Maryland Department of Housing and Community Development Expands Student Loan Payoff Assistance for First-Time Homebuyers, Celebrates National Homeownership Month

NEW CARROLLTON, MD (June 1, 2026) – Maryland Department of Housing and Community Secretary Jake Day today announced that the Department has expanded the state’s landmark Maryland SmartBuy initiative, the Maryland Mortgage Program’s loan product for first-time homebuyers to purchase a home and pay off student debt. To help manage purchase costs, eligible homebuyers can now receive up to $25,000 in student loan payoff assistance – a 25% increase from the current $20,000 limit.

“Building a competitive economy for working families in Maryland must include homeownership, which still remains one of the quickest paths to economic growth and stability for Marylanders,” said Secretary Day. “By continuing to strengthen the tools offered by the Maryland Mortgage Program, we are widening the pathway to homeownership and creating more opportunities for families to put down roots in the communities they call home.”

Maryland SmartBuy 3.0 enables qualified borrowers with student debt to purchase an eligible home in Maryland using conventional financing through the award-winning Maryland Mortgage Program. The Maryland SmartBuy program was created to make home purchasing more affordable for first-time homebuyers by eliminating eligible student loan payments. Launched in 2016, the program was the first government mortgage program in the nation to specifically address student loan debt and has since assisted over 1,850 Maryland homebuyers.

When paired with downpayment assistance, the increase of student loan payoff assistance brings the average total aid to $40,000 for homebuyers earning below 50% of the Area Median Income, and slightly over $30,000 for all other Maryland Mortgage Program applicants. Eligible borrowers must meet all Maryland Mortgage Program underwriting requirements and must have a minimum remaining student loan balance of $1,000, with a maximum eligible payoff amount equal to 15% of the home purchase price or $25,000, whichever is lower.

The announcement of the program expansion marks the start of National Homeownership Month in June, which celebrates the impact of homeownership on families, neighborhoods and communities. The Maryland Mortgage Program helps thousands of people achieve homeownership each year through a nationally recognized array of mortgage and down payment assistance options responsive to an ever-changing housing market. The program averages $1 billion in mortgage loan reservations annually and assisted 3,332 homebuyers in calendar year 2025.

To learn more about the Maryland Mortgage Program and how the Maryland Department of Housing and Community Development can help you become a Maryland homeowner, visit our website.

###

CONTACT

Allison Foster, Director of Communications | allison.foster@maryland.gov