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MPDU Homeownership Program

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Description

Montgomery County's Moderately Priced Dwelling Unit (MPDU) Program offers affordably priced townhomes and condominiums - both new and resale - to first-time homebuyers who have a moderate household income (see list of minimum and maximum income levels below).

When MPDUs are available for sale, DHCA conducts Random Selection Drawings to determine who is eligible to purchase them.  Participants are selected to purchase a home based on a number of factors.

Households must be able to qualify for a mortgage; pay a down payment; pay settlement fees including advance taxes and advance insurance; and pay a monthly mortgage payment, utilities, and other costs.  Special financing and down payment and closing cost assistance are available through the Housing Opportunities Commission.

In addition, MPDU owners are responsible for all home maintenance, home improvements, condo fees (if applicable), and compliance with homeowner or condominium rules and regulations. For new homes, the builder is responsible for all warranty items.

Program Rules

Homes that are purchased through the MPDU Program, whether new or re-sale, have controls on them.  New and some resales homes have 30 year controls; other resale homes have 10 or 15 year controls. These controls are in the form of restrictive covenants that state:

Benefits of MPDU Home Ownership

Are you Eligible?

  1. You are NOT eligible to participate in the MPDU purchase program if you currently own a house or have owned a house anywhere in the past five (5) years.
  2. INCOME Minimums and Maximums (all incomes are gross household income; that is, household income before taxes)
    • minimum annual household income: $35,000
    • maximum annual household income (effective March 17, 2014):

      Eligible Household Size
      and Maximum Income
      Household Size Maximum Income
      1 $52,500
      2 $60,000
      3 $67,500
      4 $75,000
      5 $81,000

NOTE: The median income afor the Washington DC area declined slighlty from 2013 to 2014.  Therefore, some 2014 income limits are lower than the 2013 levels.

  1. Participants in the MPDU purchase program MUST be able to:
    • pay a down payment, settlement fees and other closing costs, and
    • afford the monthly mortgage and other expenses for the property
  2. Financing  Applicants for the MPDU purchase program must provide a mortgage pre-qualification letter from an HOC participating Mortgage Lender in an amount of at least $120,000.  Special financing and down payment and closing cost assistance are also available through the Housing Opportunities Commission (HOC).

How to Apply - Easy as 1...2...3!

Step 1:  Attend First-Time Home-Buyer Class

Step 2:  Attend MPDU Orientation Seminar

Step 3:  Attend MPDU Application Session

NOTE:  You may take the first and second classes in either order.  You do not have to take the First Time Homebuyer Class before the Orientation Seminar.  You just need to take both of these two classes before signing up for the Application Session.

Note:  Incomplete applications will not be accepted.  Do not sign up for the Application Session until you:

Steps and Instructions
Step Instruction
Step 1

Attend a First-Time Home-Buyer Class conducted by Housing and Community Initiatives (HCI).  These home-buyer classes are held in the Council Office Building (COB) an average of three (3) times per month.

Sign up for a First-Time Home-Buyer Class.

After completing this class, you will receive a First-Time Home-Buyer Class Certificate of Completion.

Step 2

Attend an MPDU Orientation Seminar where you will learn about the program benefits, application and selection processes, and program rules.  These MPDU Orientation Seminars are generally held once per month in the Council Office Building (COB).

Click here to sign up for an MPDU Orientation Seminar.

Note:  it is important to arrive on time for these sessions.  If you arrive late, you will not be able to attend the seminar and you will have to reschedule.

After completing this seminar, you will receive the Application folder for the MPDU sales program.

Step 3

The final step in the application process is to attend an MPDU Application Session. At the Application Session, your completed application and supporting documents will be reviewed and processed.  These MPDU Application Sessions are held several times every month in the Council Office Building (COB).  Parking for the application session is available in the public parking section of the garage attached to the COB.  The entrance is at the corner of E. Jefferson St. and Monroe Street and says "Public Parking" above the entrance.  You cannot enter the parking garage from any other entrance.  Parking is free for up to one hour.

Click here to sign up for an MPDU Application Session.

At the MPDU Application Session, you must provide ALL of the following documentation (applications with incomplete documentation will not be accepted):

  1. The completed MPDU Application form
    (which is given to you upon completion of the MPDU Orientation Seminar)
  2. The First-Time Home-Buyer Class Certificate of Completion form
    (which is given to you upon completion of the First-Time Homebuyer's Class
  3. A mortgage Pre-Qualification Letter
    Your prequalifying letter must be from an approved HOC lender and in the format required or your application will not be accepted.  Please ensure the lender letter you are providing is the original.  Copies will not be accepted.
  4. A copy of your most recent tax return along with W-2 forms
  5. If your taxes do not show your current address and you are seeking a priority point for living in Montgomery County, proof of residency (lease, utility bill, etc.)
  6. Copies of the two most recent pay stubs for each household wage earner
  7. Any other documents required for your application, as indicated in your application folder.

Please ensure that you have made copies of all documents which you need to turn in at the application session.  Montgomery County budget restrictions prohibit the MPDU office from making copies for you.