Grants, Loans, or Credits? Breaking Down Maryland’s Different Homebuyer Programs

When you start digging into Maryland homebuyer help, it can feel like alphabet soup: grants, second loans, credits, assistance, incentives. At some point you think, “Okay, but what’s the actual difference, and which type am I even supposed to care about?”

Breaking these into simple categories makes the whole thing much less overwhelming.

 Grants: money you usually don’t pay back

Some programs offer true grants—money applied toward your down payment or closing costs that you typically do not repay, as long as you meet the conditions. That might mean living in the home for a certain number of years or using a specific type of loan. Grants can be powerful because they cut the upfront cash you need without changing your monthly payment.

 Assistance as a second or deferred loan

Other programs give help in the form of a second loan, often with little‑to‑no payments due until you sell, refinance, or pay off the first mortgage. It is still “real” money—you are just not paying it back every month. This can be a great fit if you are okay with some of your future equity going toward repaying that help.

 Tax credits and ongoing savings

You may also see programs that offer tax credits or other ongoing savings rather than upfront cash. These can reduce your overall cost of owning over time, even if they do not change your closing numbers dramatically. They are easy to overlook, but they matter when you are thinking about the big picture.

 How to know which type fits you

The right mix depends on what you need more: immediate help getting in the door, or long‑term savings. That is where sitting down with a lender and a local agent who understand the trade‑offs can make a big difference. You want someone willing to say, “This program looks good on paper, but for you, this other option might make more sense.”

 People also ask

“Can I stack multiple programs together?”  

Sometimes. Certain grants and assistance programs can be layered; others cannot. That is why you need a team that knows the rules and can help you avoid accidentally disqualifying yourself.

“Is taking a second loan for assistance a bad idea?”  

Not automatically. It can be a smart way to get into a home sooner, as long as you understand when and how that second piece will be repaid.

If you want a clear, side‑by‑side look at what these program types would actually do for your numbers, reach out to Amanda Holmes to talk through real examples, not just definitions.