City of Frederick Community Partners Incentive Program (CPIP)

What is City of Frederick Community Partners Incentive Program (CPIP)?

City of Frederick Community Partners Incentive Program (CPIP) is a deferred second loan for homebuyers in Frederick, Maryland, administered by Frederick Community Action Agency (FCAA), City of Frederick Housing and Human Services.

• The Community Partners Incentive Program (CPIP) is the City of Frederick's local partner program under the Maryland DHCD CPIP. Income-eligible first-time homebuyers buying within the City of Frederick can receive up to $5,000 - a $2,500 0% deferred loan from the City matched by $2,500 from Maryland DHCD. Both loans are repayable on payoff, refinance, sale, or transfer. Buyers must qualify for a CDA/MMP first mortgage and complete FCAA homebuyer education.
• Up to $5,000 combined assistance.
• $2,500 City + $2,500 State match.
• 0% deferred loans.
• Must buy within the City of Frederick.
• Funding comes from City of Frederick local match ($2,500) plus Maryland DHCD ($2,500).

How much assistance does it provide?

City of Frederick Community Partners Incentive Program (CPIP) offers between $2,500 and $5,000 in assistance.

• Award tiers: Local City match up to $2,500, matched by up to $2,500 from Maryland DHCD for a $5,000 total.
• The program can be combined with Maryland Mortgage Program (CDA) first mortgage (required).
• Amounts are the program's published maximums, not an offer — Frederick Community Action Agency (FCAA), City of Frederick Housing and Human Services determines any individual award.

Do you have to pay it back?

City of Frederick Community Partners Incentive Program (CPIP) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Repayable at payoff or refinance, or upon sale or transfer of the property.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Frederick Community Partners Incentive Program (CPIP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Frederick Community Partners Incentive Program (CPIP) limits household income to $196,680.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Frederick Community Partners Incentive Program (CPIP) caps the purchase price at $806,500.

Where does it apply?

City of Frederick Community Partners Incentive Program (CPIP) serves buyers purchasing in Frederick, Maryland.

• The program targets specific areas: City of Frederick Census Tracts 7501 and 7502 are designated target areas.

How do you apply?

Applications for City of Frederick Community Partners Incentive Program (CPIP) go through Frederick Community Action Agency (FCAA), City of Frederick Housing and Human Services, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Frederick Community Action Agency (FCAA), a HUD-approved Housing Counseling Agency.

2. 2

   Contact Frederick Community Action Agency (FCAA), City of Frederick Housing and Human Services to reserve funds

   Funds are reserved through First-come, first-served; annual funding set through the city budget process; FCAA processes complete applications, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.