Montgomery County Commissioners: James R. Matthews, Chairman
Joseph M. Hoeffel
Bruce L. Castor, Jr.
The Program
The Homebuyers Program, established and administered by the Commissioners and the Department of Housing & Community Development, is directed to assist low, moderate, and median income households interested in purchasing a home in Montgomery County. Eligible participants may receive assistance with closing costs. Participants will be required to complete a counseling package and meet with the Counselor one on one to go over budget, credit, mortgage financing and home ownership responsibilities. Funds for the program are supplied through the County’s Affordable Trust Fund in coordination with the Recorder of Deeds Office.
Application Process
Applications can be obtained from the Montgomery County Department of Housing & Community Development (610) 278-3540. The funds are available to all qualified applicants on a first come, first serve basis. The Housing Programs Manager administers the Program through the Department of Housing & Community Development. Any eligible household interested in participating in the program must be income and loan eligible PRIOR to entering into an agreement of sale (or putting a deposit on a property). There is a $25.00 non-refundable fee payable at the time of application.
Household Eligibility
To be eligible for a loan, the household must:
Be a first time homebuyer or not owned a home within the previous three years;
Have a household income below the area median income;
Intend to occupy the property purchased as a primary residence;
Be creditworthy and able to qualify for a mortgage at or below the current market rate;
Currently reside and/or be employed full time within Montgomery County at the time of Program application and closing;
Complete the required counseling program prior to executing any contract of sale for the purchase of real estate;
Have a minimum of $3,000.00 liquid assets at the time of application (must be of your own funds).
2008 Household Income Limits
Family Size
80% Median Income
Median Income
1 Person
$41,600
$52,000
2 Person
$47,550
$59,400
3 Person
$53,500
$66,900
4 + Person
$59,450
$74,300
Cash Requirements
The minimum cash requirements from the program participants is:
Three percent (3%) of the sales price towards the down payment is required.
Two months’ mortgage reserve (PITI) is required prior to letter of intent being issued.
Applicants must obtain a Home Warranty for the property acquired.
Applicants must use their own liquid assets and may receive a matching gift up to 3% prior to Homebuyer Funds.
Assistance is not available if applicant has 10% or more of the sales price to put towards purchase.
Assistance amount is based on the selling price, liquid assets, closing costs, mortgage amount, and other fees paid in the acquisition of the property.
Property Eligibility
Property purchased under the program must:
Be an existing or newly constructed single family residence located in Montgomery County;
Have a contracted sales price that does not exceed Program's determined affordability.
Meet local codes, Housing Quality Standards, and lead based paint standards.
Be acceptable to the primary lender and insurer of the property.
Proper Disclosure
1. All assets must be fully disclosed at the time of application, otherwise the applicant is declined. 2. If at anytime, financial information changes while going through the program, the applicant must immediately notify the First Time Home Buyer's Program or may be subject to declination.
Grant Terms
Grant amount is based on the financial need of the applicant’s household, selling price of property, and household assets. Assistance up to a maximum of 10% of the estimated affordable sales price for participants. Interest rate of zero percent (0%).Repayment only if:
Home is sold, conveyed, granted or otherwise transferred;
Vacated or abandoned as a primary residence within 8 years from the date of purchase of the property;
