The City of Gaithersburg has announced new changes to its Gaithersburg Downpayment Assistance program, or Gaithersburg DPA. The program now allows borrowers to access up to $40,000 in downpayment and closing cost assistance. These loans remain 0% deferred and are accessible to eligible first-time homebuyers purchasing within the City of Gaithersburg corporate limits.
Per the City of Gaithersburg: In addition to the increased loan amounts, beginning July 1, 2025, the City will require all applicants to be working with a Maryland Mortgage Program approved lender. 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. Applicants must have lived or worked in the City for at least one year prior to the date of application.
Eligibility: An applicant must have lived or worked in the City of Gaithersburg for at least one year prior to the date of application. Starting July 1, 2025, applicants must also be working with a Maryland Mortgage Program (MMP) approved lender.
Applicants considered a “Priority Population” will be prioritized when multiple applications are submitted. Priority Populations include K-12 Montgomery County public & private school* employees, City of Gaithersburg full-time or permanent part-time employees, police officers, fire safety employees or veterans.
Applicants may receive closing cost and/or down payment assistance with incomes up to 120 percent of AMI.
*Private schools must be licensed in Montgomery County by the State of Maryland for their employees to be considered as part of the Priority Population.
Income Maximums* by Household Size
| Household Size | 1 Person | 2 | 3 | 4 |
| 80% | $68,500 | $78,250 | $88,050 | $97,800 |
| 100% | $108,290 | $123,760 | $139,230 | $154,700 |
| 120% | $129,948 | $148,512 | $167,076 | $185,640 |
| Household Size | 5 | 6 | 7 | 8 |
| 80% | $105,650 | $113,450 | $121,300 | $129,100 |
| 100% | $167,076 | $179,452 | $191,828 | $294,204 |
| 120% | $200,491 | $215,342 | $230,194 | $245,045 |
*Incomes are updated annually.
Loan Amounts
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 |
Not all residences with a Gaithersburg address are within the corporate limits of the City of Gaithersburg. Please click here to see if the residence falls within the City limits, and the amount of assistance for which the property is eligible.
These funds are available in a 0% deferred loan. The buyer will be required to sign a promissory note and second deed of trust at settlement. Please see the program synopsis for more information.
How To Apply
- Submit the DPA Pre-application, available in English and Español, to see if you pre-qualify. Pre-applications can be sent [email protected]. Pre-applications are only used to determine eligibility, it does not guarantee that funds will be received.
- If you pre-qualify with the City, you will need to take a HUD-approved first-time homebuyers counseling class.Please choose from one of the following education providers. If you take a course not listed below, please confirm with Housing staff that the course is acceptable:
- Before you can receive City funds, you MUST meet with an approved MMP lender for Montgomery County and be approved for a mortgage loan. The list of approved lenders can be found here.
- Once you have been approved for a mortgage loan, you can start looking for a home to buy! For City funds, you MUST purchase within the City of Gaithersburg limits. You can confirm your new home is within City limits here.
- Once a Sales Contract is in place, your loan officer will submit your required documentation to City staff to be reviewed.
- If approved, your lending company will receive a check up to $40,000 for downpayment and closing cost assistance program. You will be required to sign a deed of trust and promissory note with the City of Gaithersburg, acknowledging that you are aware that the funds from the City are a 0% deferred payment loan. DPA loans are not forgivable.
Homebuyers, lenders, or real estate agents can submit all documentation by mail to City Hall, 31 South Summit Avenue, Gaithersburg, MD 20877, or by email to [email protected]. The Pre-application serves as a pre-screening tool for City Staff to determine eligibility. Once that is uploaded, City staff will determine eligibility. If eligible, staff will contact the applicant to request further required documentation.
Please email Housing Services for more details.