Montgomery County First-Time Homebuyers Program

What is Montgomery County First-Time Homebuyers Program?

Montgomery County First-Time Homebuyers Program is a deferred second loan for homebuyers in Montgomery County, Pennsylvania, administered by Montgomery County Office of Housing & Community Development.

• Helps low-, moderate-, and median-income households buy in Montgomery County with up to $10,000 (10% of affordable sales price) as a zero-interest deferred loan. Repayment triggered only if sold, transferred, vacated within 15 years, or used as investment property. Requires one-on-one counseling, county residency/employment, and a 3% buyer contribution.
• Up to $10,000 (10% of sales price).
• Zero-interest deferred loan.
• No monthly payment.
• Released after 15 years of owner-occupancy.
• Counseling included.
• Funding comes from Montgomery County Affordable Housing Trust Fund.

How much assistance does it provide?

Montgomery County First-Time Homebuyers Program offers up to $10,000 in assistance.

• The program asks buyers to contribute 3% of sales price from applicant's own liquid assets; minimum $3,000 liquid assets; two months PITI reserve; home warranty required.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Montgomery County Office of Housing & Community Development determines any individual award.

Do you have to pay it back?

Montgomery County First-Time Homebuyers 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 Repayment due if home is sold, conveyed, transferred, vacated or abandoned as primary residence within 15 years, or used as investment property.
• The assistance is recorded in Second 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 County First-Time Homebuyers Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Montgomery County First-Time Homebuyers Program limits household income to 100% of the area median income, which varies by county and household size.

• 2026 limits (household income cannot exceed Median Income): 1-person $85,900; 2 $98,200; 3 $110,500; 4+ $122,700. (80% AMI 4-person reference $98,150.).
• 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 County First-Time Homebuyers Program caps the purchase price as follows: No fixed cap; sales price may not exceed the Program's affordability determination for the household.

• Eligible property types include Single Family.
• New construction is eligible.

Where does it apply?

Montgomery County First-Time Homebuyers Program serves buyers purchasing in Montgomery County, Pennsylvania.

How do you apply?

Applications for Montgomery County First-Time Homebuyers Program go through Montgomery County Office of Housing & Community Development, 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 County-referred one-on-one housing counseling, completed before any agreement of sale..

2. 2

   Contact Montgomery County Office of Housing & Community Development to reserve funds

   Funds are reserved through First-come, first-served; income- and loan-eligible before agreement of sale. $25 non-refundable application fee., 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.