Montgomery Homeownership Program

Montgomery Homeownership II Program – Down Payment Assistance!

The Montgomery Homeownership II Program is built around a Down Payment Assistance Loan (DPAL) that does only gets paid back when you sell your home in the future. The down payment funds are yours interest-free, and homebuyers typically pay back the money out of the value appreciation and your equity in the home when you sell it.

Here’s how the Montgomery Homeownership program works:

  • Up to $25,000 in Down Payment & Closing Costs Assistance┬áper household
  • The amount of Down Payment Assistance you can receive is calculated based on 40% of your household income, up to $25,000 in assistance
  • 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 – 1-2 person households can earn up to $130,320 per year. Get the other 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 $25,000!