Down payment assistanceMaryland
Montgomery Homeownership Program (Maryland Mortgage Program)
Up to $50,000, capped at 40% of household income, as a 0% deferred second loan (closed 2026-09-01, funds committed)
Montgomery County puts up the money and MMP delivers it. The second loan is the lesser of $50,000 or 40% of your household income, at 0% interest with no monthly payment. It is due when you sell, transfer, refinance or pay off the first mortgage, or at 30 years. It is not forgiven. Anything not needed for down payment and closing costs is applied to your principal; there is no cash back.
Not taking new applications right now. Join the list and we will tell you when it reopens.
The state closed this program on September 1, 2026 after all funds were committed. It may reopen if more money is added. Join the list and we will tell you the moment it does.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Up to $50,000, capped at 40% of household income, as a 0% deferred second loan (closed 2026-09-01, funds committed)
- Type of help
- Deferred loan
- Where
- Montgomery County
- Run by
- Maryland Department of Housing and Community Development, Community Development Administration, with funds from Montgomery County
- First-time buyer
- First-time buyers, with exceptions
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Minimum credit score
- 640
- Homebuyer education
- Required
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% on the second loan
- Monthly payment: None
- When you would repay: Due on sale, transfer, refinance, payoff of the first mortgage, or at 30 years, whichever comes first
Who qualifies
- First-time buyers, with exceptions. First-time means no home owned anywhere in the last 3 years. Waived if a borrower is a veteran using the one-time exemption or you buy in a Targeted Area. You cannot own any other real property at closing.
- Income. The standard MMP household income limits for Montgomery County apply (effective 2026-06-24): $199,320 for 1 to 2 people and $232,540 for 3 or more. The assistance amount is also tied to income, since the second loan cannot exceed 40% of household income.
- Price. Standard MMP maximum acquisition cost for Montgomery County (effective 2026-06-24): $1,306,974, or $1,597,413 in a Targeted Area. The first mortgage cannot exceed $832,750.
- Property types: Single-family detached, Townhouse, Condo, Modular home. Must be your primary residence.
- The home must be in Montgomery County. Any Maryland first-time buyer who meets MMP rules can use it; you do not need to live or work in the county today.
- The second loan can cover the minimum down payment the insurer requires, so very little of your own cash may be needed.
- Cannot be combined with any other MMP product or with Partner Match. Employer, builder, developer and local jurisdiction assistance can be layered if agency guidelines allow it.
- Principal residence only. Works with FHA, VA, USDA and conventional first mortgages.
How to apply
- 1Ask an MMP approved lender whether the Montgomery Homeownership Program is accepting reservations. As of 2026-09-01 it is closed with funds fully committed.
- 2Finish an approved homebuyer education course within 12 months before settlement.
- 3Get pre-approved within the Montgomery County MMP income and price limits. The lender calculates your maximum second loan (40% of household income, up to $50,000).
- 4When the product is open, the lender reserves the loan after your contract is ratified. Reservations are first come, first served until the county's funds are committed.
Watch out for
- Status as of 2026-09-22: closed. MMP reopened the product 2026-07-21 (Directive 2026-07), raised the cap to $50,000 earlier in 2026 (Directive 2026-02), and closed it again 2026-09-01 (Directive 2026-09) because the funds were fully committed. Existing reservations are being honored. MMP says it will publish a new directive if more money becomes available.
- On 2026-09-22 the MMP daily rate sheet still showed a few reservations remaining by email request even though the product is closed in the lender system. Ask your lender to check that day's sheet.
- This program opens and closes fast. Join the waitlist on this page and have your pre-approval and education certificate done before it reopens.
- The second loan is repaid, not forgiven, and the 40% of income cap can make the real number much less than $50,000.
- Montgomery County employees should also look at MEDPAL, a separate MMP product with its own workforce income limits.
When this is open it is the richest state-run assistance in the DMV. When it is closed, get everything else ready so you can move the day it reopens.
Straight answers
Is the Montgomery Homeownership Program open?
No. MMP closed it to new reservations on 2026-09-01 because the county's funds were fully committed. Existing reservations are honored. MMP will issue a directive if it reopens, which it has done before (most recently 2026-07-21).
How is the $50,000 calculated?
You get the lesser of $50,000 or 40% of your household income. A household earning $100,000 could receive up to $40,000. Funds not needed for down payment and closing costs reduce your principal.
Do I have to pay it back?
Yes, at 0% interest with no monthly payment until you sell, transfer, refinance, pay off the first mortgage, or reach 30 years, whichever comes first.
Do I need to be a Montgomery County resident or employee?
No. The home must be in Montgomery County and you must meet MMP first-time buyer, income and price rules. County employees have a separate product called MEDPAL.
Sources
- MMP Montgomery County Specialty Products page (read Sep 22, 2026)
- MMP fact sheet: Montgomery Homeownership Program (dated 2026-04-08) (read Sep 22, 2026)
- MMP Directive 2026-09: Closing of the Montgomery Homeownership Program (2026-09-01) (read Sep 22, 2026)
- MMP Directive 2026-07: Montgomery County Homeownership Program Reopens (2026-07-21) (read Sep 22, 2026)
- MMP Directive 2026-02: MHP Assistance Limit Increase to $50,000 (read Sep 22, 2026)
- MMP daily interest rate sheet (MHP reservation status) (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 lines up the counseling, the lender, and the contract dates so the money shows up at closing.