For some people, the thought of buying a home can seem as far away as the moon. No matter how they try, they can’t save enough money for the down payment and closing costs. If this sounds like you, and you want to buy a home in Centre County, then the Centre County Commissioners want to help.
The Centre County Housing Trust Fund offers eligible home buyers a down payment assistance loan of 10% of the sales price or $10,000 (whichever is less) for a home in Centre County.
The applicant must be a first time home buyer. A first time home buyer is someone who has not owned a home during the past three years. A single parent who is legally separated and has joint or full custody of one or more minor children may also be eligible.
Applicant are required to be US Citizen(s) and residents of Centre County or employed in Centre County.
First-Time Home Buyer Requirement - Applicants may not have owned a home during the past three years, or is a single parent who is legally separated and has joint or full custody of one or more minor children.
Asset Limitation – At the time of application, the buyer’s liquid assets (cash) and real property shall not exceed $15,000 and at the time of settlement, the buyer’s liquid assets (cash) shall not exceed $5,000.
Income Eligibility - Applicants must meet the income limits for Centre County
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.
Maybe. Is the line of credit a lien on your home or other asset? The mortgage rules permit collateralizing an asset, like a house. The lender will use the payment on the line of credit as a debt obligation. However, if you intend to use a credit line that is not secured, then no.
The FHA home loan requires mortgage insurance, but not life insurance. I know it’s a little confusing. The FHA mortgage insurance is a little extra money that the borrower pays at closing in cash or finances with the loan. The FHA mortgage insurance is paid into a reserve fund that is used to bail out lenders who foreclose on FHA loans. The FHA does not require borrowers to obtain life insurance.