Montgomery County Housing Assistance Fund (McHAF)

At a glance

Amount

Up to $25,000, capped at 40% of your qualifying income

Type of help

Forgivable 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 forgivable loan works

A second loan with no payment that is forgiven over time or after a set number of years in the home.

• Interest: 0%
• Monthly payment: None
• Forgiveness: Forgiven after 10 years in the home as your primary residence, with HOC's other conditions met. Sell during the first 10 years and a pro rata share is due.
• When you would repay: Sale of the home or payoff of the HOC first mortgage during the first 10 years. A refinance can subordinate the lien but does not forgive it.

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 Mortgage Purchase Program 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).
• Must be paired with an HOC Mortgage Purchase Program first mortgage from an HOC participating lender. McHAF has its own posted first mortgage rate.
• At least one borrower needs a first-time homebuyer education certificate dated within 2 years of settlement.
• Buyers holding liquid assets of 20% or more of the purchase price may not qualify. Cash and equity gifts count as liquid assets.
• No cash back at closing. Any excess is applied to the first mortgage principal.
• Can be combined with HOC's 5 for 5 closing cost loan if a borrower works in Montgomery County, and with approved outside assistance such as FHLBank grants.

How to apply

1. 1Take a first-time homebuyer education class from a HUD-approved agency. The certificate must be dated within 2 years of your settlement date.
2. 2Call a lender on HOC's participating list and say you want the HOC first trust mortgage with McHAF. Only these lenders can reserve HOC funds.
3. 3Your lender confirms income, credit, and first-time status, then reserves the McHAF amount with your first mortgage once you have a ratified contract.
4. 4HOC prepares the McHAF note and deed of trust and sends funds to the title company by ACH two days before settlement. Your title company must accept ACH.

Watch out for

• McHAF runs in funding phases. The ninth phase, $2 million, was announced 2026-08-17 and stays open only until the money is reserved. Confirm availability with your lender the week you write an offer.
• The loan is forgiven only if you keep the home as your primary residence for the full 10 years. A sale in year 6 still means repaying a prorated share.
• McHAF cannot be combined with HOC's 3% deferred assistance option. It is one or the other.
• A title company that will not accept ACH funding cannot settle an HOC loan. Ask early.

Straight answers

Sources

• HOC news release: Housing Opportunities Commission Offering Homebuying Assistance (2026-08-17) (read Sep 22, 2026)
• HOC Closing Cost Down Payment Assistance Program page (read Sep 22, 2026)
• HOC Mortgage Purchase Program page (first-time rule, 640 score, education) (read Sep 22, 2026)
• HOC Income and Sales Price Limits (read Sep 22, 2026)
• HOC McHAF Program Guidelines, Phase V (released 2022-08-08; structural rules) (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.