Montgomery County Homeownership Program announced that effective immediately the funding of $1M dollars appropriated to help buyers in Montgomery County with down payment and/or closing costs assistance funds. This money will go FAST! Buyers must act NOW….. There was a couple rounds of this money last year and it ran out in a month or so!
Highlights of the program are as follows:
- Montgomery Homeownership Program second lien will be a zero percent deferred down payment loan forgiven after 10 years.
- Maximum down payment loan will be 40% of total household income up to a maximum of $25,000.00 for down payment monies.
- Monies may be used for down payment and/or closing costs.
- No minimum contribution by the buyer (buyer typically gets in with no money out of pocket).
- Can be combined with MPP’s Revolving Closing Cost Assistance Program up to $10,000 (RCCAP/”5 for 5”) but the borrower must work in Montgomery County.
- Can only be used with the Option 1 MPP program. That is the lowest rate option program. Today’s rate for FHA is 2.875% and conventional is 3.625%.
- Income limits are extremely high for the program – 1 person household is $101,892 – 2 person household is $145,560; and 3 or more person household is $169,820.
- Buyer must be a first-time home buyer.
If you need more information on this or other loan programs contact our office for a referral to one of our Senior Loan Specialist for pre-approval. As always, please feel free to contact us with any questions or for pre-approval.