Montgomery County First-Time Homebuyer Program: Eligibility and How to Apply

What is the Montgomery County First-Time Homebuyers Program?

The Montgomery County First-Time Homebuyers (FTHB) Program, administered by the county's Office of Housing and Community Development, helps low-, moderate-, and median-income households purchase a home in Montgomery County, PA. Funding comes from the County's Affordable Housing Trust Fund.

How much assistance is available?

Eligible buyers can receive up to 10% of the sales price, not to exceed $10,000, applied to down payment and closing costs. The assistance is a 0% interest, deferred-payment second mortgage — there are no monthly payments, and it is repaid only if the home is sold, refinanced, rented, or transferred.

Who is eligible?

• First-time homebuyers (generally no home ownership in the last 3 years)
• Household income within county limits for low, moderate, or median income tiers, adjusted for household size
• The home must be in Montgomery County and used as your primary residence
• You must qualify for a first mortgage from a lender

How to apply

1. Complete and submit the FTHB Program application to the county.
2. Within about two weeks, approved applicants are referred to a housing counseling session.
3. Complete one-on-one counseling covering budget, credit, mortgage financing, and homeownership responsibilities, and receive your counseling certification.
4. Notify your mortgage lender and realtor of your grant approval.
5. Your realtor sends the Agreement of Sale to the program for approval.
6. Submit a formal mortgage application and schedule a home inspection (Housing Quality Standards form).
7. Attend closing — the county brings its documents and the assistance check.

Tips for a smooth application

Start counseling early, before you sign an agreement of sale, and gather pay stubs, tax returns, and bank statements in advance. A mortgage professional familiar with the program can help you structure your loan so the assistance layers correctly with your first mortgage.

Program amounts and income limits change periodically. Contact the Montgomery County Office of Housing and Community Development at 610-278-3540 for current guidelines. This article is for general information and is not a commitment to lend.