Montgomery County, MD First-Time Home Buyer Programs and Down Payment Help
Montgomery County buyers can apply to 2 local down payment programs, with help up to $25,000 through Montgomery County Homeownership Assistance Fund (McHAF) Down Payment/Closing Cost Assistance, on top of Maryland's statewide programs. Figures below were read from the administering agencies' own pages on September 11, 2026.
Local programs in Montgomery County
These are run by Montgomery County, separate from the state housing finance agency, and can usually be combined with a state loan. Check the program page for current funding before you apply.
| Program | Type | Amount | Income limit | First-time only | Where |
|---|---|---|---|---|---|
| Montgomery County Homeownership Assistance Fund (McHAF) Down Payment/Closing Cost Assistance Montgomery County (Housing Opportunities Commission of Montgomery County (HOC)) · source | deferred, 0% interest second mortgage | Up to $25,000 for down payment and/or closing costs | Must qualify for HOC's Mortgage Purchase Program (MPP) first mortgage income limits, published separately on HOC's Income and Sales Price Limits page | Yes | Montgomery County; must be paired with an HOC first mortgage |
| Revolving Closing Cost Assistance Program (RCCAP) "5 for 5" Montgomery County (Housing Opportunities Commission of Montgomery County (HOC)) · source | second mortgage, amortizing, 5% interest, 10-year term | 5% of the sales price, up to $10,000, for down payment and/or closing costs | Must qualify for HOC's Mortgage Purchase Program (MPP) first mortgage income limits | Check | Montgomery County; |
- Montgomery County Homeownership Assistance Fund (McHAF) Down Payment/Closing Cost Assistance. No monthly payments; if the home is sold or the first mortgage paid off within the first 10 years, a pro-rata portion of the assistance must be repaid to HOC.
- Revolving Closing Cost Assistance Program (RCCAP) "5 for 5". Unlike McHAF, RCCAP is repaid with regular monthly payments (not deferred) over 10 years at 5% interest. A related program, House Keys 4 Employees (HK4E), layers RCCAP on top of a Maryland CDA first mortgage for county-government employees only.
Income limits in Montgomery County
Down payment programs here are keyed to HUD's income limits for Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area (fiscal year 2026): the area median family income is $166,100 and the 80% limit that most programs use is $106,800 for a four-person household. Limits scale with household size; each program page has the full table. HUD income limits
Maryland statewide programs you can also use in Montgomery County
Maryland Mortgage Program (MMP), Maryland Department of Housing and Community Development (homebuyer programs page) runs 4 statewide programs open to buyers anywhere in Maryland, with down payment help up to 5% of the loan (about $22,345 on a median-priced home) through 1st Time Advantage 3%/4%/5% Loan. Most local programs above can be combined with a state first mortgage; check each program's pairing rule.
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| 1st Time Advantage 6000 source | Second mortgage | $6,000 loan for down payment and closing costs | Yes | n/a | Standard MMP income limits apply (varies by county and household size); see MMP Loan Eligibility page |
| 1st Time Advantage 3%/4%/5% Loan source | Second mortgage | Down payment assistance loan equal to 3%, 4%, or 5% of the first mortgage amount (borrower/lender selects the tier) | Yes | n/a | Standard MMP income limits apply |
| MMP Flex 6000 / Flex 3% Loan source | Second mortgage | $6,000 flat, or a loan equal to 3% of the first mortgage amount | No | n/a | Standard MMP income limits apply |
| Maryland SmartBuy (3.0) source | Program | Up to 15% of the home purchase price (maximum $25,000) to pay off qualifying student loan debt at closing; may be combined with $6,000 flat or 6% (if household income is at/below 50% AMI) MMP down payment assistance | Yes | 720 | Standard MMP income limits apply; the 6% DPA add-on requires household income at or below 50% AMI |
Montgomery County closing costs that differ from the rest of Maryland
Transfer tax: Montgomery County levies a County Transfer Tax computed at 1% of the selling price. Maryland's statewide recordation tax in Montgomery County is $8.90 per $1,000 (rounded up to the next $500 increment) on amounts up to $500,000, and 1.35% on the portion above $500,000; an $890 recordation-tax exemption is available on part of the price for owner-occupied purchases by qualifying (often first-time) buyers. A separate 0.5% Maryland state transfer tax also generally applies (with a partial exemption for qualifying first-time buyers). Source
contact Montgomery County Finance (240-777-8995) for County Transfer Tax specifics or the Courthouse Recording Office (240-777-9470) for state recordation-tax specifics before publishing a dollar recording fee.
Frequently asked questions
What down payment assistance is available in Montgomery County, MD?
Montgomery County Homeownership Assistance Fund (McHAF) Down Payment/Closing Cost Assistance (Montgomery County, up to $25,000); Revolving Closing Cost Assistance Program (RCCAP) "5 for 5" (Montgomery County, up to $10,000). Maryland statewide programs can be used here too.
What is the income limit for first-time buyer programs in Montgomery County?
Most programs cap income at 80% of HUD's area median, which is $106,800 for a four-person household in Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area (FY2026). Some programs allow up to 120% or 150% of median; each program page lists its own table by household size.
Is there a transfer tax in Montgomery County?
Montgomery County levies a County Transfer Tax computed at 1% of the selling price. Maryland's statewide recordation tax in Montgomery County is $8.90 per $1,000 (rounded up to the next $500 increment) on amounts up to $500,000, and 1.35% on the portion above $500,000; an $890 recordation-tax exemption is available on part of the price for owner-occupied purchases by qualifying (often first-time) buyers. A separate 0.5% Maryland state transfer tax also generally applies (with a partial exemption for qualifying first-time buyers).
What is the median home price in Montgomery County?
About $640,300, per U.S. Census Bureau QuickFacts, Montgomery County, Maryland - Median value of owner-occupied housing units, 2020-2024 (ACS 5-Year). Down payment help of up to $25,000 covers roughly 4% of that price.
Official sources
- Montgomery County: Montgomery County Homeownership Assistance Fund (McHAF) Down Payment/Closing Cost Assistance
- HUD income limits
- Montgomery County transfer tax
- U.S. Census Bureau QuickFacts, Montgomery County, Maryland - Median value of owner-occupied housing units, 2020-2024 (ACS 5-Year)
- Housing Opportunities Commission of Montgomery County - Homeownership
Montgomery County figures last verified against official sources on September 11, 2026.
This is general information, not financial advice. Program funding, limits and terms change; confirm the current rules with the administering agency and your lender before you rely on them.
See down payment help in all covered counties