MPDU Purchase Applicants

MPDU purchasers buy a home in Montgomery County at a much more affordable price, compared with homes priced at market rates.  By purchasing an MPDU home with a standard 30-year fixed rate mortgage, the MPDU owner’s monthly mortgage payment will not increase each year (unlike rent, which typically increases annually). 

MPDU owners can itemize mortgage interest and real estate taxes on their income tax form. Property taxes are based on the MPDU value of the home, not "market value." MPDU owners can make improvements to their home.  (Only certain improvements can be credited toward the resale price of an MPDU.) 

“First Time Homebuyer” To participate in the MPDU purchase program, an applicant and all the members of their household must not currently own a home and, must not have owned a home anywhere in the past five (5) years.  

Household income within a certain range: Income is defined as gross income (before taxes) received annually from all sources by all wage earners in a household.  Sources of income include (but are not limited to): wages and salary, overtime pay, child support, alimony, interest income from savings and checking accounts, dividends from stocks and bonds, and interest from certificates of deposit, Social Security benefits, Veterans Administration benefits, unemployment insurance benefits, bonus payments, pension and retirement payments, long-term disability benefits, and any other annuities or stipends received. The maximum income numbers change annually, usually in April, and are based on household size. 

• Minimum annual household income: $40,000 
• Maximum annual household income: See the table (effective April 5, 2024)

Qualify for Financing.  Applicants for the MPDU purchase program must provide a mortgage pre-qualification letter for at least $150,000. The MPDU Program does not provide financing. The MPDU program does not have any restrictions on how the MPDU can be financed or how much money the MPDU buyer can be given by family members.  The MPDU buyer, however, should check with their lender to see if the lender has any limits or restrictions on gifts.  If a gift is provided, the donor may not be listed on the deed.

Demonstrate ability to pay: You must document that you can afford the mortgage loan amount, utilities and fees. 

Provide tax records: All adult wage earners in a household must be able to provide a copy of their U.S. Federal Tax Return for the most recent filing year. (If an adult wage earner did not file an IRS tax return, that person must provide verification of not filing a tax return and indicate why). 

Household size appropriate to size of unit: The MPDU program specifies the MPDU property size (number of bedrooms) that a household of a particular size is eligible to purchase;

Montgomery County preference: Regarding opportunity to purchase an MPDU, preference is given to people who live and/or work in Montgomery County. You do not need to live in Montgomery County to apply.  

Homes purchased through the MPDU Program, whether new or re-sale, have controls on them.  The control period is a set period of time beginning on the settlement date of the first sale of the MPDU. All new MPDUs (and some resale homes) have a 30-year control period; a very few resale homes have a 10-year control period. The controls are in the form of an MPDU restrictive covenant.   

• The owner must certify that they will occupy the unit as their primary residence during the control period.
• The owner must not refinance the property for more than the controlled resale price established by the MPDU office (owners are prohibited from refinancing the property based on the market value of the property).
• The owner can only sell their MPDU at the MPDU established controlled resale price and through the MPDU Program process.
• MPDU owners must not purchase another residential property anywhere.

After the control period expires : 

• It is strongly recommended that the MPDU owner(s) contact the MPDU office prior to any refinancing.  Refinancing does not relieve the owner of the obligation to make a shared profit payment to the County upon sale; therefore, it is important not to refinance for the full market value. The MPDU office can provide an estimate of the shared profit payment that would be owed to the County.
• When the MPDU is sold after the control period, the owner may sell the unit at a market price and work with the MPDU Office to pay 50% of the excess profit to Montgomery County. 

1. MPDU Orientation Seminar 
2. First-Time Homebuyer Class
3. Application Tutorial

A post-test will be given after each class. You must obtain a score of 80% or more to receive a course certificate of completion before proceeding to the next step.

