County residents interested in buying a home may qualify for a no-interest loan to assist with the down payment or closing costs under a county-administered program.
The Montgomery Homeownership Program will provide up to $25,000, or up to 40 percent of a prospective homeowners income (whichever is less), to approved buyers.
The buyers may also get a mortgage loan with a competitive rate from the Maryland Mortgage Program.
Applicants must be at least 18 years old to apply and have a valid social security number; U.S. citizenship is not required.
In addition, the applicant must be a first-time homebuyer, defined as someone who has not owned residential property for three years or more. However, a non-first time buyer may be eligible if they agree to purchase a home in a targeted area.
Finally, there are total household income limits for eligibility, which vary by location and the size of the household.
The no-interest loans must be repaid upon the sale, payoff or transfer of the home.
“I recommended the county begin offering this sort of down payment assistance three years ago, when I was on the council. I wanted to ensure that more people in the county had access to financial assistance that would help them purchase a home,” said County Executive Marc Elrich in a press release. “Programs like this enable us to create more pathways to homeownership that lead to new homeowners in Montgomery County.”
The county has committed $1 million in FY2020 to this program with the state of Maryland.