Dauphin County Department of Community and Economic Development offers a down payment and closing cost assistance program for first time home buyers buying a home in Dauphin County Pennsylvania. The Dauphin County first time home buyer program is a subordinated or second mortgage program that provides up to $3,000 to an eligible home buyer.
Dauphin County Down Payment Assistance Requires Home Buyer Education
To be eligible for a down payment assistance program from Dauphin County home buyers will have to be able to qualify for a mortgage as well as attend a home buyer education program certified by the Dauphin County Department of Community and Economic Development. The most widely accepted home buyer education program for the Dauphin County home buyer program is the Capital Region Community Homebuyers Coalition Workshop facilitated by the Harrisburg Fair Housing Council.
Do I Have To Repay My Dauphin County Down Payment Assistance Loan?
Repayment of the second or subordinated mortgage occurs only when the home is sold. This means that there are no monthly payments on the money obtained from the Dauphin County Department of Community and Economic Development for buying a home. It is possible to not have to pay the second mortgage off when the home is sold if there is not enough equity left to pay the second mortgage. In this case, the home owner will still be held responsible for paying the unpaid loan in due time.
Down Payment Program For First Time Home Buyers
First time home buyer applicants shall work through a participating and approved mortgage lender to get the down payment assistance from Dauphin County. If you plan on using this program to purchase a home, Dauphin County advises that you participate and complete the home buyer education course as previously described. Completion of this course will prepare you for the mortgage process and the process of buying a home.
What Are The Eligibility Requirements Of Dauphin County’s Down Payment Program?
Not everyone can apply and be eligible for this program. This program is intended for low income first time home buyers. To be considered low income, a home buyer’s income along with that of the household income must be under the income caps set by HUD each year. The income limit is based on the size of the household.
If you are considering this program you must be able to put at least 3% down or $1,000 whichever is less into the deal. You also must not have more than total liquid assets of $5,000 at the time of your settlement.
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