Thinking of buying a home in Chester County? If so, you're in luck: Chester County has a terrific program for first-time home buyers, offering up to $5,000 towards the purchase of a home.
The loan amount is based on the applicant's financial needs, and is repaid when the home is sold, transferred, or refinanced. And here’s the best part: the loan carries a 0% interest rate.
Closing cost assistance can be "coupled" with most loan types (FHA, VA, USDA, and conventional), including a Pennsylvania Housing Finance Agency home loan (PHFA).
Program requirements
Eligibility
To be eligible for a loan, a borrower must meet the following criteria:
- You must be at least 18 years old;
- Meet the income requirements (see below);
- Intend to occupy the home as your main residence;
- Obtain a 30-year, fixed-rate mortgage from a local lender;
- You must not have owned a house in the previous 3 years, or be a displaced homemaker.
Buyer Cash Contribution
You must have at least $1,000 to go towards the purchase of the home, plus savings equal to 2 mortgage payments.
- Maximum allowable down payment: 20% (Minimum LTV 80%);
- Liquid assets of the borrower after closing cannot exceed $10,000.
Eligible Properties must:
- Be existing or newly constructed single-family residences within Chester County;
- Be detached, semi-detached, attached, or condominiums;
- Meet HUD housing quality and lead-based paint standards;
- Have a sales price that does not exceed FHA limits, adjusted annually per FHA.
Eligible Mortgage Programs: Fannie Mae |FHA |USDA
Mortgage loan qualifications
You must be creditworthy and able to qualify for a mortgage at or below the current market rate.
Income eligibility
Your total gross household income must be at or below 80% of the median income, adjusted for household size.
I think I meet the requirements. Now what?
Meet with a Housing Partnership of Chester County councilor, prior to signing a sales contract. You are required to have a 1-on-1 counseling session and participate in 2 workshops.
Once again, these counseling sessions must be completed prior to buying a home!
This seminar covers topics such as:
- Closing/Settlement Day
- Final Walk Through
- HUD-1 Settlement Sheet
- Importance of Budgeting
- Inspections Life as Homeowner
- Looking at Personal Finances
- Obtaining a Mortgage
- Potential Financial Rewards
- Preparing for Closings Preparing for Homeownership
- Title Insurance
- Understanding your credit report
Pennsylvania Housing Finance Agency (PHFA)
Don't overlook the State of Pennsylvania home buyer programs for first-time and non-first-time home buyers. Some programs do not have income limits and the state also offers a down payment/closing cost assistance loan. Learn more.