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.
The programs that can stretch your budget
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.
The seven steps, in order
The Initial Consult
An opportunity for us to learn more about each other, see if we're a good fit to work together, and if we are, start laying out a plan for a successful home search.
Pre-Approval
Learning about your financing options, how much you can afford, and what sorts of programs are out there is a really important early step. I always like to say, you wouldn't walk into a store without knowing how much money you have in your wallet, and the same is true for pre-approval.
Discussing the Forms
Buying real estate involves a lot of forms and paperwork, not that any of it is on paper anymore until settlement, but it's still a lot of forms. I like to discuss them early on so you get the chance to pre-read many of the forms you're going to face. Then when the right house comes along, you're prepared and not surprised by all the different contingencies and terms.
The Neighborhood Short List
This is where we dig in and look at your list of must-haves and your list of want-to-haves, see what the best fit is in terms of locations, and start to understand the compromises that will have to be made.
Learning the Market
Actually getting out there and smelling the roses: getting into houses, looking around neighborhoods, studying submarkets, and getting educated.
Offers
Once we find the right house, you put in an offer, and we negotiate it to try and get you the best balance of terms that works for you and is acceptable to the seller.
The Road to Settlement
Once your offer is accepted, there are all kinds of things that need to happen to get across the finish line. I use my roadmap to settlement to help you understand what all the steps are and have a clear vision of how you'll get to the settlement table.
What first-time buyers get wrong
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
Before you tour a single home, let us do the numbers. Book a call and we will start there, education first, no pressure.
