Maryland opened applications for the First Homes for First Responders and Teachers loan on September 4, 2026, with $50 million set aside for first mortgages. You cannot apply on a state website, and there is no waiting list. The loan is offered through state-approved mortgage lenders, and funds are committed one loan at a time once a buyer is under contract. Here is how the process works, in order.
Step 1: Confirm you qualify
At least one borrower must work full time in Maryland as one of the following, or hold a signed, non-contingent job offer from a Maryland employer for one of these roles:
- A state-certified classroom teacher or school counselor, pre-K through 12, at an accredited or state-recognized public, private or vocational school
- A police officer, firefighter, certified EMT or paramedic with a public safety agency, fire department or ambulance service
- A volunteer firefighter with at least 12 months of documented volunteer status
- A rescue squad member, sworn member of the Office of the State Fire Marshal, or 9-1-1 specialist
You also need to be a first-time buyer (no ownership of residential property in the past three years), meet your county's household income and purchase price limits, and have a credit score of at least 640. Our eligibility check covers these in about two minutes.
Step 2: Find an MMP-approved lender
Only lenders approved by the Maryland Mortgage Program can offer First Homes. MMP publishes a lender directory and can refer you to a loan officer. Ask any lender you talk to whether they have closed First Homes loans and how quickly they turn around MMP files.
Step 3: Get pre-approved
The state strongly recommends pre-approval before you make an offer, and it is required to use an MMP loan. Your loan officer will pull your credit and review:
- Pay stubs, W-2s and tax returns
- Bank and savings statements
- Monthly debts
First Homes adds one more document: a standard written Verification of Employment (VOE) with detailed income, or an income and employment report from an approved vendor. If the VOE does not make your role clear, be ready with a firefighter or EMT certification card, an MSDE teaching license, or a letter from your municipality confirming volunteer service.
Step 4: Take homebuyer education
Every borrower must complete an approved homebuyer education class before closing, with a certificate dated within 12 months of settlement. Online classes are accepted. Our homebuyer education guide lists the approved options. Doing this now, before you are under contract, keeps it from holding up closing later.
Step 5: Shop and make an offer
Work with a real estate agent who knows MMP loans, and stay inside your county's purchase price limit. Check each address in the MMP Mapper to see whether it is in a Targeted Area, which raises the limits. If the home is new construction, less than a year old, it must also be in a Priority Funding Area.
Eligible homes include single-family houses, townhomes, condos and single-unit homes with an accessory dwelling unit. The home must be your primary residence.
Step 6: Reserve the loan and lock the rate
Once your offer is accepted and the contract is fully ratified, your lender can reserve your First Homes loan in the state's system. The reservation locks your interest rate. This is the moment that matters for funding: money is committed when loans are reserved, so a pre-approved buyer can move as soon as a contract is signed.
Step 7: Appraisal, underwriting and state review
Your lender orders an appraisal, and you will usually schedule a home inspection. Underwriting verifies your income, employment, assets and credit. When the file is complete, the lender submits it to the Maryland Mortgage Program for compliance review. Once the state approves it, closing can be scheduled.
Step 8: Close
At settlement you sign the first mortgage and the 5% assistance loan documents, pay any remaining closing costs, and get your keys. The lender advances the 5% assistance at closing, so it is applied directly to your down payment and closing costs. There is no monthly payment on the assistance loan as long as you live in the home and keep the first mortgage.
Your document checklist
Gathering these early makes pre-approval and underwriting faster:
- Government-issued photo ID and Social Security number for each borrower (U.S. citizenship is not required)
- Your two most recent pay stubs, plus W-2s and tax returns as your lender requests
- Recent statements for checking, savings and retirement accounts
- A written Verification of Employment, which your lender requests from your employer
- Your teaching license, EMT or firefighter certification, or volunteer service letter, if your VOE does not show your role
- For a new Maryland job, the signed, non-contingent offer letter
- Your homebuyer education certificate
Mistakes that slow buyers down
- Using a lender that is not MMP-approved. They cannot offer the program, no matter how good their rate looks.
- Underestimating household income. The limit counts every adult in the home, not just the borrowers.
- Leaving education until the end. It is an easy item to finish early.
- Large deposits or new debt during underwriting. Talk to your loan officer before moving money or financing a car.
Ready to start?
If you are a teacher or first responder planning to buy in the next year, the best time to start is now, while you can line up your documents and education without the pressure of a contract deadline. Take the two-minute eligibility check and a loan officer who offers First Homes will follow up with your numbers, or read the full program details on our First Homes overview.