Montgomery Homeownership Program – Down Payment Assistance!

Pathway to Purchase is available for a limited time – it’s expiration date is tied to its funding being exhausted by County homebuyers. In Prince George’s County historically, programs like the Pathway to Purchase can run out in approximately 90 – 120 days.

The Pathway to Purchase Program is built around a Down Payment Assistance Loan (DPAL) that does not have to be paid back. This is essentially “free money” – the $10,000 loan’s balance due reduces by $1,000 each year for a term of 10 years, ending in a zero balance due. If you move or sell the house before 10 years, you owe the remaining balance.

Here’s how the Montgomery Homeownership program works:

  • Up to $40,000 in Down Payment & Closing Costs Assistance per household
  • The amount of Down Payment Assistance you can receive is calculated based on 40% of your household income
  • The Down Payment Assistance is structured as a 0% interest, deferred payment loan. This loan is issued in conjunction with a 30 year fixed rate mortgage through the Maryland Mortgage Program (MMP)
  • The funds are provided by Montgomery County & distributed by the Community Development Administration (CDA)
  • There are income limits for eligibility. Get the current limits now
  • There is no published expiration date on this program. The County can terminate the program at any time!

Down Payment Assistance Available is Scaled to Your Income

This truly is a great program for Montgomery County first time home buyers and is unique among the first time buyer mortgage programs available in the rest of Maryland. The Montgomery Homeownership Program provides down payment assistance of up to 40% of your total household income. The amount of total assistance available to a household is $40,000!