Gaithersburg Homebuyer Assistance Loan Program (GHALP)

What is Gaithersburg Homebuyer Assistance Loan Program (GHALP)?

Gaithersburg Homebuyer Assistance Loan Program (GHALP) is a deferred second loan for homebuyers in Gaithersburg, Maryland.

• The Gaithersburg Homebuyer Assistance Loan Program (GHALP) provides up to $25,000 in 0% interest deferred-payment second-mortgage assistance to first-time homebuyers purchasing primary residences within the City of Gaithersburg, MD. Administered by the City of Gaithersburg's Community and Public Relations Office and funded through City general-fund and HUD pass-through allocations.
• Up to $25,000 in down-payment and closing-cost assistance as a 0% interest deferred-payment second mortgage for first-time homebuyers purchasing within the City of Gaithersburg. No monthly payments.
• balance due upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• Funding comes from HOME, CDBG, Federal, and Local Government.

How much assistance does it provide?

Gaithersburg Homebuyer Assistance Loan Program (GHALP) offers up to $40,000 in assistance.

• Buyer contribution: Minimum $1,000 borrower contribution from own funds.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

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

• Repayment is triggered by Deferred 0% second-mortgage repayable upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

What are the income limits?

Gaithersburg Homebuyer Assistance Loan Program (GHALP) limits household income to 120% of the area median income, which varies by county and household size.

• Household income at or below 120% AMI for the Washington-Arlington-Alexandria HMFA; approx 120% limits $137,676 (1-person) to $259,618 (8-person). Up to $40,000 (<=80% AMI) or up to $25,000 (81-120% AMI).
• The limit applies to total household income, not only the borrower&rsquo;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?

Gaithersburg Homebuyer Assistance Loan Program (GHALP) caps the purchase price as follows: Per City of Gaithersburg annual program guidelines.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Gaithersburg Homebuyer Assistance Loan Program (GHALP) names veterans, educators, law enforcement officers, and firefighters among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Gaithersburg Homebuyer Assistance Loan Program (GHALP) serves buyers purchasing in Gaithersburg, Maryland.

How do you apply?

Applications for Gaithersburg Homebuyer Assistance Loan Program (GHALP) go through the administering agency, 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 agencies; homebuyer-education certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served subject to annual program funding., 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.