MPDU - Frequently Asked Questions (FAQ's)

Any person or household who meets the minimum program requirements may apply for the MPDU program:

• You must be a first-time homebuyer;
• Your income must not exceed the maximum income limits;
• You must have a good credit history to obtain a mortgage for your MPDU;
• You must document that you can afford the mortgage loan amount and utilities; and,
• You do not have to be a resident of Montgomery County, but preference is given in the application process to people who live and/or work in Montgomery County.

At a minimum, you must earn at least $40,000 and be able to qualify for a mortgage loan of at least $150,000 and have savings for a down payment and closing costs. The amount of money that you can borrow to buy a home will depend on several factors, including your credit history, your savings, job stability, etc. The maximum income limits change annually, usually in April. For current income limits, go to the MPDU Purchase Applicant's website.

Under the MPDU program, a “first-time homebuyer” is someone who has either never previously owned a home, or who has not owned a home or been on the deed to a home in the past five years. Even if the home you owned was in another state or country, you are not eligible to participate in the MPDU homeownership program.

If your spouse previously owned a home, you are not eligible to participate in the homeownership program, because your spouse must be listed on the deed as a co-owner. Both of you must be first-time homebuyers.

No. Private developers are required by Montgomery County law to provide a certain number of affordable units within most developments. Neither Montgomery County nor the developer provides any subsidy to renters or buyers.

No. In order to afford a home under this program, a household must earn at least $40,000 in a year to qualify to purchase an MPDU. The maximum income limits change annually, usually in the spring. For current income limits, go to the MPDU Purchase Applicant's website. 

No. HOC (the Housing Opportunities Commission) is an agency not directly related to the MPDU program. HOC mainly works with lower income households. HOC may also provide financing for the purchase of homes, including MPDUs. The MPDU program is a County-run program that assists households deemed to be of “moderate income” in the purchase of properties located throughout Montgomery County.

It is true that households with incomes lower than shown above might not be able to afford to purchase a home under the MPDU program. Another option is the MPDU Rental Program (see For Existing MPDU Renters or Persons Seeking to Rent an MPDU, below). An additional housing resource for households with lower incomes is the Housing Opportunities Commission (HOC); they can be reached at (240) 627-9400 or at www.hocmc.org.

The MPDU program is not an emergency housing program. Persons seeking emergency housing should call the Montgomery County Crisis Center at (240) 777-4000.

You need to take the following online classes that are offered throughout the year: Effective February 01, 2023, the order of the classes has changed.  The new order is as follows: 

1. An online Orientation Seminar
2. An online First-Time Homebuyer Class
3. An online self-administered Application Tutorial 

Please visit the MPDU Purchase Applicant’s website, refer to the subtopic “Take Required Training Then Apply” for more information about the online MPDU classes. 

Please visit the MPDU Purchase Applicant’s website, refer to the subtopic “Take Required Training Then Apply” and follow the instructions for each of the MPDU online classes. 

 

All MPDU classes are held online over the Zoom platform. Therefore, there is no limit on the number of attendees. However, at least one adult household member must register for the MPDU classes. This same person should be the one registering for all classes. It is recommended that the primary applicant is the one that registers for all the classes. The applicant must have a valid e-mail address and this e-mail cannot be used by other household members to register for MPDU classes separately.

 

 

Hearing-impaired individuals who need accommodations must call 311 or (240) 777-0311 at least two weeks prior to the seminar they wish to attend and ask to speak to an MPDU staff.

Effective February 01, 2023, the order of the classes has changed. If you have never taken a First- Time Homebuyer class before, the MPDU Orientation Seminar is the first class to take, then you would take the First-Time Homebuyer next. Please visit the MPDU Purchase Applicant’s website, refer to the subtopic “Take Required Training Then Apply” for more information about the online MPDU classes. 

 

Effective February 01, 2023, the order of the classes has changed. The First-Time Homebuyer class will be the class required after the MPDU Orientation Seminar. However, if you have taken a First-Time Homebuyer class within the last two years, you may take the Orientation Seminar next. The MPDU program will accept a certificate of completion from the following agencies: Housing & Community Initiatives, Inc., Housing Initiatives Partnership, Inc., Latino Economic Development and or a class conducted by a nonprofit housing counseling agency certified by the U. S. Department of Housing and Urban Development (HUD) as long as it is valid within the past 2 years.  

Effective February 01, 2023, the order of the classes has changed. New applicants who have never taken any MPDU classes before; must take the Orientation Seminar class first, then take the First-Time Homebuyer class next. However, if you have taken an Orientation Seminar class within the last two years; you do not need to re-take this class and you may proceed with the last step in the MPDU application process, which is to take an online self-administered Application Tutorial. Please visit the MPDU Purchase Applicant’s website, refer to the subtopic “Take Required Training Then Apply” for more information about the online MPDU classes. 

Information about the required documents to apply to the MPDU program is available in our website. Click here to be directed to the MPDU Application Checklist. 

