LEDC's PG County Down Payment Support Program

Homeownership is one of the keys to healthy neighborhoods. Working families deserve to live in their dream home, but too many are unable to turn those dreams into a reality.

LEDC’s Maryland Housing Department is excited to offer their Down Payment Support Program to support first-time home buyers in Prince George’s County with a one-time grant of up to $5,000 in down payment support.

Sign Up Now to get in contact with a member of our Housing Team now!

LEDC hopes to help individuals and families who can afford a monthly mortgage payment and bills but have not been able to save enough for a down payment and/or closing costs to buy their home.

Eligibility Requirements

  • Applicants must be first-time homebuyers who have not owned any other property for three years prior to the date of purchase of the new primary residence.
  • Applicants must complete LEDC’s Homebuyer Education 6-hr Seminar and 2-hr individual financial Pre-Purchase Counseling session to earn their Homebuyer Education Certificate within one year BEFORE WRITING AN OFFER ON A HOME.
  • Applicants for the program must have gross annual household incomes at or below 80% Area Median Income (AMI) for Prince George’s County, as published by the P.G. County Pathway to Purchase Program. Household income will be determined by calculating the income of all members of the household 18 years and above (unless they are full-time students, up to 22 years old), regardless of whether the household member is an applicant for the first mortgage.
  • Applicants who have liquid assets (checking, savings, CDs, etc.) of at least 20% of the purchase price of the property will not be eligible for this program.
  • Applicants must meet the program criteria and qualify for a home mortgage loan with a lender of their choice to purchase an owner-occupied primary residence only.
  • Applicants must apply for the DPA at the moment of having an eligible ratified sales contract for a residential property in P.G. County. They must complete and submit the application forms and all required documentation at least four weeks prior to the scheduled settlement date.
  • Applicants must get a home inspection of the property, to be better informed of its conditions.
  • Applicants are required to put $1,000 minimum down-payment from their own funds.
  • A Social Security number is not a requirement to be eligible for this program.

Terms and Limitations

  • The amount of support will be 1% of the purchasing price, up to $5,000 per family.
  • Funds are available for a limited time and funds are awarded on a first-come first-served basis, they are not guaranteed or able to be reserved in advance.
  • To ensure funding, applicants will need to provide a signed and executed purchase agreement and the grant application must be submitted at least four weeks prior to closing.
  • Funds are provided prior to settlement and grant funds may be combined with other federal, state, and local homeownership programs.
  • Applicants must agree to live in the home being purchased as their principal residence for a minimum of three years.
  • If the property is sold anytime during the first three years, a pro-rated portion of the balance of the grant shall be immediately due and payable to LEDC. If at any time during the three-year period the property ceases to be owner-occupied, the entire original grant amount shall become due.
  • No monthly payment required. Interest would not accrue on the grant. Proceeds would only be due if the property is sold within the first three years of home ownership.
  • LEDC will conduct yearly follow up and require residency documentation to ensure compliance with this requirement for the first three years.
  • Three years after the date of purchase, the owner(s) will be under no obligation to repay the grant funds.
  • Down Payment Grant program funds may be considered taxable income, a 1099-MISC will be issued to the grantees, consult with your tax advisor if needed.
  • These grant funds are administered by LEDC on behalf of the National Fair Housing Alliance (NFHA) and made available to help alleviate potential homebuyers' inability to cover the down payment and closing costs required to purchase their first home.

To learn more about the Application Process, Terms and Limitations, and the Required Documents, please click here to continue reading.

*** Limited Funds are available and are offered at a first-come first-served basis. ***