First-time homebuyers can apply for a portion of a $3 million fund intended to provide assistance with down payments or closing costs via two new programs, officials announced.
The programs, the Montgomery Homeownership Program and the Montgomery County Homeownership Assistance Fund Program, went into effect on July 1, each with $1.5 million in county funding.
“The programs are accepting reservations and are available to help eligible homebuyers who purchase a moderately-priced home in the county,” according to a press release. Reservations will be accepted until all funds are committed to would-be buyers.
Qualified applicants for either program “may access down payment assistance loans in amounts up to $25,000, or up to 40 percent of the household income of the prospective homeowner (whichever is less),” the announcement reads.
“For many county residents, it is difficult to pull together a down payment due to rental housing cost burdens and racial wealth disparities,” County Executive Marc Elrich said in the release. “By providing significant assistance with down payment and closing costs, people have a chance to buy their first home.”
These no-interest housing assistance loans would be paid back upon the sale, payoff or transfer of the home. Approved buyers also will be able to get a mortgage at competitive rates.
The Maryland Department of Housing and Community Development will administer the Montgomery Homeownership Program. Information about the program, including how to apply, is available online.
The county’s Housing Opportunities Commission is managing the Montgomery County Homeownership Assistance Fund, and information about that program and how to apply also is now online.
Photo: © Andy Dean – stock.adobe.com
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