Rockville Homeownership Assistance Program

About Rockville Homeownership Assistance Program

The Rockville Homeownership Assistance Program (RHAP) helps eligible low- and moderate-income homebuyers purchase a home within Rockville city limits by providing financial assistance for down payments and closing costs. RHAP may be used to purchase market-rate homes or Moderately Priced Dwelling Unit (MPDU) homes.

Assistance is subject to funding availability and is awarded on a first-come, first-served basis.

Eligibility

Applicants must:

  • Meet household income requirements.
  • Purchase a home within Rockville city limits. Applicants do not need to currently live in Rockville.
  • Meet the lender’s minimum credit score and debt-to-income requirements.
  • Complete a HUD-certified first-time homebuyer course.

Eligible borrowers may receive up to 3%, 5%, or 10% of the purchase price, or the affordability capacity amount, whichever is less. Affordability capacity is calculated by city staff using a formula that considers factors such as household income, mortgage interest rates, and other program requirements.

Qualified first-generation homebuyers with household income at or below 120% AMI are eligible to receive an additional $10,000 forgivable lien.

A first-time homebuyer is someone who has not owned a home in the past three years.

A first-generation homebuyer is someone who has had no ownership interest (sole or joint) in another property during the three years preceding the closing date and one of the following must apply:

  • No parent of the borrower has owned a property during the three years preceding the closing date.
  • The borrower aged out of foster care.
  • The borrower became emancipated.

Income eligibility limits are updated annually, based on HUD guidelines:

Household Size80% AMI100% AMI120% AMI
One Person$91,784$114,730$137,676
Two People$104,896$131,120$157,344
Three People$118,008$147,510$177,012
Four People$131,120$163,900$196,680
Five People$141,610$177,012$212,414
Six People$152,099$190,124$228,149
Seven People$162,589$203,236$243,883
Eight People$173,078$216,348$259,618

Loan Terms

  • No interest.
  • No monthly payments.
  • Repayment is fully deferred until the property is sold, transferred, rented in its entirety, or converted primarily to business use.
  • RHAP funds may be used for down payment assistance, closing costs, and other expenses such as taxes and insurance premiums.
  • RHAP funds may be combined with state- and county-sponsored down payment assistance programs, such as the Maryland Mortgage Program (MMP).
  • Cash-out refinances require approval.
  • Any financing type may be used if it is not considered predatory by city staff. Conventional loans are acceptable; other financing types may require additional review.

How to Apply

1

Verify the Property is in Rockville

Use our address finder at rockvillemd.gov/services to determine if the property is located within Rockville city limits.

2

Attend a First-Time Homebuyer Class

You can attend Montgomery County’s six-hour First-Time Homebuyer Class conducted by the Housing Initiative Partnership or attend a class through any HUD-approved counseling agency. Be sure to obtain a copy of the completion certificate.

3

Get Pre-Qualified by a Mortgage Lender

You may use any mortgage lender. If you plan to combine RHAP with MMP assistance, you must use an MMP-approved lender.

4

Submit Your Application

Email your application to homeownership@rockvillemd.gov. Include two recent pay stubs and the most recent tax return for each adult who will live in the home, along with the completion certificate for your first-time homebuyer class.

5

Application Review

You will be notified after your application has been reviewed. If approved, funds are typically reserved for 45 days. A signed purchase contract must be submitted within that reservation period or the funds may be released to the next eligible applicant.