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About the Pathway to Purchase in Prince George's County
Pathway to Purchase in Prince George's County is a first-time homebuyer program run by the county Department of Housing and Community Development (DHCD) with federal HOME funds. Buyers can borrow as much as $50,000 toward their down payment and closing costs, structured as a 0% deferred second mortgage that the county forgives in full by year 15. That is more than eight times the $6,000 loan in Maryland's statewide 1st Time Advantage 6000 product.
To qualify for Pathway to Purchase, household income must be at or below 80% of Area Median Income. For FY2027 the county caps income at $93,050 for a one-person household, $106,350 for a two-person household, $119,650 with three people, $132,900 with four and $175,450 with eight. Income counts every household member age 18 and older, even people who are not on the mortgage, and adults with no earnings must show Social Security proof of no reportable income. You cannot have owned any residential property, cooperatives included, in the past three years, and a relative co-borrower must also be a first-time buyer. The program sets no minimum credit score, but you must qualify with a participating lender. Debt-to-income ratios are capped at 35% front-end and 47% back-end with no exceptions. Homes anywhere in the county qualify up to $448,000 for resales and $485,000 for new construction.
No interest accrues and no monthly payment is due while you follow the program terms. Nothing is forgiven in the first five years; the balance then drops 10% a year from year 6 until it reaches zero at year 15. Selling, transferring, a cash-out refinance or moving out triggers repayment, and a default accrues 5.75% interest. By comparison, MMP's 3%, 4% and 5% 1st Time Advantage loans are smaller and are due whenever the first mortgage ends.
How much assistance
Eligibility
- Income limits: 80% of Area Median Income, Prince George's County FY2027: $93,050 (1 person), $106,350 (2), $119,650 (3), $132,900 (4), $143,550 (5), $154,200 (6), $164,800 (7), $175,450 (8). Counts gross income of all household members 18 and older (HUD Part 5).
- Purchase price limit: $448,000
- First-time buyer required: Yes — Must not have owned any residential real estate, including cooperatives, anywhere in the three years before applying. A relative or parent co-borrower must also be a first-time buyer. Must occupy the home as a primary residence for the 15-year term.
- Geographic restrictions: Must purchase a home in Prince George's County, Maryland.
- Homebuyer education required: Yes
How to Apply for Pathway to Purchase in Prince George's County
Step 1: Check the income and price limits
Compare your household income against the FY2027 limits: $93,050 for one person, $119,650 for three, $132,900 for four, up to $175,450 for eight. Count every adult in the home, not only the borrowers. Then set your search ceiling at $448,000 for a resale or $485,000 for new construction. The guidelines state there are no exceptions to the price limit, so homes listed above it are off the table.
Step 2: Complete an 8-hour homebuyer education class
Pathway to Purchase requires a certificate from a minimum 8-hour course taught by a HUD-certified housing counseling agency, and online classes are accepted. The county posts its list of approved agencies on the P2P Documents page at princegeorgescountymd.gov. Classes typically cost $25 to $125. The certificate must be in hand before your lender submits the application, so finish it before you sign a contract.
Step 3: Get pre-approved by a participating lender
The county does not take applications from buyers directly. Get pre-approved for a fixed-rate FHA or conventional first mortgage through a lender on the county's Participating Lenders list (revised August 2026) or any Maryland Mortgage Program lender. Adjustable-rate and balloon loans are not allowed. Lender fees are capped at 3% of the loan, and a pre-approval does not guarantee Pathway to Purchase approval.
Step 4: Ratify a contract and order the inspection
Place a contract on a single-family home, townhome or condo in Prince George's County, and the county suggests a settlement date at least 60 days out. Right after ratification, request the Housing Quality Standards inspection from American Property Consultants at hudpass.com. The buyer pays a $139 fee, a failed-item reinspection costs $65, and the home must pass before your file is submitted.
