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