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Montgomery Homeownership Program

Statewide, Maryland

Last verified
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Assistance

$50,000

The maximum the program publishes — not an offer

Income limit

$229,460

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 Homeownership Program?

Montgomery Homeownership Program is a deferred second loan for homebuyers in Statewide, Maryland.

  • Maryland DHCD MMP Montgomery Homeownership Program - up to $25,000 additional deferred 0% DPA for first-time homebuyers buying in Montgomery County. Layers on top of MMP first + standard MMP DPA second. Open to ALL qualifying Montgomery County FTHBs (not restricted to government employees). 640 FICO. County-Wide.
  • Maryland DHCD's Montgomery Homeownership Program is a Montgomery County partnership program providing additional down-payment / closing-cost assistance to first-time homebuyers purchasing a home in Montgomery County, MD. Provides up to $25,000 in additional 0% deferred second-mortgage DPA, layered on top of an MMP first mortgage and standard MMP DPA second. The Montgomery Homeownership second is non-amortizing - no monthly payment - due on sale/refinance/transfer/payoff. Open to ALL qualifying Montgomery County first-time homebuyers (NOT restricted to government employees - that's MEDPAL). Income $196,680 (1-2 person) - $229,460 (3+ person) Montgomery County high-cost tier. 640 FICO. Homebuyer education required.
  • Funding comes from State and Bond.

How much assistance does it provide?

Montgomery Homeownership Program offers up to $50,000 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 Homeownership Program 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 Homeownership Program 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. Montgomery County HOC and partnered counseling agencies provide additional Montgomery-specific counseling.
  • Residency: Property must be located in Montgomery County, MD 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.
  • Property must be located in Montgomery County, Maryland. FTHB required (waived in federally targeted tracts and for qualifying veterans). Owner-occupied primary residence. 640 FICO, 45% DTI. Income within Montgomery County high-cost tier ($196,680 1-2 / $229,460 3+). Purchase price within MMP Montgomery County acquisition-cost limit (up to $1,535,015). Homebuyer education required. MMP-approved lender + master servicer. Open to all qualifying Montgomery County first-time homebuyers (no specific employer restriction - that's MEDPAL).

The program excludes

  • Manufactured homes
  • Purchases above the $1.5M price cap
  • Households above $229,460

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 Homeownership Program limits household income to $229,460.

  • 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 Homeownership Program 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.

Is there eligibility for specific groups?

Montgomery Homeownership Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses 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?

Montgomery Homeownership Program 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 Homeownership Program 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. Montgomery County HOC and partnered counseling agencies provide additional Montgomery-specific counseling..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through MMP Lender Online portal at rate lock. Montgomery Homeownership designation flagged at reservation; Montgomery County property verified., 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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