See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026
Homebuyer Programs in Gaithersburg, MD (2026)
Gaithersburg is an incorporated city in Montgomery County, Maryland, located about 25 miles northwest of Washington, D.C., with a median home price around $510,000. Homebuyers here benefit from an unusually deep stack of assistance programs at both the city and county level. The Gaithersburg Homebuyer Assistance Loan Program (GHALP) provides up to $40,000 as a zero-interest deferred loan, and the Montgomery Homeownership Program adds up to $25,000 more. The MEDPAL program offers $25,000 specifically for Montgomery County employees. Combined with Maryland state programs like the 1st Time Advantage and Flex Loan, eligible Gaithersburg buyers could stack $40,000 to $65,000 or more in total down payment and closing cost assistance.
City Programs in Gaithersburg
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Gaithersburg Homebuyer Assistance Loan Program (GHALP) | Deferred Loan | Up to $40,000 | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $40,000
- First-time only:
- Yes
County Programs in Montgomery County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| HOC Revolving Closing Cost Assistance Program (RCCAP) | Zero-Interest Loan | 5% of the sales price, up to $10,000 | Yes | View → |
| Montgomery County Homeownership Assistance Fund (McHAF) | Deferred Loan | Up to $25,000 | Yes | View → |
| Montgomery County MPDU Homeownership Program | Deferred Loan | Below-market purchase price on regulated housing units | Yes | View → |
| Montgomery Employee Down Payment Assistance Loan (MEDPAL) | Deferred Loan | $25,000 | Yes | View → |
| Montgomery Homeownership Program | Deferred Loan | Up to $25,000 (40% of qualifying borrower income, maximum $25,000) | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- 5% of the sales price, up to $10,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $25,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Below-market purchase price on regulated housing units
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- $25,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $25,000 (40% of qualifying borrower income, maximum $25,000)
- First-time only:
- Yes
State Programs in Maryland
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Grant | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Maryland HomeAbility | Deferred Loan | 0% deferred second loan of up to 25% of the purchase price, capped at $45,000, for down payment and closing costs; first and second loans combined may not exceed 105% of the purchase price | Yes | View → |
| Maryland Mortgage Program - 1st Time Advantage | Deferred Loan | Up to $6,000 or 3%-5% of the first mortgage amount | Yes | View → |
| Maryland Mortgage Program - Flex Loan | Deferred Loan | Up to $6,000 | No | View → |
| Maryland SmartBuy 3.0 | Forgivable Loan | Up to 15% of the purchase price or $20,000, whichever is less | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- 0% deferred second loan of up to 25% of the purchase price, capped at $45,000, for down payment and closing costs; first and second loans combined may not exceed 105% of the purchase price
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $6,000 or 3%-5% of the first mortgage amount
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $6,000
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 15% of the purchase price or $20,000, whichever is less
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Metro Maryland Homeownership Program | Zero-Interest Loan | Affordable mortgage with zero-interest terms | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with zero-interest terms
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The Gaithersburg GHALP requires household income at or below 100% of Area Median Income (120% AMI for priority populations including K-12 school employees, City of Gaithersburg employees, police, fire safety, and veterans). You must be a first-time homebuyer and must have lived or worked in Gaithersburg for at least 1 year (waived for priority populations).
Step 2: Submit the GHALP pre-application. Fill out the DPA Pre-Application form (available in English and Spanish) and email it to housing@gaithersburgmd.gov. City staff will review your eligibility and respond with next steps.
Step 3: Complete homebuyer education. If you pre-qualify, you must complete a HUD-approved first-time homebuyer counseling class. Housing Initiative Partnership (HIP) offers classes locally in Gaithersburg and Germantown. Contact HIP at 301-916-5946 to register.
Step 4: Contact the Housing Opportunities Commission (HOC). Call HOC at 240-627-9400 to explore additional Montgomery County programs like the Montgomery Homeownership Program (up to $25,000) and RCCAP (up to $10,000 for closing costs). County programs can be stacked with the city GHALP.
Step 5: Get pre-approved with an MMP-approved lender. The GHALP requires a Maryland Mortgage Program approved lender as of July 2025. Your lender can help you combine city, county, and state assistance for maximum benefit.
Step 6: Find a home within the City of Gaithersburg corporate limits. The GHALP only applies to homes within Gaithersburg city limits. Confirm the address is within city boundaries before making an offer.
Step 7: Submit your applications and close. Your lender coordinates the GHALP application alongside county and state DPA programs. The GHALP is secured as a zero-interest second deed of trust with deferred repayment.
Frequently Asked Questions
How much down payment assistance can I get in Gaithersburg?+−
Do I have to be a first-time homebuyer to qualify?+−
Do I have to live or work in Gaithersburg to qualify for the GHALP?+−
What homebuyer education is required?+−
Can I combine the Gaithersburg GHALP with Montgomery County programs?+−
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