Buying in Montgomery County? This Program Can Cover Up to $50,000.
Montgomery County is one of the most expensive places to buy a home in Maryland.
Silver Spring. Rockville. Gaithersburg. Germantown. Bethesda. Prices add up fast, and so does the cash you need to close.
That is why the Montgomery Homeownership Program matters. It is one of the largest sources of Montgomery County down payment assistance available to first-time buyers, and it reopened for fiscal year 2027 in July 2026.
👉 Take the 60-Second Quiz to see if you may qualify.
What Is the Montgomery Homeownership Program?
The Montgomery Homeownership Program (MHP) is a Maryland Mortgage Program option that pairs an MMP first mortgage with a second loan for down payment and closing costs on homes in Montgomery County.
Per MMP Directive 2026-07, the program reopened on July 21, 2026, and takes reservations until funds are fully committed.
How Much Montgomery County Down Payment Assistance Can You Get?
The assistance is the lower of:
- $50,000, or
- 40% of your household income
Examples:
- Household income of $95,000 → up to $38,000 in assistance
- Household income of $140,000 → 40% is $56,000, so assistance is capped at $50,000
If you do not need the full amount for down payment and closing costs, the extra goes toward your loan principal. There is no cash back.
Do You Have to Pay It Back?
Yes, but not monthly. The assistance is a 0% interest, deferred loan. Payments are deferred for the life of the first mortgage.
It becomes due when you:
- Sell the home
- Refinance
- Transfer ownership
- Pay off the first mortgage
Who Qualifies?
Based on the current MHP fact sheet, buyers generally need to:
- Be a first-time homebuyer (no home owned anywhere in the past three years), unless using a one-time veteran exemption or buying in a Targeted Area
- Own no other real property at closing
- Buy a home in Montgomery County as a primary residence
- Use an MMP first mortgage and meet MMP income and purchase price limits
- Complete an approved homebuyer education class
What You Cannot Combine It With
MHP cannot be combined with other MMP assistance products or Partner Match funds. It can be combined with outside help from employers, builders or local jurisdictions that meet program guidelines.
Why Timing Matters
MHP funds are limited and reserved first-come, first-served. When money runs low, availability can change quickly.
That means getting pre-approved and knowing your numbers early can make the difference.
FAQ
How much is Montgomery County down payment assistance in 2026?
Up to $50,000, but no more than 40% of your household income.
Is the Montgomery Homeownership Program a grant?
No. It is a 0% deferred loan repaid when you sell, refinance, transfer or pay off the first mortgage.
Do I have to be a first-time buyer?
Generally yes, meaning no home owned in the past three years, with exceptions for certain veterans and Targeted Areas.
Can I use MHP with Partner Match?
No. MHP cannot be combined with other MMP products or Partner Match.
Which areas does it cover?
Homes located in Montgomery County, including Silver Spring, Rockville, Gaithersburg, Germantown, Wheaton and Bethesda.
Why Maryland Buyers Work With Joe Salem’s Team
Program rules change. Funding windows open and close. Lenders and loan types have to line up just right.
- Experience with FHA, VA, conventional and Maryland Mortgage Program financing
- Guidance on stacking state, county and employer assistance the right way
- In-house real estate support from Dave Wheaton to help structure strong offers
- Clear answers before you sign anything
Stop Guessing. Start Qualifying.
You do not need to read program PDFs line by line. In about 60 seconds, we can help you see which Maryland programs may fit your income, county and loan type.
👉 Take the 60-Second Maryland Down Payment Assistance Quiz
Program details are based on Maryland Mortgage Program information published by the Maryland Department of Housing and Community Development at the time of writing. Terms, rates, limits and funding can change at any time, and not every buyer will qualify. This article is general information, not a commitment to lend or an offer of credit. Maryland Down Payment Assistance is not a government agency or non-profit. Joe Salem, NMLS #180651. Equal Housing Opportunity.