Frederick County Homebuyer Assistance Program (HAP)

What is Frederick County Homebuyer Assistance Program (HAP)?

Frederick County Homebuyer Assistance Program (HAP) is a deferred second loan for homebuyers in Frederick County, Maryland, administered by Frederick County Division of Housing (Department of Housing and Community Development).

• The Frederick County Homebuyer Assistance Program (HAP) helps local low- and moderate-income families buy their first home by providing up to $12,000 in down payment and closing cost assistance. Assistance is a 0% interest deferred loan secured by a lien, repayable on sale, refinance, transfer, or when the home is no longer the borrower's primary residence. It must be paired with a state or federal first mortgage (FHA, VA, USDA, or CDA/MMP) and may be combined with other assistance programs.
• Up to $12,000 in down payment/closing cost assistance.
• 0% interest.
• Deferred - no monthly payments.
• Can be layered with other programs.
• Funding comes from Frederick County.

How much assistance does it provide?

Frederick County Homebuyer Assistance Program (HAP) offers between $10,000 and $12,000 in assistance.

• Award tiers: Households at or below 50% AMI may be eligible for a $12,000 loan; households up to the uncapped 80% AMI may be eligible for a $10,000 loan.
• Buyer contribution: Minimum $500 of the buyer's own funds toward the purchase.
• The program can be combined with Other homebuyer assistance programs including House Keys 4 Employees and Maryland Mortgage Program products.
• Amounts are the program's published maximums, not an offer — Frederick County Division of Housing (Department of Housing and Community Development) determines any individual award.

Do you have to pay it back?

Frederick County Homebuyer Assistance Program (HAP) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due upon sale, refinance, transfer of title, or when the home is no longer the borrower's primary residence.
• The assistance is recorded in Subordinate (lien recorded in Frederick County land records) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Frederick County Homebuyer Assistance Program (HAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Frederick County Homebuyer Assistance Program (HAP) limits household income to 80% of the area median income, which varies by county and household size.

• Based on HUD Washington MSA AMI by household size (May 2025). $12,000 loan (50% AMI): 1=$57,400; 2=$65,600; 3=$73,800; 4=$81,950; 5=$88,550; 6=$95,100. $10,000 loan (uncapped 80% AMI): 1=$91,800; 2=$104,900; 3=$118,000; 4=$131,100; 5=$141,600; 6=$152,100.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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?

Frederick County Homebuyer Assistance Program (HAP) can be used for Single Family, Townhouse, Condo, Modular, and Manufactured.

• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Frederick County Homebuyer Assistance Program (HAP) serves buyers purchasing in Frederick County, Maryland.

How do you apply?

Applications for Frederick County Homebuyer Assistance Program (HAP) go through Frederick County Division of Housing (Department of Housing and Community Development), 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 HUD-approved Housing Counseling Agency; locally Frederick Community Action Agency / City of Frederick.

2. 2

   Contact Frederick County Division of Housing (Department of Housing and Community Development) to reserve funds

   Funds are reserved through First-come, first-served; underwritten by DHCD staff after a ratified sales contract; application submitted by the first lender, 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.