Can You Buy a Home With Little to No Money Down in Maryland?

If saving 20% for a down payment feels like the biggest obstacle between you and buying a home, there is good news: you may not need anywhere close to 20% down to buy a home in Maryland.

For buyers exploring Southern Maryland down payment assistance, several financing paths may reduce the amount of cash needed upfront. Depending on your eligibility and the property, those options can include VA loans, USDA loans, FHA financing, and assistance through the Maryland Mortgage Program.

Some qualified buyers may even have a zero-down-payment option.

There is an important distinction, though. Zero down does not automatically mean zero dollars needed at closing. Closing costs, prepaid expenses, inspections, earnest money, and other costs can still be part of buying a home.

Here is how the major options work and what Southern Maryland buyers should know before beginning a home search.

Yes, Buying With Little to No Money Down May Be Possible

The idea that every homebuyer needs a 20% down payment is a common misconception.

Different mortgage programs have different requirements. Some eligible buyers may qualify for financing with no required down payment, while others may use a low-down-payment mortgage or combine an eligible loan with down payment assistance.

Your down payment is also only one part of your upfront homebuying expenses.

Depending on your transaction, you may need funds for expenses such as:

• Earnest money deposit

• Home inspection

• Appraisal or other lender-required costs

• Closing costs

• Prepaid property taxes and homeowners insurance

• Other lender or settlement expenses

Some costs may be covered through eligible assistance or negotiated seller credits when permitted, but buyers should not assume that a zero-down mortgage creates a zero-cash transaction.

The best starting point is determining which loan programs you may qualify for and estimating your complete cash-to-close requirement before shopping for homes.

VA Loans: A No-Down-Payment Option for Eligible Military Buyers

For eligible Veterans, active-duty service members, and certain surviving spouses, a VA-backed purchase loan can be one of the strongest low-upfront-cost financing options.

The U.S. Department of Veterans Affairs states that VA does not require a down payment on its home loan guaranty, although a lender may require one in some circumstances. VA-backed loans also do not require private mortgage insurance.

That can be particularly relevant for military buyers planning a PCS move to or from the NAS Patuxent River area.

A VA loan is not automatically free of upfront expenses. Many borrowers must pay a VA funding fee unless they qualify for an exemption. The funding fee can generally be financed into the loan. Other purchase-loan closing costs generally cannot simply be rolled into the VA loan amount.

Buyers and sellers can also negotiate certain closing costs subject to VA rules.

Military buyers should verify their eligibility, Certificate of Eligibility, lender requirements, property value, and estimated cash needed before assuming a transaction can be completed with no money out of pocket.

The official VA home loan buying process explains the benefit and steps for eligible borrowers.

USDA Loans: Another Potential Zero-Down-Payment Path

USDA Rural Development offers another possible no-down-payment route for qualified buyers.

The USDA Single Family Housing Guaranteed Loan Program provides eligible borrowers with 100% financing for qualifying properties in eligible rural areas. The program is designed for eligible low- and moderate-income households purchasing a primary residence.

This can make USDA financing worth investigating when buying in Southern Maryland, but eligibility should never be assumed based solely on a town or county name.

Both the borrower and property must meet applicable USDA requirements. Household income is part of eligibility, and the property must be located in an eligible area.

USDA provides an official property and income eligibility tool that allows buyers and lenders to investigate whether a particular address and household may meet program criteria.

Because eligibility boundaries and individual financial circumstances matter, check the actual property rather than assuming that every home in a rural-looking part of St. Mary’s, Calvert, or Charles County qualifies.

FHA Loans: A Lower Down Payment Option

A buyer who does not qualify for VA or USDA financing may still have options that require substantially less than 20% down.

HUD states that FHA-insured financing can allow a down payment as low as 3.5% of the purchase price in qualifying circumstances.

FHA loans are insured by the Federal Housing Administration and obtained through approved lenders. Borrowers still have to satisfy applicable credit, income, loan, property, and underwriting requirements.

FHA financing also has mortgage insurance requirements, so comparing only the initial down payment can give an incomplete picture.

A lender can help you compare estimated monthly payments, mortgage insurance, upfront costs, and total cash needed across the financing options available to you.

Maryland Down Payment Assistance Programs in 2026

Maryland buyers may also be able to reduce upfront costs through the Maryland Mortgage Program, administered by the Maryland Department of Housing and Community Development.

MMP offers mortgage and down payment assistance options for qualifying buyers. Eligibility varies by product and can involve household income, purchase-price limits, credit requirements, property requirements, homebuyer education, and lender underwriting.

