If you are a Maryland teacher, police officer, firefighter, EMT or 9-1-1 specialist shopping for your first home, a loan officer may show you two state loans side by side: the new First Homes for First Responders and Teachers loan and the long-running MMP 1st Time Advantage 5%. They look almost identical on paper. Both come from the Maryland Mortgage Program (MMP), both are 30-year fixed-rate loans, and both include a 5% down payment assistance loan. The difference is in who can use them and what you pay each month.
The short answer
If you work full time in an eligible role, First Homes is the better deal in almost every case. It is the same structure as the 1st Time Advantage 5%, with a first mortgage rate that is 0.50 percentage points lower. The state built it that way on purpose: the fact sheet describes First Homes as a first mortgage at "half a percent (50 basis points) lower interest rate" than the 1st Time Advantage 5% loan.
If you do not hold an eligible job, or you are not a first-time buyer, the 1st Time Advantage 5% (or another MMP product) is the one to look at instead.
What the two loans share
- 5% assistance. Both include a 0% interest, 30-year deferred second loan equal to exactly 5% of the first mortgage. Neither allows a higher or lower percentage.
- No monthly payment on the assistance. You repay it when you sell, refinance, transfer the home, or when the first mortgage otherwise ends.
- Same limits. Both use the MMP household income limits and purchase price limits for your county.
- Same basic underwriting. A 640 minimum credit score, homebuyer education before closing, and the home must be your primary residence.
- No Partner Match. Neither can be combined with MMP's Partner Match assistance, though both allow outside help from employers, builders or nonprofits that meets program rules.
Where they differ
| Feature | First Homes | 1st Time Advantage 5% |
|---|---|---|
| Who can apply | Eligible teachers, school counselors and first responders | Any buyer who meets MMP rules |
| Rate (government loans, Oct. 2, 2026) | 7.125% | 7.625% |
| Rate (conventional, Oct. 2, 2026) | 7.500% | 8.000% |
| First-time buyer exceptions | Fact sheet says first-time buyers only | Veterans and Targeted Area purchases can qualify |
| Employment proof | Written verification of employment required | Standard income documents |
| Funding | $50 million set aside | Ongoing MMP product |
Rates change every business day, so treat the figures above as a snapshot from the MMP rate sheet, not a quote.
What 0.50% is worth in real money
On a $300,000 first mortgage, the difference between 7.125% and 7.625% is about $102 a month in principal and interest. Over a full 30-year term that adds up to roughly $36,800. Most people refinance or sell before 30 years, but even five years at the lower rate saves around $6,100.
The lower rate also helps you qualify. Lenders cap how much of your income can go to debt, so a smaller monthly payment means a slightly higher purchase price fits inside the same budget. In our affordability examples, the rate cut adds roughly $8,000 to $23,000 of buying power depending on income.
Who should still use the 1st Time Advantage 5%
- Buyers outside the eligible roles. Nurses, aides, substitute teachers, school administrators and correctional officers are not on the First Homes list, which names classroom teachers, school counselors, police officers, firefighters (including volunteers with 12 months of documented service), EMTs, paramedics, rescue squad members, sworn State Fire Marshal staff and 9-1-1 specialists.
- Part-time workers. First Homes requires full-time employment in the eligible role, for at least one borrower.
- Veterans or repeat buyers in Targeted Areas. The 1st Time Advantage 5% fact sheet lists exceptions for veterans using their one-time exemption and for purchases in Targeted Areas. The First Homes fact sheet says the product is only for first-time buyers, so ask your loan officer how the exceptions apply before you count on them.
Can a couple use First Homes if only one of them qualifies?
Yes. The fact sheet requires that "at least one borrower" be actively employed in Maryland as an eligible first responder or teacher. A firefighter married to an accountant can apply together, as long as the household meets the income limit, which counts every adult living in the home.
Funding is the one catch
The 1st Time Advantage 5% is a standing product. First Homes has a defined pool: the state committed $50 million in first-mortgage funding when applications opened on September 4, 2026. Loans are reserved one at a time once a buyer has a ratified purchase contract, so there is no way to hold a spot before you are under contract. If you qualify, the practical move is to get pre-approved early so you can reserve quickly once you find a home.
A quick example
Take a Prince George's County police officer buying a $350,000 townhouse with an FHA loan. Both loans put the same 5% assistance toward the purchase, about $17,200 on a loan of roughly $343,700, which covers the 3.5% down payment and part of closing costs. The only difference at closing is the rate. Under First Homes, the officer's principal and interest payment comes in about $117 a month lower than under the 1st Time Advantage 5%, for the life of the loan.
How to decide
- Confirm your job is on the eligible list and that you work full time, or have a signed, non-contingent offer from a Maryland employer.
- Check your county's income and price limits.
- Ask an MMP-approved loan officer to price both loans for the same home. If you qualify for First Homes, the payment should come in lower.
The quickest way to see where you stand is our two-minute eligibility check. It covers your job, county and household, and a loan officer who offers First Homes will follow up with real numbers.