs can both be covered. Lenders charge zero points, and caregivers of a disabled family member qualify, not just disabled borrowers. In Targeted Areas such as Baltimore City, repeat buyers can use it too.
The biggest limitation is funding. MMP reopened HomeAbility on July 1, 2026 with replenished money, but by October 16, 2026 the rate sheet showed only 0.47 of a reservation left and the program was closed in Lender Online. The 80% AMI income cap, from $76,000 to $131,280 by county, is far below standard MMP limits. The second loan is never forgiven and must be repaid at sale or refinance. Buyers who miss the cap or the funding window should compare MMP's 1st Time Advantage 6000 or FHLBank Atlanta's $17,500 First-time Homebuyer Product.
Frequently Asked Questions
Who counts as disabled for the Maryland HomeAbility loan?+−
Do I have to be a first-time homebuyer to get HomeAbility?+−
Is the HomeAbility down payment loan forgivable?+−
How much down payment help can HomeAbility give me?+−
Is Maryland HomeAbility still available in 2026?+−
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Program details last verified: October 17, 2026