HOC Program Highlights

HOC of Montgomery County | At-A-Glance

HOC of Montgomery County | At-A-Glance

AVAILABLE PROGRAMS Mortgage Purchase Program (MPP)
ELLIGIBLE AREA Montgomery County, MD
ELIGIBLE BORROWER(S) Each adult occupant must be a first-time buyer.
RATES See Chart
DPA AVAILABLE HOC offers downpayment and/or closing cost assistance which can be combined with the HOC first mortgage in the MPP. The assistance can be used only to pay for various closing fees or the downpayment .
LOAN TYPE FHA, Fannie Mae HFA Preferred and Freddie Mac HFA Advantage
PURCHASE LIMITS Purchase Price Limits
TIMELINE REQUIREMENTS 60 days from loan reservation to loan purchase
HOMEBUYER EDUCATION At least one borrower in the household must provide a certificate of completion of a first-time homebuyer education class: More Info

Check Out Today’s Rates & Offerings

HOC of Montgomery County | Rates & Offerings

Mortgage Purchase Program

Housing Opportunities Commission (HOC) Mortgage Purchase Program

First-time buyer requirement (borrower and spouse including NPS) no homeownership in the past 3 years

  • Must be principal residence
  • Maximum Income Limits
  • Maximum Sales Price Limits

Reservation to HOC Pre Closing Package 
  • HOC will review within 48 hours
  • Post-Closing Compliance Review- What is the timeline to delivery to HOC.
  • Within 10 days of settlement, forward closed loan to US BANK. (HOC’s Master Servicer) follow their U.S. Bank FHA Loan Delivery Checklist.
  • Within 10 days of settlement, forward a post compliance package to HOC (follow MBS Post-Closing Compliance Checklist) for pre purchase approval.
  • Reservation to Lock expiration is 60 days

Reservation to US Bank Loan Purchase is 120 days

Settlement of loans MUST take place within 60 days from reservation data in eHP System.The interest rate reserved will be locked for 60 days only.  If Settlement occurs AFTER the 60 day Reservation to Purchase requirement period, the following applies:

  • A one-time 15 Day Extension at the same interest rate can be granted; approval from HOC is requried PRIOR to the expiration of the lock.  Lenders MUST request this extension by using the EXTENSION FORM and submit timely.
  • A second option is available for loans that cannot settle within this one-time 15 day extension period; please note that no more than a 30 day total extension period will be granted.  These loans will close at the HIGHER of the (1) interest rate of the original lock,  or (2) the interest rate at the time of the extension.

  • Household income calculation (borrower + spouse (including NPS) + everyone 18 years of age or older)
  • Assistance offered as a 0% Interest, 5-year deferred second mortgage
  • Assistance is 3% of the sales price
  • Maximum DTI 45% with 640-679 FICO
  • Maximum DTI is 50% with 680 FICO
  • Past 3 years signed federal income tax returns AND/OR tax transcripts for all borrowers and spouse (even NPS)
  • Eligible area: Montgomery County

Offering Option 1
w/o Purchase Assistance
Option 2
w/Purchase Assistance
McHAF First
MPP FHA 6.375% 7.125% 7.000%
Fannie Mae & Freddie Mac
Conventional 95 Loans
(LTV up to 95%)
6.500% 7.250% 7.125%
Fannie Mae & Freddie Mac
Conventional 97 Loans
(LTV 95.01% – 97%)
6.625% 7.375% 7.250%