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Montgomery Employee Down Payment Assistance Loan (MEDPAL)

Statewide, Maryland

Last verified
See what you qualify forOfficial program site →
Assistance

$25,000

The maximum the program publishes — not an offer

Income limit

$228,000

The household income limit the program publishes

Price cap

$1.5M

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Montgomery Employee Down Payment Assistance Loan (MEDPAL)?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) is a deferred second loan for homebuyers in Statewide, Maryland.

  • Maryland DHCD MMP MEDPAL - up to $25,000 additional deferred 0% DPA EXCLUSIVELY for Montgomery County government employees buying in Montgomery County. Layers on top of MMP first + standard MMP DPA second. 640 FICO. County-Wide (Montgomery County only).
  • Maryland DHCD's Montgomery Employee Down Payment Assistance Loan (MEDPAL) is a partnership program providing additional down-payment / closing-cost assistance EXCLUSIVELY to MONTGOMERY COUNTY GOVERNMENT EMPLOYEES who purchase a home in Montgomery County. Provides up to $25,000 in additional 0% deferred second-mortgage assistance, layered on top of an MMP first mortgage and standard MMP DPA second. The MEDPAL second is non-amortizing - no monthly payment - due on sale/refinance/transfer/payoff. Eligibility restricted to active Montgomery County government employees (county departments, agencies, MCPS public school staff, Montgomery College staff, and partnered Montgomery County government entities per current MEDPAL guidelines). Income up to $228,000 (Montgomery County high-cost limit). 640 FICO. Homebuyer education required.
  • Funding comes from State and Bond.

How much assistance does it provide?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) offers up to $25,000 in assistance.

  • Buyer contribution: No mandatory MMP minimum borrower contribution; agency overlays may impose minimum.
  • 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?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by 0% deferred soft second. Full balance due on sale, refinance, transfer of title, payoff of first mortgage, or non-owner-occupancy. No monthly payment. No forgiveness schedule.
  • The assistance is recorded in 3rd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB waived in federally targeted tracts and for qualifying veterans.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO across all eligible first-mortgage products.
  • A completed homebuyer education course, through MMP-approved homebuyer education provider network.
  • Residency: Property must be located in Montgomery County, Maryland and be the borrower's primary residence. County-Wide eligibility.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien.
  • MONTGOMERY COUNTY GOVERNMENT EMPLOYEE RESTRICTION: At least one borrower must be an ACTIVE EMPLOYEE of Montgomery County government (county departments, agencies, MCPS - Montgomery County Public Schools, Montgomery College, or other partnered Montgomery County government entities per current MEDPAL guidelines). Employer verification letter / employment verification required at reservation. Property must be located in Montgomery County, MD. FTHB required (waived in federally targeted tracts and for qualifying veterans). Owner-occupied primary residence. 640 FICO, 45% DTI. Income $157,500 - $228,000 (Montgomery high-cost tier per MEDPAL fact sheet). Purchase price within MMP Montgomery County acquisition-cost limits (up to $1,535,015). Homebuyer education required. MMP-approved lender + master servicer. Schema does not include a 'specific government employer' boolean - the Montgomery County government employer restriction is the program-defining eligibility criterion, captured here in special_requirements / special_population_notes / program_description.

The program excludes

  • Manufactured homes
  • Purchases above the $1.5M price cap
  • Households above $228,000

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) limits household income to $228,000.

  • 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?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) caps the purchase price at $1.5M.

  • Eligible property types include Single-family detached, 2-unit owner-occupied (per overlays), condo (approved), townhouse, PUD.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Montgomery Employee Down Payment Assistance Loan (MEDPAL) serves buyers purchasing in Statewide, Maryland.

  • The program targets specific areas: Montgomery County is a high-cost MD county with elevated income / purchase-price limits. Federally targeted census tracts within Montgomery County receive additional MRB FTHB-waiver benefit.

How do you apply?

Applications for Montgomery Employee Down Payment Assistance Loan (MEDPAL) go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through MMP-approved homebuyer education provider network..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through MMP Lender Online portal at rate lock. MEDPAL designation flagged with Montgomery County government employer verification at reservation., and are subject to availability.

  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.

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