Yes, you may apply for an MPDU certificate to purchase if you are renting an MPDU. You will need to follow the same application procedure as everyone else. It is important to note that the length of time you have rented an MPDU does not count towards the length of time you have been in the program for the purpose of purchasing an MPDU.

No, but your credit history will be reviewed by the lender to verify whether you would qualify for a mortgage loan of at least $150,000. If you qualify, the lender will give you a prequalification letter to include with your application.

The MPDU program transitioned to online services on November 09, 2020, and keeps digital documents of submitted applications after this date. If you were granted an MPDU Certificate of Eligibility you may renew the certificate. However, if 90 days have passed since the certificate’s expiration date, you will need to start the MPDU application process. This means you must re-take any MPDU classes that have not been taken within the last two years. If you need to talk all MPDU classes again, you will need to follow the new order of classes provided above.

Buyers of an MPDU must be able to pay a monthly mortgage payment. If you are not employed, you likely will not qualify for a mortgage. However, your source of income may be from retirement benefits, which may enable you to qualify for a mortgage (subject to the MPDU income maximums).

If you are self-employed, you must submit a copy of Schedule C from your federal income tax return, and a year-to-date income and expense statement prepared by either you or your accountant. The statement must be notarized, and you must include this statement with your signature: “Under the penalty of perjury, by signing this statement I acknowledge that the information presented herein is a true and accurate accounting of my income and expenses.”

Yes, incomplete applications will not be processed. You must contact the IRS to request a summary 
statement of your previously filed tax return. Obtain all tax-related transcripts at no cost from the IRS at  https://www.irs.gov/individuals/get-transcript or call 1 (800) 908-9946.

Probably not; we use pay stubs to determine your current income. Your tax return is used to verify other information on your application.

Yes. We need verification of your separation or divorce either a separation agreement, divorce 
agreement, a letter from your attorney verifying that you are seeking a separation, and/or evidence of separate residences.

You can have your employer verify your annual income and year-to-date earnings on company letterhead or ask your employer to complete an Income Verification Form (available here).

No, the MPDU Program does not provide financing to purchase MPDUs. Purchasers must obtain their own financing. The Housing Opportunities Commission (HOC) has special mortgage programs available through their lenders – you can ask the lender about the HOC mortgage and closing cost programs. A list of these lenders is on HOC’s website: www.hocmc.org/homeownership. However, you may obtain your loan from any lender you choose.

The MPDU program does not have any restrictions on how the MPDU can be financed or on how much money the MPDU buyer can be given by family members. The MPDU buyer should check with their lender to see if the lender has any limits or restrictions on gifts. The gift donor cannot be on the deed.

Business Hours for the Moderately Priced Dwelling Unit (MPDU) Program are 8:30 AM to 5:00 PM Monday through Friday.  Drop-ins are discouraged.  The individual staff member who is best able to answer your question might not be available for unplanned in-person visits. To reach MPDU staff for a matter that is time sensitive or if you need to address a specific situation where the answer cannot be found on the MPDU website, you can request to speak to MPDU staff by calling 311 or (240) 777-0311 stating the issue or specific question(s). You can also request to schedule an in-person meeting through 311. However, most of the information you need can be found on this website:  www.montgomerycountymd.gov/mpdu.

You can call 311 and if an operator is not able to answer your question, the operator will create a service request for a return call, and you will be called by an MPDU staff person within 2 to 3 business days.

There are several agencies in Montgomery County that conduct a First-Time Homebuyer class: 1) Housing & Community Initiatives, Inc., 2) Housing Initiative Partnership, Inc., 3) Latino Economic Development Center. You must contact them directly at the number listed on their website. If you took this class through another agency, please review your personal emails to find your past registration.  The MPDU office will not have records that you attended this class.

If you need a replacement for your MPDU certificate, please send an email to [email protected]. Please provide your name and your certificate number. If you do not have your certificate number, please provide your phone number and email address and the reason you are requesting a replacement.

Check that your MPDU certificate is valid. Check that your approved loan amount is equal to or larger than the price of the MPDU for sale. Check that your household size qualifies you for the number of persons required or allowed in this RSD.

No, the builder contacts certificate holders directly. After the Random Selection Drawing is held, the MPDU Office sends the results of the Random Selection Drawing containing the contact information for the selected households to the builder. The builder will typically call the first households on the list within 3 weeks of receiving the list. Please also be aware that the builder will only call the number of households equal to the number of MPDUs available.

Occasionally. When an MPDU resale that has been offered to all MPDU certificate holders is not purchased by one of them, the MPDU resale is opened to the general public, and a person without a certificate may buy it. The buyer must be a first-time homebuyer and must attend a meeting with MPDU staff to review the MPDU rules before signing a purchase contract for the MPDU. The seller’s listing agent will refer the buyer to the MPDU office.

Resale MPDUs that are opened to the general public will be listed in the Multiple Listing Service (MLS). A buyer’s real estate agent can assist interested buyers in finding listings in the MLS.

Yes, you will be responsible for any monthly fees assigned to your MPDU. The MPDU office does not get involved in disputes due to fees that may occur between you and your Homeownership Association (HOA) or Condominium Association. DHCA’s Office of Common Ownership Communities (OCOC) can assist with these types of disputes.

