MD Down Payment Assistance

Montgomery County

The Housing Opportunities Commission loan (HOC) is a first time buyer loan program built for purchasers in Montgomery County.  There are two major benefits to the HOC loan program:


  1. 3% down payment assistance forgivable loan.  Montgomery County provides HOC borrowers a 3% loan to cover the majority of the down payment.  This loan is forgiven after living in the property for five years as a primary residence.
  2. For borrowers who also work in Montgomery County, the county will also provide a repayable loan of 5% of the sales price, up to $10,000.  This loan is repaid back to the county over ten years at an interest rate of 5%.
  3. For borrowers who a) qualify for conventional Freddie Mac financing and b) meet the income limits, an additional grant may be available.  Borrowers with less than 50% of area median income ($58,600) can get a $2,500 grant.  Borrowers with less than 80% of area median income ($93,760) can get a $1,500 grant.

So, particularly for buyers who work in Montgomery County you could find yourself being able to purchase in the county with little to no outlay of cash.  As a reminder, typically closing costs represent 3% of the sales price.


The program may only be combined with either Conventional or FHA financing and is meant for purchasers who have not owned real estate in the past three years.  There are income limits to the program as well which are based on your household size.  Here are the income limits below:

Household Size

Maximum Income

One person


Two people


Three or more people



Also, to be eligible for the HOC loan you need to attend a first time buyer class. I am one of the instructors for this class, and you may register at  It’s a helpful, three hour course covering all aspects of the home buying process.  You can also take the class online, by visiting and your home buyer education code is

Before, or after attending the class, please pre-qualify with me here:

I am always happy to answer any questions. Watch the video with more on this program, and other Maryland first time buyer benefits.

State of Maryland

The Community Development Administration (CDA) Maryland Mortgage Program (MMP) is a loan program that we offer through the Maryland Department of Housing and Community Development.  With MMP financing, you can choose between FHA and conventional financing.  However the conventional financing requirements are more strict. There are three major benefits of this program:

  1. For those who would like assistance with the down payment or closing costs, the program  has two options.  You could select a lower interest rate mortgage with a repayable, zero interest loan of $5,000 OR 3% of the sales price.  This money may be applied to your cash to close, and must be repaid when you move out or sell.  Or, you can apply for a grant of 4% of the loan amount.   More information at and the grant program comes with a higher interest rate.
  2. For those eligible for Conventional MMP financing, with credit scores about 680, you will be eligible for reduced mortgage insurance.
  3. With most of the MMP loan programs you may also apply for an MCC, which can save up to $2,000 a year in income taxes.   Borrowers cannot use the MCC with the 1st Time Advantage program, and you cannot have owned real estate within the past 3 years. Learn more:


The minimum credit score for CDA FHA is 640.  The minimum credit score for CDA conventional is 680.  You don’t need to be a first time buyer to participate in this program, but you can’t own real estate at time of purchase.

There are income limits to the program which are based on household size and household income.  The limits are dependent on the county you are purchasing in.  Sample income limits for the Maryland, DC Metro area are:

The full list of income caps by county are found here:

Watch the video on Maryland first time buyer benefits

This video also discusses the HOC loan, and more information on that program may be found here.

Please pre-qualify now for this loan program at, or you may always reach out to me.  This loan program requires a housing counseling class, which you may complete online.  Visit and your home buyer education code is