Option 2 of the MPP

What is Option 2 of the MPP?

Option 2 of the MPP is a deferred second loan for homebuyers in Montgomery County, Maryland.

• DUPLICATE of record #16. The DPA One source PDF includes two rows for HOC's MPP Option 2 - one with provider 'Housing Opportunities Commission of Montgomery County' (correct) and one with provider 'Housing Opportunity Commission' (misspelled). This row preserves the misspelled-provider entry; both rows describe the same program.
• Option 2 of HOC's Mortgage Purchase Program (MPP) - first-mortgage product paired with up to $25,000 in down-payment assistance. (DUPLICATE row: source DPA One PDF lists provider as 'Housing Opportunity Commission' (singular, no 's'), which is a misspelling - the correct provider is 'Housing Opportunities Commission of Montgomery County.' Both rows kept per task instructions.).
• Funding comes from MRB, HFA, and Local Government.

Do you have to pay it back?

Option 2 of the MPP 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?

Option 2 of the MPP is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Option 2 of the MPP limits household income to $199,220.

• 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?

Option 2 of the MPP caps the purchase price at $806,598.

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

Where does it apply?

Option 2 of the MPP serves buyers purchasing in Montgomery County, Maryland.

How do you apply?

Applications for Option 2 of the MPP 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 serving Montgomery County; HOC homebuyer-education class accepted..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender-reserved through HOC's online lender portal., 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.