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Home > Housing Programs > Homeownership Programs > Frequently Asked Questions (FAQs)

Frequently Asked Questions

How much cash do I need?

Your lender will estimate this amount at application. You will need enough for down payment and the various closing costs.

Do I need to make the maximum income?

No. The amount of income you need to qualify will depend on the size of the mortgage you want. Your total household income can not exceed the maximum income. (Maximum Income includes all members of the household, 18 years of age and older who have an income).

What can I afford?

Your income & debt will determine the amount for which you qualify.

What is a down payment?

The difference between the sales price and your mortgage amount.

What is Settlement?

This is when you sign all of the loan documents and you become the owner of the property.

What are Closing Costs?

Closing Costs are various lender legal and recording fees paid at settlement.

What is Pre-approval?

It is a firm commitment by the lender of credit approval. It is given to you prior to finding a property.

What is Pre-qualifying?

The lender evaluates how much of a house you can afford prior to finding a property. It is based on information you give and may not involve a credit review.

Are the MPDU and HOC’s Homeownership Programs the same?

No. The MPDU Program and HOC’s First Trust Mortgages are two different programs run by two separate agencies.

HOC offers financing for all eligible persons. HOC also offers to their tenants/residents houses to purchase. If you are not a HOC resident, you are not eligible to purchase one of those homes, only financing.

Should I get a home inspection?

Yes. HOC requires one for all resale properties. A home inspection report identifies potential problems, items that need to be repaired or replaced, an estimate of the useful life of major systems and equipment. Your contract should be contingent upon your home inspection.

Is an inspection the same as an appraisal?

No. An appraisal is for the lender’s evaluation of the property value. An inspection is for your information about the house.

If all goes well, how long from contract to settlement?

Barring no complications, the loan process should take no more than 45 days.

Can I use my Housing Choice Voucher to purchase a home?

Typically no, however, if you have been in the FSS (Family Self Sufficiency Program) for 2 years or more and have an income of $24,000 and above, you may be eligible to participate if you are one of the randomly selected families chosen by HOC.

Is HOC also located in Anne Arundel, Baltimore, Fredrick, Howard and Prince George’s Counties?

No. HOC is for Montgomery County properties only. If you plan to purchase a home in another County, call that County’s local housing authority to see if they have a program similar to HOC.

I am still not sure what to do.

Feel free to call HOC at (240) 773-9200.

Should I come to HOC to complete an application?

No. Once you have contacted one of HOC’s participating lenders, you will be asked to complete a loan application after you have done the following:

• You have been pre-qualified by one of HOC’s lenders.

• You have found a home and have signed a contract to purchase (ratified contract).

Will I get the same rate from all of the HOC participating lenders?

Yes. Rates are determined by HOC and only participating lenders have HOC financing. To get HOC’s financing, you must use a lender that is participating in the program.

What if the lender does not return my call within a reasonable time?

If the lender does not call you, please feel free to contact any of our other lenders or call HOC.

What will the lender need?

• Most recent (3 years) Federal Tax returns of all borrowers.
• Most recent 2 month bank statements.
• Verification of all liquid assets.
• Employment/Income verification.
• Two most recent pay stubs and two years W-2’s (needed for all household members whether on the loan or not for eligibility determination)
• Prior bankruptcy, provide copy of petition.

©2007 Housing Opportunities Commission, All Rights Reserved. Information current as of 10/13/2007.
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