The Housing Opportunities Commission of Montgomery County (HOC) provides competitive interest rate mortgages through its Mortgage Purchase Program (MPP) to qualified first-time home buyers purchasing in Montgomery County. The MPP is funded through a combination of the Commission’s sale of taxable or tax-exempt mortgage revenue bonds and Mortgage Backed Securities.
Down Payment and Closing Cost Assistance
HOC administers three separate closing cost and homebuyer assistance programs.
- County Closing Cost Assistance Program: HOC offers closing costs and down payment assistance (of 5% of the sales price up to $10,000) to any eligible first-time homebuyer who works in Montgomery County using the HOC First Trust Mortgage Program.
- Purchase Assistance: HOC offers purchase assistance (up to 3% of the sales price) for eligible first-time homebuyers using the HOC First Trust Mortgage Program. Eligible participants can use the assistance to cover down payment, closing costs, or other prepaid expenses.
- Montgomery County Homeownership Assistance Fund (“McHAF”): This closing cost program is used in combination with an HOC MPP first mortgage loan and provides substantial down payment and closing cost assistance. Households may receive a loan of up to 40% of their qualifying income for a maximum of $25,000. The loan is deferred for 10 years with a pro-rata portion due only upon sale, during the first 10 years, maybe subordinated with a refinance, and is forgiven after 10 years.
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