Press Releases
Montgomery County Executive Elrich Encourages First-Time Homebuyers to Apply for Assistance from $3 Million Available in Down Payment Support
For Immediate Release: Thursday, July 7, 2022
Montgomery County Executive Marc Elrich is encouraging first-time homebuyers to apply for assistance from the County’s $3 million in funding dedicated to two down payment assistance programs.
The two programs being funded by the County are the Montgomery Homeownership Program, administered by the State of Maryland’s Department of Housing, and the Montgomery County Homeownership Assistance Fund (McHAF) Program, administered by the Housing Opportunities Commission of Montgomery County (HOC). Each program will receive $1.5 million to assist first-time homebuyers.
The programs are accepting reservations and are available to help eligible homebuyers who purchase a moderately-priced home in the County. Reservations will be accepted until the funds are fully committed.
The assistance program for homebuyers is part of the County’s ongoing efforts to address severe housing cost burdens and provide more paths to homeownership. The County committed the $3 million for down payment assistance in Fiscal Year 2023, which started July 1.
“For many County residents, it is difficult to pull together a down payment due to rental housing cost burdens and racial wealth disparities,” said County Executive Elrich. “By providing significant assistance with down payment and closing costs, people have a chance to buy their first home. I have long advocated for this type of assistance and I am glad we have been able to continue and expand new homeowner supports.”
Applicants who qualify and apply for either the Montgomery Homeownership Program or the Montgomery Homeownership Assistance Fund Program may access down payment assistance loans in amounts up to $25,000—or up to 40 percent of the household income of the prospective homeowner (whichever is less). Funds may be used for down payment or closing costs. Approved buyers also will receive a competitive rate mortgage to help complete their homebuying process.
The Montgomery Homeownership Program is administered by the Maryland Department of Housing and Community Development, which provides similar down payment assistance across the State. Through its approved lender network, these down payment assistance loans work with the Maryland Mortgage Program to provide reasonable loans to first-time homebuyers.
“In this challenging housing climate, when interest rates are increasing and affordable housing inventory is low, the State of Maryland is always looking for innovative offerings to make homeownership affordable for its residents through the Maryland Mortgage Program,” said Maryland Department of Housing and Community Development Secretary Kenneth C. Holt. “The Montgomery County partnership is making homeownership a reality for citizens in an area that is known for higher housing costs. The program's huge success is a testament to the demand for a flexible financing option like the one we have successfully implemented for the past six years.”
The Montgomery County Homeownership Assistance Fund is managed by the Housing Opportunities Commission of Montgomery County. First-time homebuyers with qualifying incomes may apply for down payment and closing cost assistance through an approved lender listed on HOC's website. More information about the program can be found on HOC's homeownership website.
“We are proud to continue our partnership with the County providing homeownership tools and options to residents,” said HOC Acting Executive Director Kayrine Brown. “Our community is an exceptional place for families to live, work and grow and this down payment assistance helps people take advantage of these opportunities. We know that homeownership is often the first and critical step for families trying to build wealth and we're excited to support expanding homeownership in Montgomery County.”
These zero-interest down payment assistance loans can be used for modestly-priced homes in the County. The loans are to be repaid upon the sale, payoff or transfer of the home.
Details on the benefits of the loans can be provided by the State and HOC. For more information on how to apply, see each program’s respective website at Montgomery Homeownership Program VII for DHCD’s program or McHAF Program requirements for HOC’s program.
For more information or to apply, visit:
- Montgomery Homeownership Program Phase VII.
- Montgomery County Homeownership Program through the Housing Opportunities Commission.
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Media Contact: Lorraine Driscoll 240-461-5497
Categories: Housing