Maryland Home Loan Programs for Veterans

The State of Maryland Community Development Administration serves as the state’s Housing Finance Agency and, as such, offers veteran-friendly mortgage loan options to qualifying veterans.

Outside of the VA home loan benefit, the State of Maryland offers a variety of homeowner benefits, but those specifically for veterans provide financial assistance to help veterans get into affordable homes. Maryland veteran-friendly home loan programs include:

• Maryland Mortgage Program (MMP)
• Maryland SmartBuy
• State of Maryland tax credit for adapted housing

Home loans under this program are issued by a network of participating lenders. You will need to shop around for the right participating financial institution for you.

The Maryland Mortgage Program (MMP)

The Maryland Mortgage Program (MMP) offers qualifying veterans a 30-year fixed-rate mortgage for homes purchased in Maryland. Rates and terms are described as competitive, but what sets MMP apart is its range of financial assistance programs that can help make homeownership more affordable.

Full access to MMP benefits is generally limited to first-time homebuyers. For this program, a first-time buyer is someone who has not owned residential property in the past three years. Eligible first-time buyers may purchase a home anywhere in the state.

Borrowers who are not first-time buyers may still qualify if they purchase a home in a designated targeted area.

Income limits and purchase price caps apply. Income limits vary by household size, and applicants with liquid assets exceeding 20% of the purchase price may be ineligible.

Maryland SmartBuy 2.0 Program

Maryland SmartBuy is designed to help homebuyers with student loan debt purchase a home while paying off that debt at closing through the Maryland Mortgage Program.

The original SmartBuy program was limited to certain move-in-ready homes owned by the state. Maryland SmartBuy 2.0 expands eligibility, allowing buyers to purchase any home in Maryland that meets MMP guidelines while still receiving student debt assistance.

To qualify, homebuyers must:

• Have at least $1,000 in existing student loan debt
• Meet all Maryland Mortgage Program eligibility requirements

The program provides up to 15% of the home’s purchase price to pay off outstanding student loans:

• Up to $40,000 for loans reserved before 9/1/2020
• Up to $30,000 for loans reserved on or after 9/1/2020

The full student loan balance must be paid off at closing.

Disabled Veteran-Friendly Maryland State Tax Credit For Adapted Housing

Maryland offers a state tax credit to help offset the cost of accessibility improvements for disabled homeowners. While the program is not limited to veterans, eligible disabled veterans may benefit from modifications that support more independence.

The credit allows homeowners to recover 50% of eligible renovation costs, up to $5,000. The home can be:

• Owned by a family member and used by the veteran
• Owned by the veteran
• Rented by the veteran

Eligible Improvements

Improvements must be on the state’s approved list. Qualifying modifications may include:

• No-step entryways and accessible routes
• Widened doorways (at least 32 inches clear opening)
• Grab bars and reinforced walls
• Handrails and hallway railings
• Roll-in showers or tubs
• Chairlifts and elevators
• Slip-resistant flooring
• Lowered switches, thermostats, and breaker boxes (no more than 48 inches high)
• Raised electrical outlets (at least 15 inches above the floor)
• Visual or sensory-integrated fire, smoke, or carbon monoxide alarms
• Accessible door and plumbing hardware

How to Claim the Credit

Renovations must be completed in the prior tax year to qualify. Applicants must:

• Submit receipts and documentation of expenses
• Complete the Independent Living Tax Credit application
• Mail the application by the stated deadline (generally June 1)

The program has an annual statewide funding cap of $1,000,000. Once funds are exhausted, approvals may be suspended until the following year.

Because tax laws can change, homeowners should confirm current rules and deadlines with the State of Maryland before applying.