The state-run Maryland Mortgage Program is increasing to $5,000 the down-payment and closing-cost assistance it makes available to its borrowers.

State officials also announced Monday that the mortgage program's interest rate is being lowered to 4.25 percent, the second recent drop.

The down-payment and closing-cost assistance -- which had been $3,500 -- comes in the form of a no-interest loan that's paid back when you sell the home, refinance or pay off the mortgage. It's known as DSELP, for Downpayment and Settlement Expense Loan Program.

Other programs provide additional assistance on top of that money, such as House Keys 4 Employees, an employer-help initiative. (Here's the list of participating employers.)

The mortgage program requires borrowers to attend a homebuying workshop, so include that in your buying timeline if you want in. Most of the Baltimore region has specific housing-counseling requirements, listed here.