Only townhouses and condominiums are generally available.

MPDUs for sale are almost always one-, two-, or three-bedrooms. Four-bedroom MPDUs are only 
available very infrequently.

New and resale three-bedroom townhouses and condos are available to households with three or more persons first. One- and two-person households that enter a drawing for a three-bedroom MPDU will be disqualified. New MPDU townhouses are in strong demand. However, if no three-bedroom households who entered a drawing for a resale townhouse want to purchase the townhouse, the real estate agent will contact smaller households that entered the drawing and were disqualified initially. This is more likely to happen with a resale piggyback townhouse (a four-story townhouse that contains two two-story living units, one on top of the other).

When MPDUs are available for sale in a new development, or when resale MPDUs become available, the MPDU office holds a Random Selection Drawing to select certificate holders who will be provided the opportunity to purchase the MPDUs. You should check the MPDU website regularly to find out which MPDUs are available for sale and when drawings will be held. If you are interested in purchasing one of the MPDUs that are available in a new development, you must enter the online drawing for those MPDUs. You must provide your MPDU certificate number (the number on your MPDU certificate) in order to enter a drawing. If you are eligible to buy one of the MPDUs based on the Random Selection Drawing process, you will be entered in the drawing. If you are not eligible, your entry will be rejected when the drawing is held. The drawing will take place approximately two to three weeks after the information is posted on the MPDU website. Please visit the MPDU Purchase Applicant’s website, refer to the subtopic "View MPDU Properties and Participate in Random Selection Drawings" for more information. 

MPDU certificate holders are required to use their certificate number to participate in the Random Selection Drawings. For MPDU units that are for Resale, an Offering Code Number is required. To obtain an Offering Code House Number click on the development name of the house you are interested in to see MPDU property's detail page. The name and contact information of the realtor is available there. Pre-pandemic, open houses were a requirement of the MPDU Program, however this practice is no longer required. In order to receive the Offering Code, you must contact the realtor and provide your name, MPDU certificate number Lender name and pre-approval amount. The realtor will give you the offering code number to enter in the Random Selection Drawing (RSD). After the RSD is held, the listing agent will call the first selected buyer on the RSD list, invite him to visit the MPDU, and discuss the contract.  If the buyer is not interested, the agent will go to the second buyer, and so on, until he gets a contract.    

You will need to request a waiver of the First-Time Homebuyer requirement from the MPDU office due to divorce. Please send an email to [email protected]. Please provide your name and your certificate number. You will need to present documentation showing that your ex-spouse will be keeping the house.

The MPDU classes are valid for only two years. If you have not applied within two years of taking any of these classes, you must retake those classes before you apply to the program.

If you were not able to renew your MPDU certificate, and your certificate expired more than 90 days  ago, you will need to re-start the MPDU application process. The MPDU classes are valid for only two  years. This means you will need to re-take the First-Time Homebuyer and the Orientation Seminar  online classes if you did not take them within the past two years. Additionally, any points that were  awarded when your certificate was still valid will be lost.

There is no established schedule. Drawings are held when builders notify us of the availability of MPDUs in any new subdivision or building. Drawings are also held to make resale MPDUs available to certificate holders.

All drawings for both new and resale MPDUs are online. Information about sales and resales can be found on the MPDU Homeowner's webpage at www.montgomerycountymd.gov/mpdu.

No. You will need to check the MPDU website approximately once a week for new drawings.

It could be because she has been assigned more points based on living or working in Montgomery County, or it could be just that her number randomly came out in a higher position.

No, the selling agent will contact certificate holders directly. After the Random Selection Drawing is held, the MPDU Office sends the results of the Random Selection Drawing containing the contact information for the selected households to the selling agent. The selling agent will typically call the first households on the list within 3 weeks of receiving the list. Please also be aware that the selling agent will only call the number of households equal to the number of MPDUs available.

Unit size, in terms of the number of bedrooms a unit has, is determined by the size and composition of your household (refer to the chart below).

Household Size and Number of Bedrooms for Rental MPDUs

Household Size	Number of Bedrooms
1 person	1 bedroom
2 people	1 or 2 bedrooms
3 people	2 or 3 bedrooms
4 people	2 or 3 bedrooms
5+ people	3 bedrooms

Yes, because the MPDU program is not subsidized, other forms of rental assistance offered by the Housing Opportunities Commission and Montgomery County may be used to help you pay the MPDU rent.

The MPDU program does not have any restrictions on the source of an MPDU renter's security deposit. The MPDU renter should check directly with the apartment complex's leasing office in case they have any limits or restrictions on gifts.

Yes.

No. The MPDU regulations do not permit an MPDU renter to be charged an amenities fee; however, a security deposit can be required for an MPDU renter.

In order to rent an MPDU, go directly to the rental complex where you would like to rent an apartment. For a list of rental complexes with MPDUs, go to the MPDU Rental Program website. The latest MPDU rental income limits can also be found on the MPDU Program website. The MPDU office does not issue certificates to rent.