Maryland HomeCredit Program - For Lenders

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Mortgage Credit Certificates: The Basics

Eligible Maryland homebuyers can now receive a mortgage credit certificate through the Maryland HomeCredit Program, offered by Maryland’s Department of Housing and Community Development.



In Maryland, a mortgage credit certificate, or “HomeCredit” allows a homeowner to claim an annual federal tax credit equivalent to 25% of their mortgage interest payments in a given tax year.

A Maryland HomeCredit can potentially save a homebuyer tens of thousands of dollars over the life of a loan, and makes owning a home more affordable. Together with a home loan through the Department’s Maryland Mortgage Program, which offers Down Payment Assistance and the certainty of a 30-year fixed interest rate, the State of Maryland is making the dream of sustainable homeownership a reality for more Marylanders.

Who Can Get a Maryland HomeCredit?

To get a HomeCredit, a borrower must be purchasing a home in Maryland and meet borrowing criteria that include:

  • The borrower must meet the same income limits and home purchase price limits as the Maryland Mortgage Program;
  • The borrower cannot have owned a home during the past three (3) years, UNLESS they are purchasing in a Targeted Area;
  • The home  purchased must be the borrower's primary residence.

NOTE - the Maryland HomeCredit Program is not available for refinances or existing home loans, Homefront, REO purchases or other special initiatives.

Calculating the Value of an Maryland HomeCredit

The size of the tax credit received by a homeowner with a HomeCredit is 25% of that year's mortgage interest payments, up to a maximum credit of $2,000 in any single year. 

Note that the actual net savings due to the HomeCredit are likely to be less than the face value of the tax credit, since the value of the of interest payments associated with the tax credit (25% of total interest payments) cannot also be used as a standard mortgage interest deduction. 

The following example shows a typical calculation:

Our downloadable calculator can help you estimate how a Maryland HomeCredit can provide you with a borrower with savings over the life of a loan. 

Maryland HomeCredit Fees

Borrowers must pay certain fees to receive a Maryland HomeCredit.  Fees for processing Maryland HomeCredit applications may be charged in accordance with HomeCredit Directives, located here.

Refer to the Lender's Compliance Manual for more details.

Become a Maryland HomeCredit Lender

Lenders that wish to offer the Maryland HomeCredit Program to borrowers must be approved by the Department's Community Development Administration - Maryland's housing finance agency.