• All MPDU classes are valid for two (2) years. If an applicant has not applied to the MPDU program within two (2) years of taking any of the classes, they must retake the class (es) that have expired. Attendees are advised to review their email accounts to maintain a record of the classes they have attended.
• It is required that the primary applicant(s) attend all MPDU classes, while the participation of other household members is encouraged. However, only one member of the household should register for all MPDU classes and must consistently use the same first name, last name, and email address. Any discrepancies in names or email addresses across classes will result in the household being ineligible to apply.
• The MPDU program has engaged The Greater Washington Urban League (GWUL) to provide the initial two classes: 1) the MPDU Orientation Seminar and 2) the First-Time Homebuyer class. Interested applicants should initiate communication with this agency.
  • GWUL will process the Intake forms and assess the class post-test results. Subsequently, this agency will relay a report of those attendees who successfully passed the post-test to the MPDU office within three to four weeks following each scheduled class.
• Attendees who obtain a (course certificate) record of completion for the first two classes (the Orientation Seminar and the First-Time Homebuyer class) will receive an email from the MPDU office containing instructions for creating an MPDU Application Portal account. Within this portal, they will be required to complete the third class, which is an online Application Tutorial.
• Upon successful completion of the three requisite classes, the applicant may submit their application form along with supporting documents via the MPDU Application Portal. If the applicant is deemed eligible, MPDU staff will issue an MPDU Certificate of Eligibility. This Certificate enables the Purchase Applicant to participate in a random selection drawing for any available MPDUs they wish to purchase.

MPDU Classes- Steps and Instructions

To register for the MPDU Orientation Seminar and the First Time Homebuyer class, potential  MPDU applicants must complete and submit a pre-screening intake form. The purpose of the form is to ensure that interested applicants meet the basic eligibility requirements and are prepared to purchase an MPDU before undertaking hours of training. It is crucial to utilize the same email address throughout the class registration and applying for the MPDU Program; any inconsistencies with the attendee’s name, last name, or email will delay the process of class validation, and you will not be able to apply. 
 

Orientation Seminars are offered virtually, last 2.5 hours, and are provided on the second and fourth Thursdays of the month in the evening.

Please complete this pre-screening intake form and mail it directly to the Greater Washington Urban League at MPDU@GWUL.org. When you complete this form select Orientation Seminar as the name of the class that you want to attend. 

Step 3.  Take the Application Tutorial (online):

Note: It is crucial that you only use one email address throughout the class registration; any inconsistencies with the attendee’s name, last name, or email will delay the process of class validation, and you won't be able to apply. If you have not received instructions for the Application Tutorial yet and more than 30 days have passed, please check your email records. It is more likely that you used different information during the class registrations. The MPDU office does not control how you register for classes- any corrections must be sent to GWUL via email at MPDU@GWUL.org.

The MPDU office only reviews applications successfully submitted. Applicants receive an email confirmation indicating the time frame on when their application will be reviewed. Applicants that have not taken the required training need to refer to the topic “Take Required Training and Then Apply."

The MPDU staff will review the required documents submitted with the application and verify that applicant has uploaded any additional supporting document that is applicable to their household. The following is a list that needs to be reviewed with a special attention to expedite the reviewing and approval of the certificate. (All documents should be uploaded to the MPDU confidential online Application portal as pdfs, jpgs, jpegs or pngs).

