The Dauphin County first time home buyer program provides down payment and or closing cost assistance to eligible first time home buyers up to a maximum of $3,000. The assistance program is a no interest, no monthly payment 2nd mortgage
Repayment of the second mortgage is required upon homeowner's resale of the home. Upon this sale, the original principle amount of the loan is due and payable in full. If the homeowner refinances, the original Dauphin County mortgage may be subordinated to the new first mortgage.
Maximum sales price is $164,900. The house to be purchased must be located within Dauphin County. The applicant need not currently reside within Dauphin County. At no time during the term of residency shall the homeowner lease the premises or any portion thereof to any person or entity.
Household income cannot exceed 80% the median income of Dauphin County. The income limits are calculated for Fiscal Year 2012 by the U.S. Department of Housing and Urban Development (HUD).
The applicant must be a first-time home buyer or not have owned a home within the last three years.
The home buyer must contribute a minimum of 3% of the lesser of the purchase price or the appraised value or $1,000. (whichever is less) from the applicant's assets.
At the time of settlement, the buyer's liquid assets may not exceed the total of $5,000.00.
The applicant must need the second or subordinated mortgage in order
to afford the house, but also must require assistance, which does not exceed
the maximum second or subordinated mortgage amount of $3,000 other than
through PHFA's Closing Cost Assistance Program.
The applicant must complete the home buyers workshop.
FREQUENTLY ASKED QUESTIONS:
Yes. Points refer to prepaid interest. Lenders are able to lower the over all interest rate on a mortgage if you are willing to prepay some of the interest on a loan at closing. A “point” is equal to 1% of the loan amount ($100,000 X 1% = $1,000). Two points are calculated in this example - $100,000 X 2% = $2,000. The points are considered a closing cost.
No. The VA does not require an eligible veteran to be a first time homebuyer to use his or her entitlement to purchase a home. Read more
The seller usually pays the real estate commission
There are a number of costs when purchasing a home in Pennsylvania. You can easily estimate the mortgage payment and closing costs with the PA Closing Cost calculator
Yes. If you are purchasing a foreclosed home owned by the FHA (HUD), the home must be “FHA insurable”. If a bank or another government agency owns the foreclosed home, the home will have to meet the FHA appraisal requirements.