First-Time Home Buyer Programs in DC, Maryland, and Virginia for 2026

Updated April 16, 2026

First-Time Home Buyer Programs in DC, Maryland, and Virginia for 2026

Who Qualifies as a First-Time Homebuyer?

The definition of first-time homebuyer is more flexible than most people realize. For most federal and state programs, you qualify if you have not owned a home in the past three years. This means previous homeowners who sold or lost a home more than three years ago can access first-time buyer benefits again. Some programs also extend first-time buyer status to single parents who only owned jointly with a former spouse, and to displaced homemakers. Veterans and buyers purchasing in targeted census tracts may be exempt from the first-time buyer requirement altogether in certain programs.

DC First-Time Buyer Programs

The District of Columbia offers some of the most generous first-time buyer programs in the country. The Home Purchase Assistance Program (HPAP) provides up to $202,000 in interest-free, deferred financing based on household income, with the lowest-income buyers receiving the most assistance. The DC Open Doors program offers 3% to 3.5% of the purchase price as a second mortgage for down payment and closing costs, available to buyers earning up to $199,000. DC's Inclusionary Zoning program requires developers to set aside affordable units in new buildings - these units can be purchased at well below market rate. First-time buyers in DC also receive a reduced recordation tax rate on properties under $500,000.

Virginia First-Time Buyer Programs

Virginia Housing (formerly VHDA) offers a competitive fixed-rate loan program with rates often below the market average for first-time buyers. Their down payment assistance grant provides up to 2% to 2.5% of the purchase price with no repayment required, and it can be combined with their fixed-rate first mortgage. Virginia also offers a Mortgage Credit Certificate (MCC) that provides a federal tax credit equal to 20% of your annual mortgage interest, up to $2,000 per year for the life of the loan. Income limits for Virginia Housing programs vary by region - in Northern Virginia, they can be significantly higher to account for the cost of living. Fairfax County and Arlington also have local programs offering additional assistance for buyers at or below area median income.

Maryland First-Time Buyer Programs

The Maryland Mortgage Program (MMP) offers competitive rates and several types of down payment assistance to first-time buyers. The 1st Time Advantage loan provides a fixed-rate mortgage with up to $6,000 in assistance. The Partner Match program matches grants or loans from employers, nonprofits, or community organizations up to $2,500. Maryland SmartBuy 3.0 is unique nationally - it provides up to 15% of the home price (capped at $40,000) to pay off the buyer's existing student loan debt as part of the home purchase. Montgomery County's MPDUs (Moderately Priced Dwelling Units) program offers significantly discounted homes to income-qualified buyers, with some units priced at 65% to 70% of market value.

Federal Programs Available Everywhere

In addition to local programs, first-time buyers throughout the DMV have access to federal programs. FHA loans require just 3.5% down with a 580+ credit score and are the go-to choice for many first-time buyers. Fannie Mae's HomeReady and Freddie Mac's Home Possible programs offer 3% down conventional loans with reduced PMI rates for income-qualified buyers. The Good Neighbor Next Door program (for teachers, firefighters, EMTs, and law enforcement) offers 50% off homes in HUD-designated revitalization areas. IRA first-time homebuyer withdrawals allow up to $10,000 penalty-free from traditional IRAs, and Roth IRA contributions (not earnings) can be withdrawn at any time without penalty.

How to Stack Multiple Programs

Many first-time buyer programs can be combined for maximum benefit. For example, a Virginia buyer could use a Virginia Housing first mortgage with a 2.5% down payment grant, a Mortgage Credit Certificate for annual tax savings, and an FHA loan for favorable credit terms. In DC, you could combine HPAP assistance with DC Open Doors and a below-market Inclusionary Zoning unit. Work with a lender who is approved to participate in these programs, as not all lenders are. A housing counselor certified by HUD can help you identify every program you qualify for and guide you through the application process, often at no cost to you.

Taking advantage of a first-time buyer program? Use Rate Direct to compare rates from lenders who participate in DC, Maryland, and Virginia assistance programs.

Today's mortgage rates

Conventional

5.625% (5.754% APR)

FHA

5.250% (5.370% APR)

5.125% (5.239% APR)

Conventional: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 700 FICO. 30-year fixed, primary residence. Your rate may vary.

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