• Government issued Identification, such as driver’s license, state ID or passport for primary applicants.
• First-Time Homebuyer Class Certificate issued within the past two years. ( Sample)
• Mortgage pre-qualification letter with a pre-qualified amount of no less than $150,000 and issued within the last three months. ( Sample)
• Federal Tax Return: The most recently filed Federal Income Tax Return(s) (Forms 1040 and W-2) for every wage earner or IRS letter certifying no tax return was filed.  The preferred format for submitting a tax return document is PDF. However, if you are taking a picture; only upload page 1 and page 2 of your Federal Tax Return and each W-2 form. ( Sample)
  • Self -prepared taxes are not acceptable. Obtain a Tax Return Transcript and all other tax-related transcripts at no cost from the Internal Revenue Service (IRS) at https://www.irs.gov/individuals/get-transcript or call 800-908-9946. ( Sample)
  • If you are self-employed and filled out a 1040 with form(s) 1099 Miscellaneous, 1099 NEC or a Scheduled C- Profit and Loss, see samples of the document pages that must be provided.
• Proof of Income: Two (2) most recent pay stubs (or 4 pay stubs if paid weekly) for every wage earner in the household and from each current employment. ( Sample)
  • If unable to provide pay stubs because you have new employment or current employer does not supply with pay stubs, please print a Verification of Income form (PDF). Bank statements are not acceptable.
  • If self-employed, a notarized Year to Date Statement of Income and Expenses (this statement must be from current year starting from January to present); and a copy of Schedule C from your federal income tax return. ( Sample)
  • If retired, proof of pension income and/or social security income. ( Sample)
  • Proof of all other sources of income such as Social Security Income (SSI), Child support or Alimony. Provide statements from the agency issuing this income. Bank statements are not acceptable.
• Proof of Residence: If your current taxes do not show your current address, provide copy of any two of the following: current rental lease, utility bill, and or driver’s license showing new address.
• Other documents for special situations (only if applicable to your household):
  • Divorce or separation agreements (if applicable or if the most recent tax return was filed as “married”).
  • If you have a newborn child who was not listed on your recent tax return, provide a copy of the child’s birth certificate.
  • If you have an adult child or relative, such as a parent, that you are claiming on your taxes as your dependent, you must provide a Verification of Non-Filing Taxes (Form 4506-T) for each listed dependent. Obtain this form and all other tax-related transcripts at no cost from the Internal Revenue Service (IRS) at https://www.irs.gov/individuals/get-transcript or call 800-908-9946. ( Sample).

If a submitted application is not complete, the applicant will receive an e-mail indicating which documents were missing.  The applicant should then log into their portal and upload the missing documents.

Click here if you already have access to the MPDU Application Portal and received an email from the MPDU office requesting to upload additional documentation. Every time a document is uploaded, a message at the top of the page will indicate that the document is successfully uploaded. Please do not contact the office to verify whether the document has been uploaded.  

When everything is submitted correctly, the applicant will receive an e-mail indicating when their application will be reviewed. The MPDU department may take up to 30 days for this process. The reviewing time frame changes to 30 days or more if the application is not submitted correctly.
Please do not call if your application is less than 30 days outstanding or if you recently uploaded a missing document requested by the MPDU staff.  

If an applicant is deemed eligible after review of their application, staff will then issue an MPDU Certificate of Eligibility that enables the applicant to enter into a random selection drawing for any available MPDUs they wish to purchase. 

Receive Certificate of Eligibility: Once your application is approved, you should receive an email notification of approval.  Within three weeks after that, you will receive a Certificate of Eligibility in the mail. Each certificate has a unique certificate number. The Certificate allows you to participate in Random Selection Drawings for MPDU properties.

Notice the Expiration Date of the Certificate:  MPDU Certificates for purchasing MPDUs are valid for one year.  It is the responsibility of the applicant to renew the certificate within 60 days of the expiration of the certificate. The household will be recertified at the time of the certificate renewal. A household must have a valid MPDU Certificate of Eligibility when they sign a sales contract for an MPDU.  If the certificate is still valid, a homebuyer can go to closing without having their income recertified by the MPDU Program. However, they must be income-qualified by the lending institution.  

All MPDU sales certificates are valid for one year. The MPDU office will not send a reminder about when to renew your certificate. Please start the recertification process within 60 days of the certificate’s expiration date.

• To view current information about your MPDU Certificate of Eligibility click here. 
• To receive instructions about How to Renew Your Certificate or Update your Information refer to topics: “Keep Your Certificate Information Updated” or “Renew Your Certificate or Re-Apply”. 

Note: If you are not able to renew your certificate before the expiration date, you will need to restart the MPDU application process and will lose any points awarded when your certificate is valid.

MPDU Purchase Applicants must notify the MPDU Office of any changes in household size, address, contact information or income. Please update information as soon as the change takes place. Updates in the MPDU system can take up to 30 days after document uploads and outdated information can impact your qualification to participate in the Random Selection Drawings and purchase an MPDU. You will be notified by email if additional documentation is required.

Following are the items that must be kept updated and the documents required for each:

• Change in household size (new baby): birth certificate; letter from a hospital; or federal tax return showing a change in number of dependents, with names
• Change in marital status: marriage certificate or divorce decree
• Change of address: a copy of any two of the following: current rental lease, utility bill, and or driver’s license showing new address 
• Change of contact information (new cell phone or e-mail): enclose a short note with changes
• Change in income (more than $2,000): Two (2) most recent bi-weekly pay stubs; four (4) stubs if paid weekly; or letter on company letterhead verifying new employment and salary, PLUS a new pre-qualification letter.

