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.

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.

Option 3 "MCHAF" Montgomery County Housing Assistance Fund is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer (no ownership of residential real estate in prior 3 years) or qualifying displaced homemaker. On credit, the program states: 640 minimum FICO. A homebuyer education course is required, through HUD-approved housing counseling agencies serving Montgomery County; HOC homebuyer-education class accepted. Residency requirement: 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.

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.

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.

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

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. Funds are reserved through Lender-reserved through HOC's online lender portal; subject to HOC and County funding allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.