• Hillary C

MMP: Montgomery Homeownership Program II


The Maryland Mortgage Program announced on October 25th, 2017 that they will bring back the “Montgomery Homeownership Program” to help first time home buyers with down payment assistance for purchases in Montgomery County, Maryland.

The program classifies a “first time home buyer” as someone who has not owned a property in the past three years. There are some exceptions to that rule, so still feel free to inquire about the program and we will see if your specific situation is allowed. There are a few other requirements with this program including a 640 minimum credit score and maximum income limits by county.

As of October 25th, the household income limits are:

Households of 1-2 members: $132,360

Households of 3 or more members: $154,420

The Montgomery Homeownership Program is offering eligible buyers 40% of their annual household income up to $25,000 as a zero percent deferred down payment assistance loan. This means that money has to be repaid to the program when you sell or refinance, but there is no interest on the money. Through the program, when using a conventional loan, the homebuyer also gets reduced mortgage insurance coverage which leads to extra savings on a monthly basis.

Let’s look at an example.

Jane Homebuyer is purchasing a single family home in Maryland for $300,000. She has $10,000 in savings to use towards this home purchase and makes $60,000 per year.

Option 1: She can use a standard, 3% down conventional loan and negotiate for the sellers to cover her closing costs. This means, she needs $9,000 out of pocket. Her monthly mortgage payment for this option is roughly $1,970.

Option 2: She can instead use the Montgomery Homeownership Program to get 40% of her income towards her down payment, which is $24,000. She can still ask that the sellers cover her closing costs. With the extra down payment assistance, she can now make a 10% down payment and with the assistance through the program, she now only needs to come out of pocket $6,000 instead of $9,000. With the larger down payment, this also means her mortgage payment will be cheaper. Her estimated payment now comes to $1,865/mo.

With the money Jane is getting through the program, she is paying $3,000 LESS cash out of pocket on this purchase, and saving $105 EACH MONTH.

This is just one example! Through this program you also may be able to structure your mortgage so that you can get into a home without any cash out pocket.

Interested in learning more?

Click on the “purchase” link here to get started: https://hcochin.gofirsthome.com/. We’ll then go over your options specific to your personal finances and your goals with this home purchase.

#MontgomeryCounty #downpaymentassistance #firsttimehomebuyer #Programs #loanprograms


This website is for informational purposes only. The information contained herein can change at any time, and there is no representation to the accuracy contained herein. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. Please note that the pre-qualification does not constitute a commitment or a loan approval but is instead a preliminary assessment of your current credit worthiness. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Main Street Home Loans is not a Financial Advisor, Tax Consultant or Credit Repair Company. Please make sure to consult your own Financial Advisor, Tax Consultant or Credit Repair Company regarding your specific financial situation. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. VA 580 FICO – Purchases only, must have Automatic Underwriting System (AUS) approval. No cash-out under 600. On a USDA Loan 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. On FHA loans, LTV’s of up to 96.5% for FHA loans. FHA 580 FICO – Credit score below 600 requires Automatic Underwriting System (AUS) approval. Fixed rate loans only. W2 transcript option not permitted. APR describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate. The APR allows a borrower to compare costs of credit because it factors in term, interest rate and fees associated with the loan. Adjustable rate mortgages (ARMs) are home loans with a rate that varies. Your interest rate and monthly principal and interest (P&I) payments will remain the same for a defined initial period, then adjust annually when that initial period is over. During the adjustable period, there will be an interest rate cap that sets a limit on how high your interest rate can go. This product is primarily for a borrower with good credit (min 680 FICO) but a low Loan-To-Value (95% max). Debt-to-income ratios apply. Investment condominiums not allowed. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Down payment assistance programs may require an educational class be taken. Down payment assistance programs are typically second mortgages that require the borrower to apply for a first mortgage. Testimonials appearing on this advertisement and Zillow, Yelp, Facebook, Twitter or other social media outlets are individual experiences of those who have used our services. Main Street Home Loans. does not provide incentives for testimonials or reviews. Any customer reviews on or before February 5, 2019 are for services performed prior to employment with Main Street Home Loans. MLO licensing information: DC MLO143670; VA MLO-740VA; MD 5762. Main Street Home Loans is a Division of NFM, Inc. NMLS 2893. NFM, Inc. is licensed by: DC # MLB2893; Virginia Mortgage Lender and Broker, Licensed by the Virginia State Corporation Commission # MC-2357; MD # 5330. For NFM, Inc.’s full agency and state licensing information, please visit www.nfmlending.com/licensing. NFM, Inc.’s NMLS #2893 (www.nmlsconsumeraccess.org). NFM, Inc. is not affiliated with, or an agent or division of, a governmental agency or a depository institution. Copyright © 2019.


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