Updated September 4, 2026: Montgomery County homebuyers may have access to down payment and closing-cost assistance through more than one program. The names and funding status can be confusing, so it is important to identify which program is open and which first mortgage must be used before writing an offer.
One current option is the Montgomery County Housing Assistance Fund, commonly called McHAF, offered through the Housing Opportunities Commission of Montgomery County (HOC). HOC announced a new phase of funding on August 17, 2026, providing eligible buyers with up to $25,000.
A separate program administered through the Maryland Mortgage Program recently offered up to $50,000, but the State announced that program’s funds were fully committed and closed it effective September 1, 2026. Existing reservations are being honored, and the program could reopen if additional funds become available.
HOC’s McHAF Program: Up to $25,000
HOC’s McHAF program can provide eligible Montgomery County buyers with assistance for a down payment or closing costs. The assistance is paired with an eligible HOC Mortgage Purchase Program first mortgage.
Key features announced for the current phase include:
- Assistance equal to as much as 40% of the borrower’s qualifying income
- A maximum McHAF loan of $25,000
- A 0% interest rate on the assistance loan
- No monthly payments on the assistance loan
- A 10-year deferred term
- Pro-rata repayment if the home is sold during the first 10 years, subject to the program’s terms
- Forgiveness after 10 years when all applicable conditions are satisfied
Program funds are limited. An announcement that funds are available does not guarantee that money will remain available when a buyer is ready to reserve a loan.
Other HOC Purchase-Assistance Options
HOC also lists a purchase-assistance option equal to 3% of the home’s sales price. The assistance is provided as a 0% deferred second mortgage and may be used for down payment or closing costs when paired with the appropriate HOC first mortgage.
Because the interest rate, first-mortgage requirements and repayment terms can differ by option, buyers should compare the entire financing structure—not only the assistance amount. A larger assistance loan does not automatically produce the lowest monthly payment or lowest long-term cost.
What Happened to the $50,000 Montgomery Homeownership Program?
The Maryland Mortgage Program reopened its separate Montgomery Homeownership Program on July 21, 2026. That version offered a 0% deferred second mortgage of up to $50,000, limited to 40% of the qualifying household income, for eligible buyers purchasing in Montgomery County.
On September 1, 2026, the Maryland Mortgage Program announced that the available funds had been fully committed and closed the program immediately. Existing reservations will be honored. If additional money becomes available, the State may issue a future directive reopening the program.
This is a good example of why buyers should verify program status immediately before relying on down payment assistance in an offer. County and state assistance programs can open, change or run out of funds with little notice.
Who May Qualify for Montgomery County Assistance?
Eligibility depends on the specific program. Requirements may include:
- Purchasing an eligible home in Montgomery County
- Meeting income and sales-price limits
- Completing approved homebuyer education
- Using an approved participating lender and an eligible first mortgage
- Meeting credit, debt-to-income and other mortgage underwriting requirements
- Occupying the property as a primary residence
- Meeting first-time-buyer requirements when applicable
The phrase “first-time homebuyer” does not always mean that a person has never owned a home. Some programs define a first-time buyer as someone who has not owned a principal residence during the previous three years. The exact definition must be checked for the program being used.
How Much Cash Could You Still Need?
Down payment assistance does not necessarily eliminate every out-of-pocket expense. Buyers may still need funds for an earnest money deposit, home inspection, appraisal, prepaid taxes and insurance, reserves or costs that exceed the available assistance and seller credits.
The right calculation starts with a complete estimate of the mortgage payment and total cash required. We can then compare the available assistance with other loan structures to determine which option best fits the buyer’s budget and long-term goals.
Check Funding Before You Make an Offer
Before relying on a Montgomery County down payment assistance program, buyers and real estate agents should confirm:
- Whether the program is currently accepting reservations
- Whether the chosen lender can offer the required first mortgage
- The maximum assistance available for the individual borrower
- The repayment or forgiveness terms of the second mortgage
- Any homebuyer-education or counseling requirements
- Whether the proposed settlement date provides enough time for program approval
Planning to Buy in Montgomery County?
The Chris Jordan Mortgage Team can help you compare Maryland and Montgomery County financing options, estimate your payment and cash requirement, and determine which programs may fit your situation. You can also review our Maryland down payment assistance guide for additional statewide and local options. If a specific program is temporarily closed, we can also review other available mortgage and down payment strategies.
Questions about Montgomery County down payment assistance?
Call us at (240) 670-5090 or email us at CJMT@mainstreethl.com.
Ready to explore your options? Start your prequalification online.
Program funding, guidelines and interest rates are subject to change. All loan programs are subject to borrower, property and program eligibility requirements.
