Unlocking Homeownership with HOC's Mortgage Purchase Program (MPP)

Unlocking Homeownership with HOC's Mortgage Purchase Program (MPP)

In the realm of personal finance, few milestones rival the significance of purchasing a home. It's a monumental decision, one that carries profound financial implications for individuals and families alike. Recognizing the importance of this endeavor, the Housing Opportunities Commission (HOC) has dedicated itself to empowering first-time homebuyers with the knowledge and resources necessary to make informed and responsible financial choices as they embark on the path to homeownership.

Understanding the Mortgage Purchase Program (MPP)

At the heart of the Housing Opportunities Commission's mission lies the Mortgage Purchase Program (MPP). This invaluable initiative serves as a guiding light for prospective homeowners, offering them a wealth of information and support. Here, we delve into the key aspects of the MPP, shedding light on how it can be your compass towards acquiring your dream home.

Defining First-Time Homebuyers

The cornerstone of the MPP is the stipulation that each adult occupant of the property must be a first-time homebuyer. But what exactly does this mean? According to the HOC, a first-time homebuyer is an individual who has not held any ownership interest in their primary residence within the past three years. This criterion opens the door to countless individuals aspiring to own their first home.

The Power of Choice

It's important to note that the HOC does not provide homes for purchase; instead, buyers are tasked with locating their own dream home. This emphasis on choice ensures that you have the freedom to select a property that truly suits your preferences and needs.

Direct Application to Lenders

When it comes to securing financing for your home purchase, borrowers are encouraged to apply directly to the HOC participating lender of their choice, rather than applying to the HOC itself. This streamlines the process and allows you to work with a lender that aligns with your financial goals and preferences.

No Waiting List

Unlike many other housing programs, the MPP boasts a significant advantage - there is no waiting list. This means that once you meet the eligibility criteria, you can move forward with your homebuying journey without delay.

Geographic Flexibility

Another standout feature of the MPP is its geographic flexibility. Borrowers are not required to be current residents of Montgomery County, nor do they need to be employed in the county to utilize the program's benefits. This inclusivity extends opportunities to a wide range of individuals.

Inclusivity Beyond Citizenship

The MPP breaks down barriers further by not imposing U.S. citizenship as a requirement. This open approach ensures that individuals from diverse backgrounds can access the program's resources.

Home Inspection for Resale Properties

For those interested in purchasing previously occupied properties, the MPP mandates a home inspection. This step is essential to ensure the safety and quality of your potential new home.

First-Time Homebuyer Education

Education is key to making informed decisions. To participate in the MPP, at least one borrower in the household must complete a first-time homebuyer education class. This knowledge equips you with the tools needed to navigate the complex world of real estate.

Income and Property Limits

To maintain fairness and accessibility, the MPP has established income and property limits. Your household income cannot exceed HOC's maximum income limits, and the sales price of the property must not surpass the maximum limit set by the program. These safeguards are in place to benefit as many individuals as possible.

Montgomery County Focus

It's important to note that the MPP exclusively covers Montgomery County properties. Eligible Property/MPDU (Moderately Priced Dwelling Unit) listings are the focus of this program.

In-Person Settlement

For a seamless transition into homeownership, at least one borrower must attend settlement in person. This ensures that all necessary paperwork is handled efficiently.

Power of Attorney Consideration

Should the need arise for a power of attorney in your homebuying process, it must be approved by HOC prior to settlement, underscoring the program's commitment to legal and ethical standards.

Credit Score Requirements

Your credit score is a critical factor in securing financing. Each borrower must have a credit score no lower than 640, providing a tangible benchmark for financial readiness.

Documenting Financial History

To assess your financial stability, borrowers are required to provide the lender with a signed copy of their complete federal income tax returns for the past three years, or provide a valid reason for not having to file. This step ensures that borrowers can comfortably manage their homeownership responsibilities.

No Resale Restrictions

Unlike some programs, the MPP does not impose resale restrictions on properties. This means you have the flexibility to make choices that align with your long-term goals.

Freedom to Pay Off Loans

Financial freedom is a cherished asset. MPP loans may be paid off at any time without penalty, allowing you to seize opportunities for financial growth when they arise.

Rental Limitations

Finally, it's important to be aware that the buyer is not permitted to rent back from the seller for more than 30 days after the purchase, ensuring a smooth transition for all parties involved.

Frequently Asked Questions (FAQ)

1. Who qualifies as a first-time homebuyer?

A first-time homebuyer is defined as an individual who has not had any ownership interest in their primary residence anywhere during the last three years.

2. Does the HOC provide homes for purchase?

No, the HOC does not provide homes for purchase. Buyers are responsible for locating their own homes.

3. How do I apply for financing through the MPP?

Borrowers are encouraged to apply directly to the HOC participating lender of their choice, not to the HOC itself.

4. Is there a waiting list for the MPP?

No, there is no waiting list for the MPP. Once you meet the eligibility criteria, you can proceed with your homebuying journey.

5. Do I need to be a resident of Montgomery County to use the MPP?

No, residency in Montgomery County is not a requirement to access the benefits of the MPP.


In the journey towards homeownership, knowledge is your most potent weapon. The Housing Opportunities Commission's

Thinking about making a move? Contact us at 301-835-1519 or by filling out the form below, and Start Packing!

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