Helping Gaithersburg Residents Achieve Homeownership: Loan Assistance Program

The Gaithersburg Homebuyer Assistance Loan Program (GHALP) plays a crucial role in making homeownership a reality for eligible, first-time homebuyers within the City of Gaithersburg. By offering valuable financial assistance in the form of closing costs and down payment support, GHALP aims to bridge the gap to homeownership for individuals and families in this vibrant community.

Available Assistance

GHALP provides eligible participants with the opportunity to receive financial assistance equal to up to 10% of the sales price of their prospective homes. This assistance is provided through a zero-interest, deferred loan, which means that recipients do not need to pay interest on the funds they receive. To formalize their participation in the program, applicants are required to sign a promissory note and a second deed of trust at the time of property settlement.

The amount of assistance available under GHALP may vary based on the location of the property. Specifically, two zones have been established:

1. Standard Zone: In this zone, eligible homebuyers can receive assistance of up to $12,000. This generous support can significantly ease the financial burden of closing costs and down payments.
2. Opportunity Zone: For properties located in the Opportunity Zone, GHALP offers even more substantial assistance. Qualified applicants may receive up to $25,000 in financial aid, providing a substantial boost to their homebuying journey.

Eligibility Requirements

GHALP is designed to be inclusive, benefiting a wide range of individuals and families in Gaithersburg. To ensure that this assistance reaches those who need it most, there are specific eligibility requirements in place:

• First-Time Homebuyers: GHALP is primarily aimed at first-time homebuyers. However, certain Priority Populations are exempt from this requirement. Priority Populations include K-12 public and private school employees, full-time or permanent part-time employees of the City of Gaithersburg, police officers, fire safety employees, and veterans. This flexibility broadens the program’s reach to benefit those who serve the community.
• Residency or Employment: To be eligible for GHALP, applicants must meet residency or employment criteria. Specifically, they should have lived or worked within the City of Gaithersburg for a minimum of one year before applying for the program. This requirement aims to support individuals with a genuine connection to the community.
• Income Limits: GHALP income limits are established to ensure that assistance is directed toward individuals and families who need it most. For Priority Populations, annual household income can be as high as 120% of the Area Median Income (AMI). Meanwhile, other applicants—City residents or those employed within the City limits—must have annual household incomes at or below 100% of AMI.

Income Limits

GHALP income limits play a crucial role in determining eligibility and the level of assistance that applicants can receive. These limits are based on a percentage of the Area Median Income (AMI) and are categorized as follows:

100% AMI

• 1-person household: $90,300
• 2-person household: $103,200
• 3-person household: $116,100
• 4-person household: $129,000
• 5-person or more household: $139,320

120% AMI

• 1-person household: $108,360
• 2-person household: $123,840
• 3-person household: $139,320
• 4-person household: $154,800
• 5-person or more household: $167,184

These income limits are set to accommodate a range of household sizes, ensuring that GHALP can support a diverse array of individuals and families on their path to homeownership. The program’s flexibility in income limits underscores its commitment to inclusivity and community support.

In conclusion, the Gaithersburg Homebuyer Assistance Loan Program (GHALP) is a valuable resource for eligible first-time homebuyers in Gaithersburg. By providing substantial financial assistance for closing costs and down payments, GHALP is making homeownership more accessible and achievable for residents. The program’s income limits, eligibility criteria, and zoning-based assistance ensure that it serves a wide range of individuals and families, strengthening the community and fostering homeownership dreams. GHALP stands as a testament to Gaithersburg’s commitment to the well-being of its residents and the growth of its vibrant community.