Great news for buyers looking to purchase a home!
The Housing Opportunities Commission (HOC) has replenished $2 million in funding (as of August 2025) for the Homeownership Assistance Fund (McHAF). This program is designed to help eligible homebuyers with down payment and closing cost assistance when purchasing a home .
When combined with HOC’s Mortgage Purchase Program (MPP), buyers may qualify for assistance of up to 40% of their qualifying income, with a maximum benefit of $25,000.
How This Can Help You – A Simple Example
* Purchase price: $500,000
* 3% down payment: $15,000
* Estimated closing costs: $17,000
* Total needed: $32,000
With McHAF assistance of $25,000, your estimated out-of-pocket cost could be as low as $7,000.
And in today’s market, seller contributions are often available—meaning you may need little to no money at closing.
Montgomery County Homeownership Assistance Fund (McHAF) Highlights
* Assistance is provided as a second lien at 0% interest
* Fully forgiven after 10 years of owner occupancy (prorated annually)
* Maximum assistance: 40% of qualifying income, up to $25,000
– (Qualifying income of approximately $63,000 may allow for the maximum benefit)
* Funds may be used for down payment and/or closing costs
* No minimum contribution required from the buyer
* Homebuyer education counseling is required
* Reduced mortgage insurance rates available on conventional loans
Buyer Eligibility Requirements
* Minimum 640 credit score (up to 50% DTI allowed with scores above 680)
* Must be a first-time homebuyer (no homeownership in the past 3 years)
* Maximum liquid assets may not exceed 20% of the purchase price
* Income limits:
* 1-person household: $119,532
* 2-person household: $170,760
* 3+ person household: $199,220
* Maximum loan amount: $726,200
* Maximum purchase price: $806,598
Additional Benefit for Montgomery County Employees
Buyers who work in Montgomery County may also qualify for:
* A $10,000 closing cost loan
* Repayable over 10 years at 5% interest
* Loan amount calculated as 5% of the sales price
If you’re thinking about buying and want to see whether you qualify for this program, I’d be happy to walk you through the details and next steps.
Let’s explore your options and see how much assistance you may be eligible for.
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