Maryland Expands SmartBuy Program, Increasing Student Loan Assistance for First-Time Homebuyers

The Maryland Department of Housing and Community Development has expanded its Maryland SmartBuy program, increasing the maximum student loan payoff assistance available to eligible first-time homebuyers from $20,000 to $25,000.

Related: Maryland SmartBuy

The program, known as Maryland SmartBuy 3.0, helps qualified Maryland residents purchase a home while also reducing or eliminating student loan debt. Officials say the increase is intended to make homeownership more affordable and accessible for working families across the state.

When combined with down payment assistance, eligible homebuyers could receive an average of up to $40,000 in total assistance, depending on income and program qualifications.

To qualify, borrowers must meet Maryland Mortgage Program requirements, have at least $1,000 in remaining student loan debt, and purchase an eligible home in Maryland. The student loan payoff amount cannot exceed 15% of the home's purchase price or $25,000, whichever is lower.

Since launching in 2016, Maryland SmartBuy has helped more than 1,850 Maryland homebuyers and was the first government-backed mortgage program in the nation specifically designed to address student loan debt.