The City’s Emergency Rental and Utility Assistance Program, Downpayment Assistance Program (DPA), and Homeowner Repair and Upgrade Program are funded by the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG). Pursuant to 8 U.S.C. § 1611(a), only individuals lawfully present in the United States are eligible for any Federal public benefit such as the City’s CDBG-funded programs. As such, the City is required to verify the lawful presence of all applicants for the CDBG-funded programs with the United States Citizenship and Immigration Service (USCIS) through the Systematic Alien Verification and Eligibility (SAVE) system.

To apply for any of the City’s CDBG-funded programs, you must provide one of the approved documents that verifies you are lawfully present in the U.S. After receipt of this information, City staff will verify your legal residency status through the SAVE system.

If you have any questions about this eligibility requirement, please contact housing@gaithersburgmd.gov.

The Gaithersburg DPA program provides closing cost and down payment assistance to eligible first-time homebuyers who purchase within the City of Gaithersburg corporate limits.

The City announces new changes to its Gaithersburg Downpayment Assistance program (Gaithersburg DPA). The program now allows borrowers to access up to $40,000 in down payment and closing cost assistance. These loans remain 0% deferred and are available to eligible first-time homebuyers purchasing within the City of Gaithersburg corporate limits.

In addition to the increased loan amounts, the City now requires all applicants to work with a Maryland Mortgage Program approved lender.

Eligibility Requirements:

  • Property must be within Gaithersburg city limits*

  • Must be a first-time homebuyer
    (Defined as someone who has never owned a home OR has not owned a home for at least three (3) years prior to the date of settlement. The buyer must occupy the purchased unit as their only residential property.)

  • Credit score of 620 or higher

  • Income must be at or below 120% of Area Median Income (AMI)

*Not all residences with a Gaithersburg address are within the corporate limits of the City of Gaithersburg. Check here to verify if the property is within City limits.

Income Maximums* by Household Size

Household Size 1 Person 2 3 4
80%
 $74,800 $85,450
 $96,150
 $106,800
100%
 $116,270 $132,880
 $149,490
  $166,100
 120% $139,524 $159,456 $179,388  $199,320

 

Household Size 5 6  7   8
80% $115,350
  $123,900 $132,450
 $141,000
100%
 $179,388
  $192,676 $205,964
 $219,252
 120% $215,266  $231,211 $247,157 $263,102

*Incomes are updated annually.

Loan Amount Details:

Funding maximums are established according to the household income:

HH Income
 81% - 120% AMI Up to 80% AMI
Resident Up to $25,000 Up to $40,000


These funds are available as a 0% deferred loan. The buyer will be required to sign a promissory note and second deed of trust at settlement.

Priority Population:

Applicants considered a “Priority Population” will be prioritized when multiple applications are submitted.

Priority Populations include:

  • K–12 Montgomery County public and private school* employees
  •  City of Gaithersburg full-time or permanent part-time employees
  • Police officers
  • Fire safety employees
  • Veterans

*Private schools must be licensed in Montgomery County by the State of Maryland for their employees to be considered part of the Priority Population.

How to Apply for Down Payment Assistance (DPA):

Step 1: Complete the Pre-Application
Step 2: Review Program Rules & Choose an Approved Lender
Step 3: Complete Required Homebuyer Education
Step 4: Get Mortgage Approval & Find a Home
Step 5: Loan Approval & Closing