Down payment assistanceMaryland
HOC Mortgage Purchase Program 3% Down Payment and Closing Cost Assistance
3% of the sales price
HOC adds 3% of the sales price as a second loan behind its first mortgage. No interest and no monthly payment. If you sell or pay off the first mortgage in the first 5 years, you repay a prorated share. Ask your lender to spell out what happens after year 5 before you sign.
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
- 3% of the sales price
- Type of help
- Deferred loan
- Where
- Montgomery County
- Run by
- Housing Opportunities Commission of Montgomery County (HOC)
- First-time buyer
- First-time buyers only
- 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%
- Monthly payment: None
- When you would repay: Sell the home or pay off the HOC first mortgage during the first 5 years and a pro rata share is due.
Who qualifies
- First-time buyers only. Every adult who will live in the home must have had no ownership interest in a primary residence during the last 3 years.
- Income. Household income of all adults age 18 and over who will live in the home: up to $119,532 for 1 person, $170,760 for 2, $199,220 for 3 or more (HOC limits published as effective 2023-04-05 and still posted 2026-09-22).
- Price. Sales price up to $806,598 and first mortgage up to $726,200 (HOC limits published as effective 2023-04-05).
- Only available with an HOC Mortgage Purchase Program first mortgage (FHA or conventional) through an HOC participating lender.
- At least one borrower must hold a first-time homebuyer education certificate.
- May be combined with other assistance HOC has approved, including the 5 for 5 closing cost loan for buyers who work in Montgomery County.
| Area | 1 person | 2 people | 3+ people |
|---|---|---|---|
| Montgomery County | $119,532 | $170,760 | $199,220 |
How to apply
- 1Complete a first-time homebuyer education class from a HUD-approved agency and keep the certificate.
- 2Contact a lender on HOC's participating list and ask for the HOC first trust mortgage with the 3% assistance option. HOC does not take applications directly.
- 3Your lender checks the 640 minimum score, income, and price limits and reserves the loan with your ratified contract.
- 4HOC prepares the second lien documents and funds the assistance to your title company at settlement.
Watch out for
- This is a deferred loan, not a grant. Selling or paying off the first mortgage in the first 5 years triggers a prorated repayment.
- You cannot pair it with McHAF. If McHAF funds are available and you qualify, compare both with your lender.
- The 3% comes with HOC's first mortgage rate for this option. Compare the full package, rate included, against other financing.
Good fit when McHAF is out of money or you are over its cap. Three percent covers most of a minimum down payment on a conventional loan.
Straight answers
Is the 3% ever forgiven?
HOC's page describes a pro rata repayment if you sell or pay off the first mortgage in the first 5 years. It does not publish a forgiveness date, so treat it as a deferred loan and have your lender confirm the terms in writing.
Can I use it with any lender?
No. It only works with an HOC Mortgage Purchase Program first mortgage from one of HOC's participating lenders.
Can I combine it with McHAF for more help?
No. HOC's McHAF guidelines exclude the 3% option. You choose one.
Sources
- HOC Closing Cost Down Payment Assistance Program page (Option 2) (read Sep 22, 2026)
- HOC Mortgage Purchase Program page (read Sep 22, 2026)
- HOC Income and Sales Price Limits (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.