Down payment assistanceMaryland
Frederick County Homebuyer Assistance Program (HAP)
$15,000 for households at 51% to 80% of AMI, up to $18,000 at 50% of AMI or below
A zero-interest second loan with no monthly payment. Nothing is forgiven. You repay the full amount when you sell, transfer the home, or move out. Because it sits behind your first mortgage, a refinance usually requires the county to agree to stay in second position.
Funding was available the last time we checked.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- $15,000 for households at 51% to 80% of AMI, up to $18,000 at 50% of AMI or below
- Type of help
- Deferred loan
- Where
- Frederick County, City of Frederick
- Run by
- Frederick County Division of Housing
- First-time buyer
- First-time buyers only
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Homebuyer education
- Required
- Your own funds
- At least $500
How the deferred loan works
A second loan with no interest and no payment. You repay it when you sell, refinance, or pay off the first mortgage.
- Interest: 0%
- Monthly payment: None
- When you would repay: Due in full when you sell or transfer the home, or when it stops being your primary residence.
Who qualifies
- First-time buyers only. First-time homebuyers only.
- Income. Total gross household income at or below 80% of the Washington MSA median, by household size (July 1, 2026 limits: $93,050 for one person up to $175,450 for eight). The $18,000 tier is for households at or below 50% of AMI ($58,150 for one person up to $109,650 for eight) and depends on funding. The county says use of the uncapped 80% figure is at the Director's discretion.
- Price. No purchase price cap published. The loan is sized by income tier, not by price.
- Property types: Single-family detached, Semi-detached, Townhouse, Condo, Modular or manufactured with state seal. Must be your primary residence.
- You must currently live or work in Frederick County and buy in Frederick County.
- Minimum 30-year fixed-rate first mortgage. Co-signers are not allowed; everyone on the loan must live in the home.
- Buy a one-year home warranty and get a home inspection by a licensed inspector before closing.
- Homes built before 1978 need a lead paint risk assessment by a Maryland certified inspector, with results to the county before loan approval.
- Settlement must be conducted by a title company with an office in Frederick County.
| Area | 1 person | 2 people | 3 people | 4 people | 5 people | 6 people | 7 people | 8 people |
|---|---|---|---|---|---|---|---|---|
| Frederick County | $93,050 | $106,350 | $119,650 | $132,900 | $143,550 | $154,200 | $164,800 | $175,450 |
How to apply
- 1Complete first-time homebuyer education from a HUD-approved counseling agency. The City of Frederick runs the local class; call 301-600-2077 or 301-600-3974 for the schedule. Do this before you are under contract so the certificate is ready.
- 2Get pre-approved for a 30-year fixed-rate mortgage and set aside at least $500 of your own money.
- 3Get a ratified contract on a home in Frederick County. The county requires the contract before an application can be submitted.
- 4Your lender submits the HAP application and supporting documents to the Division of Housing on your behalf. The county underwrites first come, first served and issues a commitment letter.
- 5Allow 21 days from a complete application to approval and settlement. Loan documents are signed and funded at closing and a lien is recorded.
Watch out for
- This is a deferred loan, not a forgivable one. The full amount is repaid when you sell or move out, so treat it as borrowed equity.
- First come, first served, and the $18,000 tier depends on funding. Ask the Division of Housing (301-600-6647) about availability before you write the offer.
- Twenty-one days is the county's processing window. Write settlement dates with room for it.
- The lead assessment and one-year warranty are your cost and your timeline. Line them up as soon as you go under contract on an older home.
- The county also runs House Keys 4 Employees for full-time county government employees using Maryland Mortgage Program loans, a $8,500 deferred loan plus a matching $8,500 for $17,000 total. It is a separate program.
Straightforward and generous for the price point. The 80% AMI cap reaches well into six figures here because Frederick counts as part of the Washington metro.
Straight answers
Is the Frederick County loan forgiven?
No. It is a zero-interest deferred loan. You make no payments while you live there, and you repay the full amount when you sell, transfer the home, or stop using it as your primary residence.
Can I use it in the City of Frederick?
Yes. The city is inside Frederick County. City buyers can also look at the City of Frederick's own programs, which the county says can be combined with HAP.
How do I qualify for the $18,000 instead of $15,000?
Households at or below 50% of the area median income (for example $58,150 for one person or $83,050 for four under the July 2026 limits) may get $18,000, based on funding availability. Everyone else under the 80% limit is eligible for $15,000.
Sources
- Frederick County Division of Housing, Homebuyer Programs (read Sep 22, 2026)
- Frederick County Homebuyer Assistance Program fact sheet (Rev July 1, 2026) (read Sep 22, 2026)
- Frederick County HAP income limits table (July 2026) (read Sep 22, 2026)
Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.
Programs are the easy part. Timing is the hard part.
Most buyers lose assistance on a deadline, not on eligibility. Sean helps you map out the counseling, the lender conversation, and the contract dates so nothing slips.