Homebuyer Assistance Loan Program

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The Gaithersburg Homebuyer Assistance Loan Program (GHALP) provides closing cost and down payment assistance to eligible first-time homebuyers who purchase within the City of Gaithersburg corporate limits.

Effective July 1, 2019, the City is making a change to its closing cost and down payment assistance program.  An applicant must have lived or worked in the City of Gaithersburg for at least one year prior to date of application.  This restriction does not apply to Priority Populations: K-12 public and private school employees, police officers, fire safety employees or to veterans.   An applicant in one of those priority categories can receive assistance without being a City resident or employed within the City limits. 

Funding maximums are established according to property location:


Standard Zone (Purple) Opportunity Zone (Green)
Resident Up to $12,000 Up to $25,000

Funding amount cannot exceed 10% of the sales price. Not all residences with a Gaithersburg address are within the corporate limits of the City of Gaithersburg. Please click here to see if the residence falls within the City limits, and the amount of assistance for which the property is eligible.

These funds are available in a 0% deferred loan. The buyer will be required to sign a promissory note and second deed of trust at settlement. Please see the program synopsis for more information.

Homebuyers wishing to use these funds must use a City of Gaithersburg approved lender. Homebuyers must also complete first-time homebuyers counseling. Please choose from one of the following education providers:

To ensure confidentiality and to protect the privacy of residents and applicants, the City requests that all required documentation pertaining to GHALP loans be uploaded to a secure folder. This folder is available only to authorized City employees. Examples of documents that should be uploaded include applications, copies of paystubs, tax returns, and other documents verifying income. Staff will be alerted once the documents have been uploaded, and the City will notify the applicant by email that the documents have been received and will be reviewed in a timely manner. This link should be used by lenders, applicants, and real estate agents. Please use the following naming convention when uploading documents:
GHALP_LastName_PropertyAddress.pdf

housingfiles.gaithersburgmd.gov (Password: “housing”).

Although this is the preferred method of receiving applications, applicants can continue to fax, mail or drop documents off at City Hall (marked as “CONFIDENTIAL”). Lenders and other housing professionals are required to use this link. This is a new security procedure, so please contact Housing Services with any questions.

The list of approved lenders can be found in the Related Documents section.

Please contact Housing Services for more details.

Income Maximums by Household Size

1 Person 2 Person 3 Person 4 Person 5 Person
$85,000 $97,050 $109,200 $121,300 $131,010

Lenders interested in participating in the GHALP program must complete the lender application.