To update your information, visit the MPDU Application Portal and upload any supporting documents as soon as the change takes place.

• If you already have access to the MPDU Application Portal, click here. Once you are logged in, go to the  Update Current Certificate tab.  Every time a document is uploaded a message at the top of the page will indicate that document is successfully uploaded. Please do not contact the office to verify if the document has been uploaded or not.  
• To view current information about your MPDU Certificate of Eligibility click here. 

Note: Only Current certificate holders can update information. If your certificate is eligible for renewal (expires within 60 days) or if your certificate has already expired, please refer to the topic “Renew Your Certificate or Re-Apply”. 

The MPDU Office lists new or resale MPDU properties at MPDUs for Sale website, as they become available. Approved MPDU certificate holders must check the site  regularly to view announcements about homes available for sale. If you want to be notified about new and resale MPDU units as they become available, click here to subscribe to the County’s eSubscription service and select Housing and Community Affairs/MPDU Sales List > New Homes and, or  MPDU Sales List > Resales, under Subscription Topics. 

• MPDU Certificate-Holders have the opportunity to purchase an MPDU based on a Random Selection Drawing process: Only MPDU certificate holders with an unexpired certificate are eligible to participate in the drawings if they meet the requirements for the listed property called RSD Eligibility.  
• New MPDU units : If you are interested in purchasing one of the available MPDUs, you must enter the online drawing. Click on the name of the development at MPDUs for Sale and, when prompted, enter Participant/Certificate Number and the last name of the primary participant. If you are eligible to buy one of the MPDUs based on your income and household size, 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. 
• Resale MPDU units : For MPDU Resale units, an Offering Code Number is required. To obtain the Offering Code Number, click on the development name of the home you are interested in to see the 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 into the Random Selection Drawing (RSD). 

RSD Eligibility: To be eligible to purchase an MPDU property, participants must:

1. Have Pre-Approval for a mortgage loan equal to or greater than the sales price of the available property (for example, if the sales price for the unit is $156,000, then your certificate must show that you qualify for a mortgage of no less than $156,000);
2. Have a Household Size appropriate for the number of bedrooms in the property (see chart below) unless an insufficient number of households of eligible size enter the drawing;

• Note: For MPDU properties in senior or adult communities, a household must have at least one household member who is age 55 or older (or a different age set by the community) AND no household members who are age 18 or younger. 
• Anyone who is not eligible to enter the Random Selection Drawing for a property will be excluded. Ineligible households will be notified about why they were ineligible when the results of the drawing are posted on the MPDU website. 

RSD Ranking: After the entry deadline, eligible participants will be grouped by Priority Points. Priority to purchase a home is given to participants who have accumulated the most "Priority Points." The maximum number of Priority Points is five (5). Points are assigned on the following basis: Living in Montgomery County = 1 point; Working in Montgomery County = 1 point; Number of consecutive years as an approved MPDU purchase program participant = 1 point per year (maximum of 3 years).

RSD winners contacted: Eligible registered participants in each priority point group will be randomly ranked using an online randomizing function. The final list with rankings in each group is published on the MPDU website. No identifying information, other than the certificate numbers, will be provided on the published list.

The MPDU office role in the RSD process is to send the list of the Random Selection Drawing results to the listing agent. Please do not contact the MPDU office to ask when someone will be contacted. The listing agent will follow the sale procedures described next.   

After the RSD is held, the listing agent will contact the first selected buyer to invite them to visit the MPDU and purchase the home. If the buyer is not interested, the agent will go to the second buyer, and so on, until he or she gets a contract. Declining to purchase a home does NOT penalize a household in future selections. 

Time to Renew Your Certificate: MPDU Certificates for purchasing MPDUs are valid for one year. You may renew your Certificate beginning 60 days prior to the expiration date. If you are not able to renew your certificate by 90 days after the expiration date, you will need to re-start the MPDU application process and will lose any points awarded when your certificate was valid. ​ DHCA strictly applies these renewal timeframes. (You do not need to re-take any class that you took within the past two years.)  

