Homeownership Equity Program
The Prince George’s County Homeownership Equity Program (HEP) is an innovative first-time homebuyer assistance initiative designed to expand access to homeownership and help income-eligible residents build long-term wealth through homeownership. Administered by the Prince George’s County Department of Housing and Community Development (DHCD), the program provides up to $30,000 per homebuyer in down payment and closing cost assistance through a zero-interest deferred loan, helping to bridge affordability gaps that often prevent residents from purchasing a home. The program specifically targets homeownership opportunities within communities located inside the Capital Beltway (I-495), supporting neighborhood stabilization, economic growth, and equitable access to housing.
The Homeownership Equity Program was established to address persistent barriers to homeownership, including rising home prices, limited down payment savings, and the growing racial and economic wealth gaps that affect many households. By reducing the upfront costs associated with purchasing a home, the program enables more residents to transition from renting to owning, allowing them to build equity, create generational wealth, and invest in the long-term success of their communities. The program is funded through the County’s Housing Investment Trust Fund and is part of a broader strategy to increase homeownership opportunities, preserve affordability, and strengthen neighborhoods throughout Prince George’s County.
Eligible participants of HEP may be able to leverage other homeownership resources, including assistance available through the Maryland Department of Housing and Community Development’s Maryland Mortgage Program, further enhancing affordability and reducing barriers to purchase.
Together with the County’s other homebuyer assistance initiatives, including the Pathway to Purchase and Critical Workforce Housing Assistance programs, the Homeownership Equity Program reflects Prince George’s County’s commitment to making homeownership more attainable for residents while advancing housing equity and expanding opportunities for families to achieve the dream of homeownership. Through this investment, DHCD continues to support its mission of ensuring more residents have access to safe, quality, and affordable housing and the opportunity to build a stronger financial future.
Specific information about HEP:
| Program Feature | Homeownership Equity Program |
|---|---|
| Program Purpose | Expand access to affordable homeownership for moderate-income County residents, particularly in targeted areas inside the Capital Beltway. |
| Target Population | Moderate-income County residents and certain priority groups |
| Eligible Occupations / Groups |
First-time homebuyers; county residents; county residents who are public-sector workers; county residents who are former renters in designated ZIP codes or neighborhoods within the I-495 Capital Beltway; or Households with multigenerational caregivers.
|
| Income Limit | Up to 120% of Area Median Income (AMI) |
| Type of Assistance | Down payment and closing cost assistance in the form of a zero-interest deferred loan |
| Maximum Assistance | Up to $30,000 per buyer |
| Loan Structure |
- Zero percent interest - Deferred payment second mortgage - Forgiven 20% per year for 5 years (fully forgiven if owner occupies the home for the five-year period) |
| Buyer Contribution | Minimum $1,000 buyer contribution |
| Homebuyer Education | 8-hour homebuyer education course required |
| Eligible Property Types | Single-family homes, townhomes, or condominiums located inside the I-495 Capital Beltway |
| Purchase Price Limits | None |
| Occupancy Requirement | Must remain owner-occupied for the forgiveness period |
| Application Process | Must qualify through an approved certified lender |