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Eligible Property/MPDU

  • 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:
  • You will have to contact the City of Gaithersburg or the City of Rockville directly for information about their program.