Step 5: Lender submits the county application
Once your first mortgage has conditional approval, the lender sends the complete Pathway to Purchase package to DHCD. The county needs 21 business days to process a file, not counting federal holidays, and rejects files with less time left on the contract. Funds are awarded first come, first ready, so a clean package matters. Questions go to PathwaytoPurchase@co.pg.md.us or 301-883-5456.
Step 6: Close with an approved title company
After your lender issues a clear to close, DHCD needs another 7 business days to prepare its loan for settlement. Closing must be handled by a P2P or MMP approved title company, and you sign a Deed of Trust and Declaration of Covenants recorded in county land records. You cannot receive cash back at settlement, and DHCD verifies your primary residency every year during the 15-year term.
Real Cost Example
On a $440,000 resale townhome in Bowie, just under the $448,000 resale cap, an FHA first mortgage with 3.5% down requires a $15,400 down payment. A household of four earning up to $132,900 meets the FY2027 income limit. Pathway to Purchase can lend up to $50,000 at 0% interest, which is enough to cover the full down payment plus closing costs on this purchase, with nothing owed monthly.
Estimated closing costs in the Bowie area run $10,000 to $15,000, bringing total cash needed to $25,400 to $30,400 before assistance. The county encourages sellers to contribute at least 3% toward closing costs, which is $13,200 on this home. Any excess cannot come back to you, because the program bars cash back at settlement and applies leftovers to principal or the seller credit.
A buyer who adds the Maryland Mortgage Program 1st Time Advantage 6000 with the Partner Match receives $6,000 plus a $2,500 state match, or $8,500 more. Combined with a $50,000 Pathway to Purchase award, that is up to $58,500 in help on a $440,000 Bowie home. The MMP portions are 0% deferred loans due when the first mortgage is paid off.
Combining With Other Programs
Pathway to Purchase is built to pair with the Maryland Mortgage Program. Under the first option, an MMP lender uses the 1st Time Advantage Direct first mortgage, which carries MMP's lowest rate, and the county supplies up to $50,000. Under the second, the lender uses the 1st Time Advantage 6000, which adds a $6,000 deferred loan, and the county signs a Partner Match verification that unlocks a $2,500 state match. That route totals $8,500 in MMP help on top of the county loan.
The county program only works with fixed-rate FHA, conventional or MMP first mortgages, so VA and USDA loans are not listed as accepted products. Adjustable-rate and balloon mortgages are excluded. MMP and the county review applications separately, and MMP warns that it does not control county funding. Call Pathway to Purchase at 301-883-5456, or MMP at 301-429-7852, before you lock a rate.
Seller credits are the other main lever: the county guidelines encourage sellers to pay at least 3% of the price toward closing costs. Lender fees are capped at 3%, and title company charges are capped at $1,100 plus title insurance. These caps keep more of the $50,000 working toward your down payment.
Pros and Cons
Pathway to Purchase offers up to $50,000 at 0% interest with no monthly payments, versus $6,000 from the MMP 1st Time Advantage 6000. It covers down payment and closing costs on resales, new construction, foreclosures and short sales anywhere in Prince George's County. There is no minimum cash contribution from the buyer and no program credit score floor. It also stacks with the MMP 1st Time Advantage 6000 and Partner Match for another $8,500. The program caps lender fees at 3% and title fees at $1,100, which protects buyers from padded closing costs.
The biggest limitation is the 15-year term with no forgiveness during the first five years, so selling in year 4 means repaying the full amount. The price caps of $448,000 for resales and $485,000 for new construction sit below the roughly $500,000 Bowie median, which narrows the search. Funding is first come, first ready; the county reports 33 buyers assisted in FY2026. Processing adds 21 business days plus a $139 inspection. Buyers above 80% AMI should look at MMP Flex 6000 or Maryland SmartBuy instead.
Frequently Asked Questions
Is Pathway to Purchase a grant or a loan?+−
What are the Pathway to Purchase income limits?+−
Can I use Pathway to Purchase with the Maryland Mortgage Program?+−
Do I have to be a first-time homebuyer for Pathway to Purchase?+−
How long does Pathway to Purchase take to close?+−
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Program details last verified: October 16, 2026