​​​Maryland SmartBuy Loan

Maryland SmartBuy (3.0) helps you buy a home and pay off your student debt. The program is part of the Maryland Mortgage Program (MMP) and follows standard MMP guidelines.

Who Can Apply

You may be eligible if you:

• Have at least $1,000 in student loan debt
• Are a first-time homebuyer or a repeat homebuyer purchasing in a targeted area

Benefits

• Buy a home and pay off your student debt in full at closing
• Get up to 15% of the home purchase price (maximum $20,000) to pay qualifying student debt (any amount over this limit is paid out of pocket)
• The student debt payoff portion is a 0% interest loan that is fully forgiven after 5 years if you stay in the home
• No monthly payment on the student debt assistance
• May be combined with MMP down payment assistance (if eligible)

Eligibility Requirements

To use Maryland SmartBuy loan, you must:

• Have a minimum student debt balance of $1,000
• Pay off the full remaining student debt balance for at least one borrower at closing (if the debt exceeds the $20,000 limit, you must pay the difference out-of-pocket)
• Meet the minimum credit score of 720
• Be a first-time homebuyer (unless buying in a Targeted Area)
• Complete an approved Homebuyer Education class
• Meet standard MMP eligibility requirements​, including income limits, credit score and purchase price limits
• Meet all requirements from lenders, mortgage insurers, and any partner organizations providing funding
• Not own any other real property at time of closing
• Occupy the home as your primary residence
• Use an approved Maryland SmartBuy lender

Down payment assistance (optional)

You may be able to combine SmartBuy with one standard MMP down payment assistance option:

• $6,000 Assistance: A deferred, 0% interest loan you can use for your down payment and closing costs
• 6% Assistance: A deferred, 0% interest loan equal to 6% of your first mortgage is available only if your household income is at or below 50% of the Area Median Income (AMI)​

Approved SmartBuy Mortgage Lenders

Financing for the Maryland SmartBuy loan ​is available only through SmartBuy-approved lenders.