For loans reserved on or after June 24, 2026, MMP's updated 2026 income and purchase-price limits apply.

First-Time Buyers

Under MMP rules, someone who has not owned residential property for three years or more can qualify as a first-time homebuyer, although specific exceptions and product rules can apply.

The 1st Time Advantage lineup currently includes several forms of assistance. Depending on the product and eligibility, assistance can include a fixed amount or a percentage of the first mortgage.

Importantly, buyers should understand how that assistance is structured.

Many current MMP down payment assistance options are 0% interest deferred second loans, rather than unrestricted grants. Repayment can become due when the first mortgage ends, such as through a sale, refinance, transfer, or payoff, depending on the specific product terms.

Repeat Buyers May Have Options Too

Down payment assistance is not exclusively for people buying their first home.

MMP Flex loans can be available to qualifying first-time and repeat homebuyers. Current Flex options include a $6,000 assistance loan and a Flex 3% Loan, both subject to program requirements.

For example, the current Flex 6000 product provides a $6,000 loan that can be used toward down payment and closing costs. It is structured as a 0% deferred second lien, with repayment triggered when the first mortgage ends.

This is why buyers should avoid treating every program advertised as "assistance" as free money.

The exact financing structure matters.

Does No Down Payment Mean No Money Needed at Closing?

Usually, those phrases should not be treated as interchangeable.

A down payment is the portion of the purchase price you pay rather than finance through your primary mortgage.

Your cash to close can include other expenses.

Even if your required down payment is $0, you could still encounter costs associated with inspections, closing, prepaid insurance, property taxes, lender requirements, and other parts of the transaction.

For VA borrowers, for example, the VA states that the funding fee may be financed, but other closing costs on a purchase loan generally cannot be financed into the loan. Seller credits may help with certain expenses when allowed and successfully negotiated.

Assistance programs may also help qualified buyers with down payment or closing costs.

The practical question is therefore not simply:

"How much do I need for a down payment?"

It is:

"Based on my loan, assistance eligibility, property, and transaction, how much cash should I expect to need from beginning to closing?"

That is a much more useful number for planning a home purchase.

Which Option Could Fit a Southern Maryland Buyer?

There is no single low-down-payment program that is best for everyone.

A simple starting comparison looks like this:

For military buyers around NAS Patuxent River, checking VA eligibility early can make sense.

For buyers considering properties that may fall within USDA-eligible areas, checking the specific address can help determine whether USDA financing deserves further consideration.

First-time buyers may want to investigate MMP's 1st Time Advantage products, while repeat buyers should not automatically rule out assistance because MMP Flex serves qualifying repeat buyers as well.

The right choice depends on the complete financing picture, not just which option advertises the smallest down payment.

How to Prepare Before Shopping for a Southern Maryland Home

A little preparation can prevent you from looking at homes based on an unrealistic estimate of what you need upfront.

Start by reviewing your income, debts, credit profile, savings, and comfortable monthly housing budget. Then speak with an appropriate mortgage lender about the programs for which you may qualify.

If you are considering the Maryland Mortgage Program, MMP recommends homebuyer education early in the process and makes its loans and assistance available through state-approved mortgage lenders. Education is required for many MMP loans and assistance programs.

Next, ask the lender to help you compare more than the down payment. Review:

• Estimated cash needed to close

• Monthly principal and interest

• Mortgage insurance or program fees

• Property taxes and homeowners insurance

• Assistance repayment terms

• Loan and program eligibility requirements

Once you have a realistic financing range, you can begin exploring Southern Maryland homes for sale and focus your search on properties that align with both your budget and financing.

Buyers considering areas such as California, Lexington Park, Leonardtown, Lusby, Prince Frederick, La Plata, Waldorf, or other Southern Maryland communities can also explore Southern Maryland communities before narrowing the search.

The goal is not simply to find the loan requiring the least cash on day one. It is to choose a financing and homebuying strategy you understand and can realistically manage.

If a smaller down payment could make homeownership more attainable, start by finding out which financing options you may actually qualify for. You can prepare for mortgage pre-approval before beginning your search, then work with The Southside Group Real Estate to explore homes throughout Southern Maryland that fit your budget and financing goals.

The Southside Group can help with the real estate side of your purchase, including buyers relocating or making a PCS move near NAS Patuxent River. For loan eligibility, rates, assistance requirements, and individual financing advice, work with an appropriate mortgage lender.