Home Ownership Program Helps Pay for Down Payments, Closing Costs

A Montgomery County home ownership program has entered its second year helping home purchases by offering zero-interest loans for down payments or closing cost assistance, according to a joint statement from County Executive Ike Leggett and state Housing Secretary Kenneth Holt.

The county has committed $1 million to the program in fiscal year 2018, which began July 1. The program will run throughout the year, until funds are expended.

The Montgomery Homeownership Program leverages the Maryland Mortgage Program and is administered by the Maryland Department of Housing and Community Development, which provides similar down payment assistance across the state.

Even if homebuyers have qualified for a mortgage, down payments and closing costs can sometimes delay home purchases, Holt said in the statement. The hope is that the state-county partnership will allow more county residents to buy their first home.

The down payment assistance program will be available for buyers with qualified incomes to purchase a county home as their primary residence. The program is part of the county’s ongoing efforts to promote affordable and inclusive housing opportunities. It is managed on a first-come, first-served basis.

Program incentives include:

A zero-interest loan provided by Montgomery County equal to 40 percent of household income, up to $25,000 for down payment or closing cost assistance;

30-year fixed-rate financing on a first mortgage through a lender approved through the Maryland Mortgage Program;

Tax credit savings available through the Maryland HomeCredit Program; and

Streamlined and straightforward home buying and financing experience.

Potential homebuyers are subject to household income limits and must meet standard qualifications under the Maryland Mortgage Program, including completion of homebuyer education. The Maryland Mortgage Program is the state’s flagship homeownership program, providing fixed-rate mortgages, primarily to first-time homebuyers, along with down payment and closing cost incentives.

For more information or to apply, visit Montgomery Homeownership Program at http://mmp.maryland.gov/Montgomery/Pages/MontgomeryHomeownershipProgramII.aspx

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