Northampton County's First Time Home Buyer Loan
First Time Home Buyer Program - Northampton County, PA
Northampton County offers home buying assistance to eligible first-time buyers. The loan program provides closing cost assistance up to a maximum of $5,000 to qualified first time home buyers. The assistance grant is structured as a subordinated mortgage (2nd mortgage lien).
The amount of closing assistance is based on the borrower's cash assets and the total cash requirement at settlement. The Mortgage, Promissory Note, and Loan Disclosure Statement documents will be recorded on behalf of the County of Northampton in the amount awarded after closing.
The closing cost loan does not require a monthly payment and no interest is charged on the mortgage.
The home must be located in a low to moderate-income area(s) of the
county where at least 42% of the residents have middle-incomes or
Eligible areas are the Cities of Easton and Bethlehem, in addition to certain areas within all other Boroughs and Townships of the county.
The house to be purchased can be one to four (4) units and you must you must occupy the property as your personal residence.
HOME BUYER LOAN QUALIFICATIONS
You need to be
creditworthy and qualified for a mortgage at or below the current
Northampton County Residency
residency in Northampton County is not required.
First Time Home Buyer Education
Applicants are required to complete a a home buyer counseling program prior to signing a sales contract. Participants are required to speak to a Counselor for a private counseling session to go over their credit responsibilities, budget, mortgage financing and home ownership obligations. The counseling program will likely last a few hours.
must provide no less than 1.5% of the sales price. The down payment
must come from the applicant’s checking, savings or investment
account(s) and must be verified by the mortgage lender.
The buyer’s liquid assets may not exceed the total of 3% purchase price at settlement. Any amount above the 3% must be applied to the purchase of the home. For example, an individual can have 4.5% of the sale price in ready cash, use 1.5% as a down payment and keep the remaining 3%.
Eligible Mortgage Programs
How much does it cost to buy a house in Pennsylvania?
Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.