No matter where you are, buying a home is very costly. Saving more than enough money for a home purchase does not just happen overnight.
Thanks to down payment assistance grants and programs, home buyers will worry less about sacrificing too much on their budgets in order to save a lot.
DPA programs are usually offered at both local and national levels. This time, we turn our focus on homebuyers who are seeking DPA programs in Pennsylvania.
Here are some of the programs offered by the state of Pennsylvania.
Delaware County Homeownership First Program
For homebuyers in Delaware County, eligible applicants may qualify for down payment assistance of up to $5,000. The funds may be used to cover 2 percent of the down payment and its remainder may be used to cover eligible closing costs.
Like any other grants and programs, borrowers must meet certain qualifications for them to be eligible.
First, the program only qualifies for first-time homebuyers or individuals who haven’t owned a home in the past three years. Second, if a borrower is qualified, each one is required to pay at least $1,000 for the home purchase. Third, every borrower should complete an 8-hour homeownership counseling together with one individual session.
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HOMEstead Downpayment and Closing Cost Assistance Loan
Made possible by the Pennsylvania Housing Finance Agency, the program grants eligible homebuyers with a second loan of up to $10,000 to cover down payment and closing costs.
Borrowers may be granted additional funds, depending on family need, to make the home more affordable to the buyer.
Keep in mind that borrowers should go through a participating lender to qualify for the program and not through the PHFA.
Keystone Advantage Assistance Loan Program
Another example of the DPA programs in Pennsylvania is the Keystone Advantage Assistance Loan Program.
Still under Pennsylvania Housing Finance Agency, there are one other financial assistance programs for borrowers in Pennsylvania.
The program is in the form of a second mortgage and has specific requirements for eligibility. Borrowers should have a minimum credit score of 660 in order to qualify for the program. Other than that, the borrower’s liquid assets should not be more than $50,000.
The minimum loan amount for the program is $500 and the assistance may only be used for the minimum down payment and closing costs. The program may be also used with FHA, VA, and RD loans.
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Lancaster Housing Opportunity Partnership DPA Program
This program is one of the many county-specific DPA programs in Pennsylvania. For home buyers in Lancaster County, they can get financial assistance of up to $5,000.
It’s a zero percent interest DPA program that may be granted in conjunction with mortgages that are offered by partner lenders in Lancaster County.
To qualify, applicants should be considered first-time homebuyers or non-homeowners in the past three years.
They should also complete Home Buyer Course from Lancaster Housing Opportunity Partnership of LHOP. Certain income requirements are also set and are based on how many members are part of the household.
Additional qualifications and requirements are stated on their official website.
There’s definitely one perfect assistance program for you
When in doubt, always turn to your trusted lenders and seek their assistance. After all, they want what’s best for you.
In terms of choosing among the different DPA programs in Pennsylvania or anywhere in the country, they surely have some good advice to give on the matter.
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