To compliment Down Payment & Closing Cost Assistance
programs, there are a variety of affordable mortgage
programs offered by lenders in our area. These programs
can be used in conjunction with the down payment & closing
cost assistance programs, enabling lower income families
and individuals to become homeowners. Who can use these
programs? Persons of limited income, who are credit
worthy and, except for lacking funds for down payment
and closing costs, are strong candidates for home ownership.
With these tools at hand, it is our fiduciary responsibility,
as REALTORS, to actively serve this segment of the market.
Listed below are affordable mortgage products available
locally, as well as three additional assistance programs
available
No income limits if property is located within targeted area
· 97% financing permitted
· No maximum housing expense to income ratio
· Monthly debt to income ratio should not be more than 42%
· Property must be owner occupied, requirements may differ for more than 2 units
· Pre-purchase counseling IS required
· If the sales prices is $80,000 or less, borrower must contribute the lesser of the 2% of the sales price or $1000. If the sales price exceeds $80,000, borrower is required to contribute 2% of sales price of their own funds.
• Income limits: York Co. 1 or 2 persons $ 63,700 3+ $73,200 Adams Co 1 or 2 persons $60,000 3+ $69,000
• Purchase Price must not exceed York Co. $ 289,000 Adams Co $237,000
• Meet definition of 1st time homebuyer
• 33/38 qualifying ratios
• 30 year fixed rates below market rate mortgage loans
• May require 1% origination fee & $300 qualifying fee
• Homebuyer education required if credit score below 660
• Possible recapture tax reimbursed by PHFA
• Must be homebuyer's primary residence 1 or 2 units allowed
• FHA loans and conventional require between 3%-5%
• Income limits: York Co. 1 or 2 persons $50,900 3+ $58,500. Adams Co. $48,000 and $55,200.
• Purchase price must not exceed York Co. $202,000 Adams Co $170,000
• Must meet definition of a family or be a single disabled person.
• Meet definition of 1st time homebuyer.
• 33/38 qualifying ratios
• Primary residence only or 2 unit permitted with FHA or VA mortgage.
• Liquid assets after closing may not exceed $5000
• May require 1% origination fee
• Eligible borrowers may qualify for $2000 closing cost assistance.
• No income limits
• Not restricted to first time homebuyers
• Borrow contribution is 3% of sales price - may be gifted
• No reserves required
• Maximum loan amount in York & Adams Counties is $200,160 (single family)
• Up front mortgage insurance premium may be financed into loan
• Low monthly mortgage insurance premium
• No full house inspection required
• Property must meet HUD guidelines
• Property must be 1-4 unit owner occupied
• No restrictions on property location
• Seller may pay up to 6% of closing costs
• Standard ratios of 29/41 - may exceed under certain circumstances
• Pre-purchase counseling NOT required
• No income limit
• Maximum financing available
• No reserve requirements
• 2% funding fee may be financed through the lender
• No monthly mortgage insurance
• Closing costs may be gift, borrowed or paid by seller
• Fixed rate only
• Fully assumable mortgage
• No pre-payment penalties
• Income limits to 115% of median based on family size (York Co. family of 4 is $73,250, Adams Co. $68,650)
• 100% of value financing permitted
• First time homebuyers only, unless current housing is inadequate
• No borrow contribution required
• No reserves required
• No maximum mortgage amount
• Up front fee of 2% (of the sales price) may be financed into the mortgage amount if the appraised value sufficiently exceeds the sales price
• No monthly mortgage insurance premium
• Property must meet HUD guidelines & defined thermal standards
• Must be single family, owner occupied dwelling
• Property must be located in a designated rural area
• Seller may pay all closing costs
• Standard ratios of 29/41, although some exceptions may be made on the housing ratio
• Pre-purchase counseling NOT required
• Meet the definition of a first-time homebuyer and not be on the deed of any property at the time of application
• Be a citizen or permanent resident of the US , be over 18 years of age, and possess the legal capacity to incur the obligation
• Intend to occupy the single-family property being purchased as a primary residence
• Earn less than 80% of median income (per family size) Family of 4 = $47,750
• Qualify for financing under an approved first mortgage program being offered by a participating lender
• Attend homebuyer education classes approved by the Adams County Interfaith Housing Corp. prior to settlement
• Be pre-approved by a lender prior to applying for the assistance
• Agree to the terms of the loan to be provided (interest rates will vary between 3%-9%, terms will vary between 5-10 years, loan amounts will vary between $2-$7,000 depending on the household income of the borrower)
• Agree to pay the fee for the ACIHC to run a credit report, the fee to record the lien, and an administration fee of 3% of the loan amount (not to exceed $100)
• Borrower(s) may not have liquid assets that exceed $1,200 after closing
• Must meet the definition of a first time homebuyer
• Intend to occupy the single-family property being purchased as a primary residence
• Earn less than or 80% of median income (per family size)
• Qualify for financing under an approved first mortgage program being offered by a participating lender
• Attend 8 hours of classroom pre-purchase counseling prior to settlement
• Close on a mortgage loan within eleven (11) months of registering for the Program
• Agree to a 5 year forgivable lien being placed against the property for the amount of the assistance (The FHLB/HBEF is a “matching program”. The match is $3.00 for each $1.00 contributed by the participant; however, under NO circumstance will the match exceed $5000.)
• Agree to pay the fee to record the forgivable lien.
• Must be one unit owner occupied
• Must meet the definition of a first time homebuyer
• 80% of median ($50,950 for a family of 4)
• Buyer must contribute 3% of purchase price, ½ can be gifted
• 2% down payment assistance plus 6%- 8% closing cost assistance, County assistance not to exceed $5,000
• No monthly payments, 5 year forgivable lien
• Liquid assets after closing may not exceed $5,000. Recording fee charged.
• All applicants must attend homebuyer education classes
Many local lenders have customized mortgage products designed to meet the needs of first-time buyers and homebuyers who fall within specific income guidelines. Please ask lenders about these programs.
