STATEWIDE PROGRAMS

HOMEstead Downpayment and Closing Cost Assistance Program

Assistance Available:
The PA Housing Finance Agency offers a number of programs to individuals who need assistance with purchasing a home.

The exact program for you will depend on your individual preferences, credit history, and cash savings along with other factors.

One of the programs provided is the HOMEstead Downpayment and Closing Cost Assistance Program. Eligible borrowers can get up to $10,000 for help with downpayment and closing costs. These are zero interest, forgivable, 5 year loans. The loans are forgiven at 20% per year. The minimum amount loaned is $1000. PFHA provides the first mortgage.

Qualifications:
Income and purchase price requirements vary by county. Seven counties and most major cities are excluded from this program because they receive federal allocations of their own. Homes must meet federal guidelines. Federal regulations for lead based paint hazard apply, making most homes built prior to 1978 ineligible.

Keystone Advantage Assistance Loan Program
Another program offered by the PA Housing Finance Agency is the Keystone Advantage Assistance Loan Program. This program provides up to 4% of the purchase price or $6,000, whichever is less. These are zero interest loans repayable monthly over a 10 year period. The assistance may be used in conjunction with a Keystone Government loan, a Keystone Home loan, or HFA Preferred. The minimum amount of assistance is $500.

Qualifications:
You must have a minimum credit score of 660. Your liquid assets must be less than $50,000 after funds required to close the loan are deducted. Keystone loans may not be combined with other PHFA programs with the exception of the Access Modification Loan Program.

CITY AND COUNTY PROGRAM

Delaware County
Delaware County Homeownership First and Revitalization Program

Assistance Available:
The Chester Community Improvement Project partners with the Delaware County Office of Housing and Community Development to provide assistance to homebuyers with low to moderate income and interest in purchasing property in Delaware County. The assistance comes in the form of up to $5000 to help defray downpayment and closing costs. The actual amount will be equal to 2% of the purchase price.

These zero interest loans are repayable upon the sale or transfer of the home. Loans made in areas designated as revitalization areas by the county are 100% forgiven if the borrower remains in the home for at least 5 years.

Qualifications:
You must be a first time homebuyer (have not owned a home in the past 3 years) unless you are a displaced homemaker. You will be evaluated for assistance on the basis of credit history, assets, and income. The first mortgage you secure must be 30 year fixed at market or below market rates with a minimum 95% loan to value ratio and no more than 3 points charged.

Your liquid assets, excluding retirement, must not exceed $5000 at closing. You are required to contribute a minimum of $1000 of your personal funds toward the home purchase. All applicants are required to complete 8 hours of group homeownership counseling and one individual counseling session.

Eligible properties include single family homes, condominiums, townhouses, rowhouses, and twin detached houses. Renter occupied, duplexes, and properties located in Chester City, Haverford Township, and Upper Darby Township are ineligible.

Lancaster City and County
Lancaster Housing Opportunity Partnership Loans

Assistance Available:
Qualified homebuyers can receive 8% of the purchase price to help defray downpayment and closing costs. The maximum amount loaned is $5000. These are zero interest loans with no monthly payments. Repayment is due only when the property is sold or transferred or when the borrower stops living in the property as the primary residence. These are second mortgages. Lancaster Housing Opportunity Partnership must be listed on the Homeowner’s Insurance policy as an additional insured.

Qualifications:
You must be a first time homebuyer (have not owned a home in the past 3 years), unless you are displaced by divorce and have been removed from the note and mortgage. You must complete a homebuyer course before signing a sales contract. You must have been a resident of Lancaster County prior to applying for the loan. You must occupy the property as your primary residence and move in within 60 days of closing.

Income limits apply. You must contribute 1% of the purchase price or $1000, whichever is greater, from your personal funds. The minimum 1st mortgage is 90% loan to value. Recording fees are the responsibility of the borrower.

The property purchased must be located in Lancaster County. The purchase price may not exceed $200,000. New and existing homes are eligible. Manufactured homes affixed to a permanent foundation are eligible as long as the lot on which the home is located is included in the sale. A home inspection including lead based paint hazard inspection and wood destroying insect infestation inspection is required.