Down payment assistanceMaryland
Prince George's County Homeownership Equity Program (HEP)
Up to $30,000
A 0% second loan with no monthly payment. It is forgiven 20% a year, so after 5 years living in the home you owe nothing. Sell or move out sooner and you repay what has not been forgiven.
Funding was available the last time we checked.
Launched July 1, 2026.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Up to $30,000
- Type of help
- Forgivable loan
- Where
- Prince George's County
- Run by
- Prince George's County Department of Housing and Community Development (DHCD)
- 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 $1,000
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% (5.75% if you default)
- Monthly payment: None
- Forgiveness: 20% forgiven each year. Fully forgiven after 5 years of owner occupancy.
- When you would repay: Sale, transfer, or the home no longer being your primary residence within 5 years, or a refinance that does not meet the county's subordination rules. The unforgiven share is due.
Who qualifies
- First-time buyers only. The county's guidelines require first-time homebuyer status for HEP.
- Income. Gross income of everyone in the household age 18 and over, whether or not they are on the loan, up to 120% of Area Median Income: $139,500 for 1 person, $159,450 for 2, $179,400 for 3, $199,300 for 4, $215,250 for 5, $231,200 for 6, $247,150 for 7, $263,100 for 8 (county chart effective 2026-06-01).
- Price. None published. The home must fit your first mortgage approval.
- Extra help for: government employees.
- Property types: Single-family, Townhouse, Condo. Must be your primary residence.
- The home must be inside the I-495 Capital Beltway in one of the ZIP codes listed in the county's guidelines.
- The county's guidelines describe HEP buyers as county residents who fit one of its groups: public sector workers, former renters in designated areas inside the Beltway, or households with a multigenerational caregiver. Confirm your category with a certified lender.
- Apply only through a Certified Participating Lender. Fixed-rate first mortgage, no adjustable or balloon loans. Debt ratios up to 35% front and 47% back, no exceptions.
- Your $1,000 minimum can include earnest money, appraisal, inspection, insurance, credit report, and counseling fees. No cash back to you at settlement.
- Home must be owner-occupied or vacant when you contract, and you must get your own home inspection.
| Area | 1 person | 2 people | 3 people | 4 people | 5 people | 6 people | 7 people | 8 people |
|---|---|---|---|---|---|---|---|---|
| Prince George's County | $139,500 | $159,450 | $179,400 | $199,300 | $215,250 | $231,200 | $247,150 | $263,100 |
How to apply
- 1Complete an 8-hour homebuyer education class from a HUD-certified counseling agency and get the certificate before your lender submits. The $25 to $125 class fee can count toward your $1,000 contribution.
- 2Get pre-approved by a lender on the county's Certified Participating Lenders list with a loan officer who holds a county certification number.
- 3Go under contract on a home inside the Beltway with at least 21 business days left before settlement.
- 4Your lender submits the full HEP package with your contract. Incomplete packages are returned.
- 5The county needs 21 business days to process, plus 7 business days for closing documents once the lender's final papers arrive. Funds go to the title company at settlement.
Watch out for
- Location is everything. Homes outside I-495, or inside the Beltway but outside the listed ZIP codes, do not qualify.
- A quick close will not work. Plan for 21 business days after the county receives a complete file, not counting holidays or lender underwriting.
- Files that sit inactive for 30 days are returned, so respond to document requests quickly.
- The county caps lender fees at 3 points and title settlement fees at $1,100. Use a title company on the county's approved list.
- The program launched 2026-07-01 from the county's Housing Investment Trust Fund. Confirm funds are available when you write your offer.
HEP is the short-commitment option. Five years inside the Beltway and $30,000 is yours. The income ceiling is generous, so plenty of two-earner households fit.
Straight answers
Where do I have to buy?
Inside the I-495 Capital Beltway in Prince George's County, in one of the ZIP codes listed in the county's HEP guidelines. Ask your lender to confirm the ZIP code before you write an offer.
How fast is it forgiven?
20% per year. Live in the home for 5 years and the whole loan is forgiven. Sell in year 3 and you repay the remaining 40%.
Can I combine HEP with Pathway to Purchase?
The county lists them as separate programs with separate limits. Ask your certified lender which one fits you. HEP goes to 120% of AMI while Pathway to Purchase stops at 80%.
Sources
- Prince George's County DHCD Homeownership Equity Program page (read Sep 22, 2026)
- Homeownership Equity Program Guidelines (July 2026) (read Sep 22, 2026)
- Prince George's County AMI Limits FY27 (80% and 120% tables) (read Sep 22, 2026)
- DHCD First Time Home Buyers Assistance Programs overview (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.