Maryland Boosts Student Loan Assistance for First-Time Homebuyers Amid National Homeownership Month

The Maryland Department of Housing and Community Development has enhanced its SmartBuy initiative, a program designed to help first-time homebuyers in the state tackle student loan debt while pursuing homeownership. According to the department, eligible buyers can now receive up to $25,000 in assistance to pay off student loans, a notable increase from the previous $20,000 limit. This expansion, announced at the beginning of National Homeownership Month, aims to make purchasing a home more attainable for Marylanders burdened by student debt.

The Maryland SmartBuy program, now in its 3.0 iteration, allows qualified individuals with student loan obligations to purchase eligible homes in Maryland. This is achieved through conventional financing facilitated by the Maryland Mortgage Program. Since its inception in 2016, the program has been a pioneering government mortgage product in the nation, specifically designed to address the challenge of student loan debt. To date, it has supported more than 1,850 Maryland homebuyers in achieving homeownership.

The increased student loan payoff assistance, when combined with available down payment assistance programs, could significantly bolster the total aid for eligible homebuyers. For those earning below 50% of the Area Median Income, the average total assistance now approaches $40,000. Other Maryland Mortgage Program applicants can expect an average total aid of over $30,000. To qualify for this expanded assistance, borrowers must meet the standard underwriting requirements of the Maryland Mortgage Program. Additionally, they must demonstrate a minimum remaining student loan balance of $1,000. The maximum amount of student loan debt that can be paid off through the program is capped at 15% of the home’s purchase price or the $25,000 limit, whichever is less.

The enhancement of the Maryland SmartBuy initiative underscores the state’s commitment to promoting homeownership as a pathway to economic stability and growth for its residents. The Maryland Mortgage Program, a recipient of national recognition, offers a comprehensive suite of mortgage and down payment assistance options. These programs are designed to adapt to the dynamic housing market and have historically aided thousands of individuals annually. In the calendar year 2025, the program facilitated mortgage loan reservations averaging $1 billion and assisted 3,332 homebuyers. The department encourages prospective homeowners to visit their website for more information on how the Maryland Mortgage Program can support their journey to owning a home in Maryland.

Article by Mel Anara, based upon information from the Maryland Department of Housing and Community Development.

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