Steps to Renew your Certificate or Re-Apply: If you are renewing your certificate or, if you previously applied and your application was denied, you will need to take the online MPDU Application Tutorial before submitting your application. The Application Tutorial is an online training that includes tests you must pass with a score of 80% or better. You will be able to review the tutorial and re-take the tests as many times as you wish.

• To view current information about your MPDU Certificate of Eligibility click here. 

Steps and Instructions:

Step 1. Verify your renewal or re-application eligibility

• If you are an MPDU certificate holder with a current certificate that is within 60 days of the expiration date, please continue to Step 3. Please note that the system will not allow you to start your Certificate renewal application if your certificate expiration date is more than 60 days from today.

• If your certificate expired less than 90 days ago, please continue to Step 3.

• If your certificate expired more than 90 days ago or if you previously submitted your application and your application was denied or incomplete, you must re-apply to the MPDU Program. If you have taken both the First Time Homebuyer class and the Orientation Seminar within the last two years, please continue to Step 3. If it has been more than two years since you attended either one or both classes, you must re-take the expired class(es). 

Step 2 . Refer to the MPDU Application Checklist below 

• Government issued Identification, such as driver’s license, state ID or passport for primary applicants.

• First-Time Homebuyer Class Certificate issued within the past two years. ( Sample).  (Only if you are re-applying after your certificate expired more than 90 days ago or your application was denied)

• Mortgage pre-qualification letter with a pre-qualified amount of no less than $150,000 and issued within the last three months. ( Sample)

• Federal Tax Return: The most recently filed Federal Income Tax Return(s) (Forms 1040 and W-2) for every wage earner or IRS letter certifying no tax return was filed.  The preferred format for submitting a tax return document is PDF. However, if you are taking a picture; must upload page 1 and page 2 (page with the signature of the tax filer and or tax preparer)  of your Federal Tax Return and each W-2 form. ( Sample)

  • Self -prepared taxes are not acceptable. Obtain a Tax Return Transcript and all other tax-related transcripts at no cost from the Internal Revenue Service (IRS) at https://www.irs.gov/individuals/get-transcript or call 800-908-9946. ( Sample)

  • If you are self-employed and filled out a 1040 with form(s) 1099 Miscellaneous, 1099 NEC or a Scheduled C- Profit and Loss, ( see samples) of the document pages that must be provided.

• Proof of Income: Two (2) most recent pay stubs (or 4 pay stubs if paid weekly) for every wage earner in the household and from each current employment. ( Sample)

  • If unable to provide pay stubs because you have new employment or current employer does not supply with pay stubs, please print a Verification of Income form (PDF). Bank statements are not acceptable.

  • If self-employed, a notarized Year to Date Statement of Income and Expenses (this statement must be from current year starting from January to present) and a copy of Schedule C from your federal income tax return. ( Sample) 

  •  If retired, proof of pension income and/or social security income. ( Sample)

  • Proof of all other sources of income such as Social Security Income (SSI), Child Support or Alimony. Provide statements from the agency issuing this income. Bank statements are not acceptable.

• Proof of Residence: If your current taxes do not show your current address, provide copy of any two of the following: current rental lease, utility bill, and or driver’s license showing new address.

• Other documents for special situations. (Only if it is applicable to your household):

  • Divorce or separation agreements (if applicable or if the most recent tax return was filed as “married”).

  • If you have a newborn child who was not listed on your recent tax return, provide a copy of the child’s birth certificate.

  • If you have an adult child or relative such a parent that you are claiming on your taxes as your dependent, you must provide a Verification of Non-Filing Taxes (Form 4506-T) for each listed dependent. Obtain this form and all other tax-related transcripts at no cost from the Internal Revenue Service (IRS) at https://www.irs.gov/individuals/get-transcript or call 800-908-9946. ( Sample)

Step 3. Take an online MPDU Application Tutorial

Click here to receive instructions to create your online account and access ​the MPDU Application Portal if you haven’t created an account yet. 

If you already have access to the MPDU Application Portal and or need to provide additional documents requested by the MPDU office, click here .