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Closing Cost Assistance

HOC offers downpayment and/or closing cost assistance which can be combined with the HOC first mortgage in the MPP. The assistance can be used only to pay for various closing fees or the downpayment. This assistance cannot be used to pay off creditors.

1. Revolving Closing Cost Assistance Program (RCCAP) “5 for 5”

  • This program provides 5% of the sales price up to $10,000 as a second mortgage which can be used for downpayment and/or closing costs.
  • The loan is repaid in regular monthly payments over a 10 year term at an interest rate of 5%.
  • The RCCAP must be used with an HOC first mortgage (with one exception – HK4E).
  • The RCCAP may be combined with other FHA approved closing cost assistance, provided the borrower can qualify.
  • At least one borrower must be working IN Montgomery County to be eligible for the RCCAP. This means the regular place of daily work is located in the county.

2. House Keys 4 Employees (HK4E)

  • This program is available only to Montgomery County Government employees. (see list of agencies regarded as county government).
  • The county employee applies directly to the HOC/CDA participating lenders for this program.
  • HK4E is a state program which provides added closing cost assistance when an employer offers closing cost assistance to its employees.
  • The County Government’s assistance is the Revolving Closing Cost Assistance Program (RCCAP).
  • The first mortgage must be through the Maryland CDA mortgage program. See the state’s web page, for more information about this program. A lender who is approved by both HOC and CDA must originate the first mortgage. See Participating lenders.
  • The property must be in Montgomery County.
3. Option 2 of the MPP
  • This option provides the first mortgage plus 3% of the sales price of the property which can be used for downpayment or closing costs.
  • Funds for the 3% closing cost assistance are provided as a deferred loan (second mortgage) with a 0% interest rate.
  • No monthly payments are required.
  • If the property is sold or the first mortgage is paid off during the first five years, the borrower will have to repay a pro rata portion of the downpayment assistance to HOC.
  • This loan option may be combined with other FHA approved closing cost assistance, provided the borrower qualifies.