hey prescott.
See what you qualify for

Option 3 "MCHAF" Montgomery County Housing Assistance Fund

Montgomery County, Maryland

Last verified
See what you qualify forOfficial program site →
Income limit

$199,220

The household income limit the program publishes

Price cap

$806,598

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Option 3 "MCHAF" Montgomery County Housing Assistance Fund?

Option 3 "MCHAF" Montgomery County Housing Assistance Fund is a deferred second loan for homebuyers in Montgomery County, Maryland.

  • MCHAF (Option 3 of HOC's MPP) is the Montgomery County Housing Assistance Fund - a Montgomery County-funded enhanced down-payment assistance product offering up to $40,000 as a 0% interest deferred-payment second mortgage paired with HOC's MPP first mortgage. Administered by HOC of Montgomery County and funded by Montgomery County government to support workforce and moderate-income homeownership.
  • Option 3 of HOC's MPP - the Montgomery County Housing Assistance Fund (MCHAF). First-mortgage product paired with up to $40,000 in down-payment / closing-cost assistance as a 0% interest deferred-payment second mortgage. Funded by Montgomery County government to expand homeownership in the County.
  • Funding comes from MRB, HFA, and Local Government.

Do you have to pay it back?

Option 3 "MCHAF" Montgomery County Housing Assistance Fund 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 3 "MCHAF" Montgomery County Housing Assistance Fund 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: First-time homebuyer (no ownership of residential real estate in prior 3 years) or qualifying displaced homemaker.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO
  • A completed homebuyer education course, through HUD-approved housing counseling agencies serving Montgomery County; HOC homebuyer-education class accepted.
  • Residency: Property within Montgomery County, MD; buyer's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen permitted by HOC MPP and underlying first-mortgage product
  • Property in Montgomery County; buyer's primary residence. First-time homebuyer required (or qualifying displaced homemaker / 3-year non-owner). Maximum household income approximately $119,532 (1-person) to $199,220 (8-person). Maximum purchase price $806,598. Minimum FICO 640. HOC-approved homebuyer-education class required. MCHAF second mortgage is 0% interest, deferred for the life of the loan.

The program excludes

  • Manufactured homes
  • Purchases above the $806,598 price cap
  • Households above $199,220

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?

Option 3 "MCHAF" Montgomery County Housing Assistance Fund 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 3 "MCHAF" Montgomery County Housing Assistance Fund 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 3 "MCHAF" Montgomery County Housing Assistance Fund serves buyers purchasing in Montgomery County, Maryland.

How do you apply?

Applications for Option 3 "MCHAF" Montgomery County Housing Assistance Fund 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 HUD-approved housing counseling agencies serving Montgomery County; HOC homebuyer-education class accepted..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Lender-reserved through HOC's online lender portal; subject to HOC and County funding allocation., 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.

Learn this program

Short reads on how it works, in plain language. Free, no sign-up needed to read.

Free course from Hey Prescott

Option 3 "MCHAF" Montgomery County Housing Assistance Fund, explained

A short, free course on Option 3 "MCHAF" Montgomery County Housing Assistance Fund: what it is, who it is for, when it is repaid, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

Read the course

Other programs in Montgomery County, Maryland

See every program in Montgomery County, Maryland →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs