For Lenders | Special Programs for HOC Residents | HOC Existing Loan Customers
MODERATLEY PRICED DWELLING UNITS (MPDUs)
- The property must be in Montgomery County.
- HOC will make a mortgage loan on a new or existing property.
- The property may be a market priced (uncontrolled) property or a moderately priced dwelling unit (MPDU). (see MPDU below)
- The sales price of the property cannot exceed HOC’s maximum sales price limit.
- The purpose of the property must be for use as the borrower’s primary residence. No more than 15% of the property may be used in a trade or business.
- The lender will have the property appraised to determine that its value supports the mortgage. The mortgage is based on the lower of the sales price or appraised value.
- For FHA insured mortgages on condominiums, the condominium must have FHA approval.
- Co-ops are not eligible for HOC financing.
- MPDUs are properties sold at below market value and have a controlled sales price (controlled appreciation) for a certain period of time.
- There are Montgomery County MPDUs, City of Rockville MPDUs, and City of Gaithersburg MPDUs. Each jurisdiction establishes its own rules and regulations and administers its own program.
- HOC does not determine or enforce the rules of any MPDU program.
- Rules concerning MPDUs exist independently of the mortgage on the property.
- To participate in the county’s MPDU program, one must receive a certificate of eligibility from the county.
- The website for county MPDUs is: Montgomerycountymd.gov/APPS/DHCA
- You will have to contact the City of Gaithersburg or the City of Rockville directly for information about their program.