first time homebuyers will receive a subordinated (2nd) mortgage up to a
maximum of $3,500 for their down payment and or closing costs.
The assistance grant is a zero interest, no monthly payment that is forgiven at twenty percent each year and totally forgiven after five years.
Beaver County helps low to moderate income home buyers purchase their first home with down payment and closing cost assistance
The applicant's is required to be at or below 80%
of median income for Beaver County.
Applicant must have an acceptable credit and work history to qualify for a mortgage.
One to four unit family homes are eligible for the program. Home buyers' must occupy the residence, or, occupy one of the units if the property consists of more than one living unit.
Income, Credit, and Debt Qualification
All applicants must be able to qualify for a mortgage at or below the current market interest rate.
HOME BUYER COUNCILING
Prior to executing a sale contract for the purchase of a house, you are required to complete a home buying and budget counseling program. Prospective home buyers will meet with a housing professional for a one-on-one counseling session who will talk about the importance of maintaining good credit, establishing a budget, mortgage financing and home ownership responsibilities. The counseling program can last a few hours.
FREQUENTLY ASKED QUESTIONS:
Lenders require a down payment of twenty percent with conventional mortgages. Private mortgage insurance, also known as pmi is a type of insurance that the homebuyer pays when he or she has a down payment of less than 20%. If the homebuyer defaults on the mortgage, the pmi company will pay the difference between the down payment and required 20%. For example, if the sales price of the home is $100,000 and the homebuyer gives the bank a 5% down payment, the mortgage insurance company will “guarantee” the 15% that the buyer was unable or unwilling to pay to the lender. In this example, $15,000 would be paid to the mortgage company if the homebuyer defaults on the mortgage. Read more
There is no zero cost home loan. There are always costs to purchase a home and it does not matter if the house is located in Pennsylvania or any other state. Some examples of incurred costs include transfer taxes, recording fees, title insurance and search, closing or settlement costs, notary fees, document preparation. Some loans can minimize the cash requirement. The VA home loan is a zero down payment mortgage and the VA permits the seller to pay all closing costs. The USDA loan is also a zero down mortgage and the seller is permitted to pay a percentage of the buyer’s closing costs.
If the buyer is using a mortgage to purchase a home, the buyer usually pays the mortgage related closing costs (i.e. underwriting, processing, appraisal, credit report, etc). In Pennsylvania, the transfer tax is usually split between buyer and seller. In Pennsylvania and other states, the buyer pays his expenses the seller pays their expenses unless the cost is required by law to be paid by the seller.
Maybe. The Federal Housing Administration requires a 580 minimum credit score and the credit score requirements have been falling for other loans. The Veteran Administration does not have a minimum credit score for a VA loan. Read more