Part of the Maryland Mortgage Program (MMP) family, the Montgomery Homeownership Program provides eligible borrowers with up to $50,000 toward your down payment and closing costs! With income limits reaching $232,540, this program is built for the real cost of buying in Montgomery County, and it is honestly one of my favorite programs in the entire state. Here is how we set you up for success!
Fresh funding for the Montgomery Homeownership Program was released at 2:00 PM on July 21, 2026, and it is distributed on a first come, first served basis. Rounds of funding for this program have a history of getting claimed, and once the money is spoken for, buyers wait for the next release. If you are even thinking about buying in Montgomery County, this is the moment to get your file ready. A prepared buyer with a complete application beats a scrambling one every single time. Reach out today and let's get you positioned!
The Montgomery Homeownership Program is one of the Maryland Mortgage Program's county-partnership offerings. The funds come from Montgomery County and are distributed through the state's Community Development Administration, which means you get the structure and reliability of Maryland's flagship homebuying program combined with county money that is dedicated to Montgomery County buyers only.
Here is how it works: your first mortgage rate is set by the Maryland Mortgage Program, and the down payment assistance rides alongside it as a second loan of up to $50,000. That second loan carries a 0% interest rate with no required monthly payments. It does have to be paid back in the future when you sell the home or refinance, but until that day it just sits there quietly costing you nothing. One detail worth knowing: the assistance amount cannot exceed 40% of your household income, so your exact number depends on your situation (more on that below). Any funds not needed for your closing costs get applied towards your down payment resulting in a lower all in monthly mortgage payment.
Conventional, FHA, VA, and USDA loans are all eligible, and the home must be located in Montgomery County.
Let's talk about the number that makes this program special. Most down payment assistance programs cap household income around 80% of the area median, which in this region often means roughly $130,000 to $155,000 depending on household size. The Montgomery Homeownership Program's income limits are far more generous than most down payment assistance programs, which opens the door for buyers who assume they earn too much to qualify for anything. Here are the limits effective June 24, 2026:
| Limit | 2026 amount |
|---|---|
| Household income: 1 or 2 people | $199,320 |
| Household income: 3 or more people | $232,540 |
| Maximum acquisition cost (non-targeted areas) | $1,306,974 |
| Maximum acquisition cost (targeted areas) | $1,597,413 |
| Maximum mortgage limit | $832,750 |
Targeted areas are specific census tracts where the state offers enhanced limits and waives the first-time buyer requirement. Limits are set by the state and change periodically; see the official program fact sheet and income and acquisition limits, or ask Mike to run your numbers.
Two household rules to know before you count yourself in or out. First, every member of the household must be accounted for on the application, even people who will not be on the loan. Second, non-occupying co-signers are not allowed on this program. Between those rules, the 40% of income cap on your assistance amount, and the income limits themselves, the math gets tricky real fast. That is exactly why I calculate all of this for my clients up front, so you know your real numbers before you shop.
One more program rule worth knowing: this assistance cannot be combined with other MMP products or the MMP Partner Match, but it can be combined with outside help from employers, builders, developers, and local programs that meet state guidelines.
This is the part of the Maryland Mortgage Program that surprises almost everyone: the interest rate is published daily by the state, not set by the lender. You can see the current MMP rates here. Every approved MMP lender offers the exact same rate on the exact same day, so focus on working with the most knowledgeable lender with the ability to execute your loan smoothly and close quickly!
So what actually separates lenders on this program? Execution. MMP loans have their own documentation requirements, their own submission process, and their own fine details that trip up lenders who only touch this program a few times a year. Those stumbles are how closings get delayed and contractual deadlines get missed, and in a competitive market that can cost you the house or your deposit. Since the rate is identical everywhere, it only makes sense to work with the most reputable lender with the highest level of service and deep expertise in the program's details. First Home Mortgage is a top Maryland Mortgage Program lender, I work these loans constantly, and together we can close them in as little as 21 days. In Montgomery County's competitive market, a 21-day close on an assistance program is a genuine edge that helps my clients win.
Between the income limits, the 40% assistance cap, household member rules, and purchase price limits, there is a lot to take into consideration. In one free, no-pressure conversation I will run all of it for you and tell you exactly what this program is worth to you. No cost, no obligation.
Maryland native, licensed loan officer for nearly a decade, hundreds of families served, and one of the highest-rated loan officers on Google. Michael is with First Home Mortgage, a top Maryland Mortgage Program lender, and the Montgomery Homeownership Program is one of his favorite programs in the state.
Michael Basch · NMLS #1721748 · First Home Mortgage · NMLS #71603
Tell me a little about your situation and I will follow up, usually within one business day, with which programs you may qualify for and what they are worth to you.
