First-Time Homebuyer's Guide to Montgomery County, Maryland

Buying your first home in Montgomery County is very doable, and the county has more assistance in place than most first-time buyers realize. This guide walks the whole process, from budget to settlement, with the specific programs that can stretch your buying power. Everything here is what we will actually do together, in order.

Montgomery County runs several down payment and closing cost assistance programs, usually as zero-interest, deferred second loans paired with a Maryland Mortgage Program first mortgage. The Montgomery Homeownership Program (MHP) offers up to $50,000 for down payment and closing costs, repaid when you sell or refinance. The Montgomery County Homeownership Assistance Fund (McHAF) offers deferred assistance up to $25,000. The Housing Opportunities Commission runs its own products, including the "5 for 5" closing cost program and purchase assistance for buyers with county ties, and MEDPAL serves Montgomery County employees and MCPS union members.

Two warnings before you get excited. First, income limits and fund availability change with every funding round, so eligibility has to be checked against the current cycle. Second, the Maryland HomeCredit tax credit program is currently closed to new reservations as of 2026, so do not build your plan around it; verify what is open with a lender during your first conversation. There is also a first-time buyer reduction on state transfer and recordation taxes, plus the Homestead Tax Credit that caps assessment increases on your owner-occupied home.

• Consultation and numbers: budget, monthly payment math, timeline, and which programs you qualify for. Nothing gets messy if we start here.
• Pre-approval with a lender: I keep a short list of lenders who know Montgomery County programs. You choose, but you will not have to interview ten strangers.
• Neighborhood shortlist: built from your commute, school needs, walkability, and lifestyle, not from what is currently for sale.
• Showings and offer strategy: every offer I write carries your priorities, not just a price. In this market, terms and timing matter as much as the number.
• Settlement: inspections, repairs, title, final numbers, and the key on the counter. You will not negotiate alone at that table.

The biggest mistake is falling in love with a listing before understanding the payment math and your program eligibility. The second is treating the agent relationship as optional. Since the rule changes in August 2024, buyers negotiate their agent's compensation up front and in writing before touring, so the question is not whether to work with an agent, it is choosing the right one and knowing exactly what the arrangement costs.

“I remember sitting at my own settlement table as a first-time buyer with no one who could negotiate for me. That is exactly why I will never let a client of mine sit there alone.”

Harry Moore