Down Payment Help for New Market Buyers: HAP, MMP & More

Worried your down payment is the only thing between you and a New Market home? You are not alone. Many buyers in Frederick County use local and state programs to bridge the gap and move forward with confidence. In this guide, you will learn how Frederick County’s HAP, the Maryland Mortgage Program, and other options can reduce upfront costs, plus what to do next. Let’s dive in.

Down payment help to know

Frederick County HAP

Frederick County’s Homebuyer Assistance Program (HAP) offers a 0% interest, deferred second mortgage up to $12,000 that you repay when you sell, refinance, or move out. Typical amounts are $10,000 for households at 51–80% AMI and up to $12,000 at or below 50% AMI, subject to funding. You must be a first-time buyer or have not owned in the past 3 years, plan to occupy the home, complete HUD‑approved education, and contribute at least $500 of your own funds. Lenders submit the application, and the County asks for about 21 days to process a complete file. See the county overview and fact sheet on the Homebuyer Programs page and the full HAP fact sheet for details on eligibility, property types, and amounts in the official HAP PDF.

Maryland Mortgage Program (MMP)

The Maryland Mortgage Program pairs your primary mortgage with down payment assistance. Options include a fixed $6,000 DPA, percentage choices like 3%, 4%, or 5% of the mortgage amount, HomeStart with 6% DPA for qualifying lower‑income buyers, Flex products for repeat buyers, and SmartBuy for buyers managing student debt. Most MMP DPA is a 0% deferred second that becomes due when the first mortgage ends. You must use an MMP‑approved lender, and some products allow you to combine local partner funds. Explore current product lines on the MMP 1st Time Advantage page and find participating lenders with the MMP Find a Lender tool.

Partner incentives and local add‑ons

In certain situations, small top‑ups can stack with MMP. For example, the City of Frederick’s Community Partners Incentive Program can add several thousand dollars for eligible properties and buyers. These are location‑specific, so confirm city limits and program rules before you write an offer. See program details on the Community Partners Incentive Program page.

Federal loan pathways to pair

You may also consider USDA Single Family Housing loans that offer 100% financing for eligible rural addresses. USDA eligibility is property‑specific, so check addresses on the official map. Learn more through the USDA property eligibility resource. Many lenders also pair FHA or VA financing with state or local assistance where allowed.

Who qualifies and how to check

HAP uses HUD income limits for the Washington MSA and caps eligibility at 80% AMI, adjusted for household size. MMP has its own income and purchase price limits that vary by county and product, plus owner‑occupancy rules. Since limits and amounts change, always verify current numbers on the HAP fact sheet and the MMP Income and Purchase Price Limits page. For HAP, co‑signers are not allowed, and the home must be your primary residence.

Can you stack programs

Yes, you often can combine HAP with an MMP loan, and some MMP products allow local partner funds. The exact stacking rules depend on the product, purchase price caps, and lender requirements. Confirm with your MMP lender and the Frederick County Division of Housing early, then align your offer and timeline accordingly. Review HAP guidance in the official HAP PDF and product allowances on the MMP 1st Time Advantage page.

What the process looks like

Before you shop

• Get prequalified with an MMP‑approved lender and ask if they handle HAP submissions. Use the MMP Find a Lender tool.
• Complete a HUD‑approved homebuyer education course. Frederick County points buyers to resources via the Homebuyer Programs page. Save your certificate for HAP.
• If you want 100% financing, check addresses on the USDA eligibility resource.

After you go under contract

• Your lender submits the HAP application to the County and reserves any MMP funds. Plan for roughly 21 days from a complete HAP submission to approval.
• For HAP, expect a home inspection, a one‑year home warranty, and a lead risk assessment if the home was built before 1978. You will also need to document your $500 minimum contribution.
• Coordinate timelines among lender, title, the County, and the seller. See the County’s application checklist and process flow in the HAP application packet.

Typical timeline

• Education and lender prequalification: 1 to 3 weeks.
• Home search and offer: varies by market conditions.
• Loan and assistance packaging: often 1 to 3 weeks before closing.
• County HAP processing: allow about 21 days once your file is complete. Standard mortgage underwriting timelines also apply.

Buyer‑ready checklist

• HUD‑approved homebuyer education certificate.
• Ratified sales contract.
• Two months of pay stubs and recent bank statements.
• Verification of employment and, if self‑employed, two years of tax returns.
• Signed mortgage application and appraisal.
• Home inspection report and one‑year home warranty confirmation.
• Lead risk assessment for homes built before 1978.
• Proof of at least $500 of your own funds for HAP.
• Lender to submit the full HAP application package.

Local resources

• Frederick County Division of Housing: program overviews and contacts on the Homebuyer Programs page.
• HAP eligibility and terms in the official HAP PDF.
• Maryland Mortgage Program product details on the MMP 1st Time Advantage page.
• Find participating lenders with the MMP Find a Lender tool.
• Check county limits on the MMP Income and Purchase Price Limits page.
• City of Frederick add‑ons: Community Partners Incentive Program.
• USDA map and guidance: USDA property eligibility resource.
• Nonprofit support: Habitat for Humanity of Frederick County.

Ready to map out your budget, compare programs, and shop smart in New Market? Reach out for a calm, step‑by‑step plan tailored to your goals. Connect with Myah C. Moxley to get started.

FAQs

What is Frederick County HAP and how does it work

• HAP is a county down payment loan at 0% interest with no monthly payment that you repay when you sell, refinance, or move, with typical amounts of $10,000 or up to $12,000 depending on income and funding, per the official HAP PDF.

Can I combine HAP with the Maryland Mortgage Program

• Yes, many buyers use HAP with an MMP loan, but stacking rules vary by product, so confirm details with your lender and the County using the HAP PDF and MMP 1st Time Advantage page.

What are the income and price limits for MMP in Frederick County

• Limits change regularly, so check the current county tables on MMP’s Income and Purchase Price Limits page or ask an approved MMP lender.

Do these assistance loans have monthly payments or interest

• HAP and most MMP DPA options are 0% interest and deferred with no monthly payment, and they become due when the first mortgage ends or you no longer occupy the home, per the HAP PDF and MMP program info.

Is New Market eligible for USDA zero‑down financing

• Eligibility is address‑specific, so check properties on the USDA property eligibility resource or ask a lender who works with USDA loans.