If buying a house ranks near the top of your wish list, you might be shopping during one of the toughest real estate economies to date.

That’s because mortgage interest rates, spiking materials costs — partially tariff-related — and persistently low inventory have kept prices high in Maryland. Rental prices have similarly trended upward.

Local governments, attuned to the economic uncertainty, have devised some financial incentives to retain more households on their tax rolls. Some of them are loans to be repaid later, but others are entirely forgivable for homeowners who plan to stay put. Eligibility and income restrictions apply. Here is a sampling of the down payment, closing cost and home-buying incentives available, organized by jurisdiction:

Anywhere in Maryland

  • Maryland households with disabilities qualify for HomeAbility, a 0% interest second lien with a maximum of $45,000 to assist with down payment and closing costs. It is deferrable until sale, refinance or transfer of the home.
  • Maryland homebuyers with student debt of at least $1,000 can receive up to 15% of a home’s purchase price to pay off that outstanding debt with a maximum limit of $20,000.
  • Maryland will match employer down payment contributions of up to $2,500. The aid is a no-interest loan paid back when the house is sold.
  • Users of the Flex 5000 or Flex 3% Maryland Mortgage Program loans can receive either $5,000 for down payment and closing costs or a loan equal to 3% of the first mortgage. Both of those no-interest loans have payments deferred.
  • The 1st Time Advantage 6000 loan comes with a $6,000 loan for down payment and closing costs, deferrable for the life of the first mortgage.

Baltimore

  • City government and quasi-city agency employees who have been employed for at least six months are eligible for $5,000 to put toward down payment and home closing costs, in the form of a five-year, forgivable loan.
  • Baltimore’s Live Near Your Work program will match participating employers’ contributions of up to $2,500 for down payment and closing cost assistance.
  • First-time homebuyers who earn less than 80% of the area-median income — about $72,000 for a single person, or $83,400 for a two-person household — can qualify for the city’s program to pay half their down payment, leaving cash for moving and other expenses. This program also provides subsidies to buy down mortgage interest rates and reduce the loan balance.
  • First-time homebuyers who purchase the house they’ve occupied for at least six months or have a household member with a disability can receive $5,000 through the city’s Direct Homeownership Assistance Program.
  • People who buy houses in certain neighborhoods can apply to Live Baltimore’s Buy Back the Block program for up to $15,000 in down payment assistance or $20,000 in home payment and renovation assistance.
  • The Buying Into Baltimore incentive is a $5,000, five-year forgivable loan awarded by lottery to people who attend a Live Baltimore Trolley Tour.
  • Homeowners who live in a previously vacant building are eligible for a Vacants to Value Booster, or a $10,000, five-year forgivable loan.
  • The West North Avenue Development Authority (WNADA) offers state employees who purchase in the 21216 or 21217 zip codes $25,000 toward down payment costs as an additional loan.

Baltimore County

  • Baltimore County’s Settlement Expense Loan Program awards up to $10,000 to low- and-moderate income households who are first-time homebuyers. The loan is forgivable if the homeowner agrees to live in the property for 15 years.

Howard County

Anne Arundel County

  • Arundel Community Development Services offers first-time homebuyers no-interest loans of up to $50,000 for closing costs, down payment aid and mortgage write-downs that can be deferred for up to 30 years. Borrowers’ incomes must be less than 100% of the area median income for the Baltimore area, or about $91,188 for a single person or $104,250 for two people.

Montgomery County

  • The Montgomery Homeownership Program offers recipients of the Maryland Mortgage Program up to a $25,000, interest-free loan for down payment and closing cost help, with any remainder applied to the principal balance. It’s deferrable for up to 30 years. A similar option provides the first mortgage plus 3% of the sales price of the property to be put toward the down payment or closing costs.
  • First-time homebuyers who work for the county government get $25,000 for down payment and closing costs from the Montgomery Employee Down Payment Assistance Loan, with any remainder applied to the principal balance. The loans are deferrable for up to 30 years.
  • The Housing Opportunities Commission of Montgomery County’s Revolving Closing Cost Assistance Program offers 5% of the sales price up to $10,000 as a second mortgage, to be paid off in monthly payments with interest.

Prince George’s County

  • The Pathway to Purchase program awards first-time buyers 0% interest, deferred payment loans of up to $25,000 for down payment and closing costs that can be forgiven after 10 years.

Harford County

  • Harford County’s Settlement Expense Loan Program gives first-time homeowners up to $20,000 for down payment, closing costs and loan reduction, with preference given to properties within the Southern County Task Force Area. Up to $10,000 is available for home purchases outside that area. It’s a 0% interest, deferable loan that is due at the end of the first loan term, or upon the sale or refinancing of the property.