How to Apply to the MPDU Sales Program
 

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Frequently asked questions

Summary of Steps for Applying to the MPDU Homeownership Program

MPDU Homeownership Program - Description

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

MPDU buyers 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.  The MPDU Program does not provide financing to purchase MPDUs.  Special financing and down payment and closing cost assistance are available through the Housing Opportunities Commission.

MPDU owners are responsible for all home maintenance, home improvements, condo and homeowner association fees (if applicable), and compliance with homeowner or condominium rules and regulations. 

Program Rules

Homes that are purchased through the MPDU Program, whether new or re-sale, have controls on them.  All new MPDUs, and some resale homes, have 30 year controls; a very few resale homes have 15 year controls. These controls are in the form of a legal document, known as MPDU restrictive covenants that states:

  • During the control period, the owner must occupy the home as his or her primary residence.  The unit may not be rented out.  The owner must certify before taking occupancy that he or she will occupy the unit as his or her primary residence during the control period.
  • During the control period, the owner must not refinance the property for more than the controlled resale price established by the MPDU office (owners are prohibited from refinancing the property based on the market value of the property).
  • During the control period, the owner can only sell their MPDU at the MPDU established controlled resale price through the MPDU Program.
  • During the control period, MPDU owners must not purchase another residential property anywhere.
  • When the MPDU is sold after the control period, the owner may sell the unit at a market price and must pay 50% of the excess profit to Montgomery County. For more information  see Requesting a Shared Profit Calculation.  
  • After the control period expires, it is strongly recommended that owners contact the MPDU office prior to refinancing their MPDU.  Refinancing does not relieve the owner of the obligation to make a shared profit payment to the County upon sale; therefore, it is important not to refinance for the full market value. The MPDU office can provide you with an estimate of the shared profit payment that would be owed to the County. 

Benefits of MPDU Home Ownership

  • MPDU purchasers own a home in Montgomery County at a greatly reduced price.  Living in Montgomery County provides access to high quality services and schools.
  • By purchasing an MPDU home with a standard 30-year fixed rate mortgage, the MPDU owner’s monthly mortgage payment will not increase each year, unlike rent which landlords typically increase annually.
  • MPDU owners are able to deduct mortgage interest and real estate taxes from their income tax.
  • Property taxes are based on the MPDU value of the MPDU, not a "market value."
  • MPDU owners have the freedom to make improvements to their home.  (Note, however, that only certain improvements can be credited toward the resale price of an MPDU.)
  • The maximum resale price for an MPDU home during the control period is what the MPDU owner originally paid for the MPDU, plus inflation and the cost of eligible improvements.

Who Is 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: $40,000
    • maximum annual household income (effective April 14, 2020):
       

      Eligible Household Size
      and Maximum Income

      Household Size

      Maximum Income

      1

      $61,500

      2

      $70,500

      3

      $79,500

      4

      $88,000

      5

      $95,500

      6

      $102,500

  3. 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.
  4. Financing.  Applicants for the MPDU purchase program must provide a mortgage pre-qualification letter from an in an amount of at least $150,000.  The MPDU Program does not provide financing.  Special financing and down payment and closing cost assistance are also available through the Housing Opportunities Commission (HOC).
  5. All adult wage earners in a household must be able to provide a copy of their U.S. Federal Tax Return for the most recent filing year.

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

Step 1:  Attend online First-Time Home-Buyer Class

Step 2:  Attend online MPDU Orientation Seminar

Step 3:  Complete onlne MPDU Application Tutorial

  • The MPDU Program does not mail applications for the MPDU purchase program. New, first-time homebuyers in the MPDU program need to attend the first two required online training sessions (Steps 1 and 2) in order to receive instructions for applying to participate in the MPDU program.  They must then complete an online Application Tutorial (Step 3) to turn in their completed application.
  • These classes are designed to answer all questions about the MPDU program, provide information about the MPDU purchase application and selection process, and provide information about homeownership responsibilities.
  • Current participants in the MPDU Program who have already  received a Certificate of Eligibility do not need to take the first two classes again - however, they must still complete the online MPDU Application Tutorial (Step 3) to turn in their renewal application and supporting documents.

Note: Incomplete applications will not be accepted. Before taking the online Application Tutorial, applicants must:

  • attend a First-Time Home-Buyer Class,
  • attend an MPDU Orientation Seminar,
  • obtain a mortgage pre-qualification letter from an HOC approved lender, and
  • gather all other documents needed for the application (as identified in the instructions received at the Orientation Seminar).

​ALL CLASSES ARE VALID FOR ONLY TWO YEARS. If you have not applied to the MPDU program within two years of taking any of the classes, you must re-take those classes before you can apply to the program.

Each registered student MUST use a separate email address, unless you are a family or individuals purchasing together. 

Steps and Instructions
Step Instruction

Step 1:

Attend an online First-Time Home-Buyer Class

Montgomery County has arranged for Housing and Community Initiatives (HCI) to conduct First Time Homebuyer classes for the MPDU program. These homebuyer classes are held online two or three times per month.

Click here to sign up for a Montgomery County MPDU sponsored First-Time Home-Buyer Class.

Note: It is important to be on time for these sessions. If you are late, you will not be able to attend the class and you must reschedule. After completing this class, you will receive a First-Time Home-Buyer Class Certificate of Completion.

The MPDU program will accept a Certificate of Completion from another first-time homebuyer class, but only if the class:

  • Has been taken within the previous two years; and
  • Is conducted by a nonprofit housing counseling agency certified by the U. S. Department of Housing and Urban Development (HUD) (you must provide documentation that the organization is HUD certified).

Several groups provide First-Time Homebuyer classes in Montgomery County, including:

Step 2:

Attend an online MPDU Orientation Seminar

Attend an MPDU Orientation Seminar where you will learn about the program benefits, application and selection processes, and program rules. You must take the First Time Homebuyer Class before the Orientation Seminar. These MPDU Orientation Seminars are held online, generally once or twice per month.

Click here to sign up for an MPDU Orientation Seminar.

Note: It is important to be on time for these sessions. If you are late, you will not be able to attend the seminar and you will have to reschedule. After completing this seminar, you will receive links to the Application materials and the Application Tutorial for the MPDU sales program.

Step 3:

Attend an online MPDU Application Tutorial

The MPDU Office no longer accepts paper applications. To apply you will need to create an online account through Montgomery County’s web portal called AccessMCG Extranet, which will be available in October. If you have completed both the First Time Homebuyer class and the Orientation Seminar within the past two years, you will receive an email invitation from the MPDU office to create your online account in late September.

After you create your account, you will be able to take the Application Tutorial (formerly known as the Application Session), complete the online application form, and upload your application documents. The Application Tutorial is an online training that includes tests that you must pass with a score of 80% or better. You will be able to review the tutorial and re-take the tests as many times as you wish.

 Before you take the online MPDU Application Tutorial, you must have ALL of the following documentation (applications with incomplete documentation will not be accepted):

  1. A sample completed MPDU Application form, which you will receive upon completion of the MPDU Orientation Seminar. You will use your sample completed application form to fill out an online application form.
  2. The First-Time Home-Buyer Class Certificate of Completion, which is given to you upon completion of the First-Time Homebuyers Class.
  3. A mortgage Pre-Qualification Letter. Your prequalifying letter must be from an approved 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 the instructions you received at the Orientation Seminar.

Applicants must keep copies of all documents for their records.