If you're thinking about buying a home in Chester County, you're in luck, Chester County has a great loan program for first time home buyers. The county offers a closing cost assistance loan up to $10,000 for the purchase of a home in a Chester County township and $12,500 for purchase of a home in the City of Coatesville or in a Chester County borough.
The closing cost assistance can be "combined" with most mortgages (i.e. USDA, FHA, Fannie Mae), including a Pennsylvania Housing Finance Agency home mortgage (PHFA). It may be possible to buy a house in Chester County for only $1,000!
The assistance loan is paid back when the home is transferred, sold, or refinanced. The loan amount is dependent on the applicant's financial need. And here’s the best part, zero percent (0%) interest rate!
To be eligible for the Chest County assistance loan, the home buyer(s)must:
Maximum allowable down payment 20% (Minimum LTV 80%);
At least $1,000 towards the purchase of the home plus 2 mortgage payments in the bank.
Liquid assets (i.e. checking, savings, and investment accounts) of borrower after settlement cannot exceed $10,000.
Maximum Sales Price - $292,685
Eligible Properties must:
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.
The most popular mortgages are FHA, VA, USDA, and conventional loans. Congress establishes the maximum lending limit each year for these mortgages. There are some county exceptions. For example, the State of Hawaii and Alaska always have higher lending limits than most US counties. Loans that exceed the annual lending limits are called jumbo mortgages. The typical limit for a single-family FHA mortgage is $271,050. The FHA allows for higher lending limits for two, three, and four unit owner occupied residences. The VA loan is usually $417,000 for a one to four unit owner occupied building. Conventional loans (loans that are underwritten to Fannie Mae or Freddie Mac guidelines) are usually $417,000 for a single-family house or condominium. Higher limits are permitted with multi-unit owner occupied residences. The USDA does not have a maximum loan amount.