Montgomery Homeownership Program VIII and the
Montgomery Employee Down Payment Assistance Loan (MEDPAL) are initiatives of the Maryland Mortgage Program (MMP) in partnership with Montgomery County, providing down payment and closing cost assistance loans to help eligible homebuyers purchasing in Montgomery County. Talk to your loan officer to see if you're eligible!
Montgomery Homeownership Program
- May be used by any MMP-eligible borrower purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage equal to 40% of the qualifying borrower income with a maximum amount of $25,000 for down payment and closing cost assistance. Any funds not needed for down payment or closing costs will be applied to principal curtailment (no cash-out).
- Second mortgage has a zero percent interest rate and repayment is deferred until sale, refinance, transfer, or 30 years, whichever happens first.
- The minimum down payment is set by the insurer, and the second mortgage funds can be used for the borrower contribution.
MHP Fact Sheet
Montgomery Employee DPA Loan
- May be used by approved Montgomery County employees (see fact sheet) purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage of $25,000. Any funds not needed for down payment or closing costs will be applied to principal curtailment.
- Second mortgage has a zero percent interest rate. It can be re-subordinated in the event of a non-cash out refinance (must be repaid in the event of a cash-out refinance) and must be repaid if the property is sold or transferred. At the end of 30 years, the loan is forgiven if not already paid off.
- The minimum down payment is set by the insurer, and the borrower must provide at least 1% of the purchase price with their own funds in addition to the second mortgage.
MEDPAL Fact Sheet
If you're ready to move forward on your home purchase:
Talk to a Lender - Your lender will confirm your eligibility for the Montgomery products and the Maryland Mortgage Program overall and will make sure you meet all the requirements, such as attending the right Homebuyer Education Class. Lenders will review factors such as your income, credit history and employment situation when considering your application.
Complete a Homebuyer Education Class - Completing a Homebuyer Education class prepares you to make the right decisions when purchasing your home. Homebuyer Education classes are available throughout Maryland and online. Homebuyer education must be completed by all borrowers.
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