Darby Township first time homebuyer program offers a maximum of $6,000.00
for closing payment assistance to qualified buyers.
Township assistance is based on the amount (gap) between the maximum amount a mortgage lender will lend and the total purchase price. Total purchase price includes the price of the house, the addition of the closing costs, and is reduced by the mandatory 3% down payment of the buyer.
The total price of the home cannot exceed $136,000. An Applicant under this program MAY NOT apply for a housing rehabilitation grant under the Township Program until 5 years from the date of settlement have passed. Also, the funds DO NOT apply to a Multi-Family Unit (i.e. duplex, etc.), only to Single Family Dwelling (i.e., row home, twin, single). This summary will introduce you to the program. Please take your time and read the summary thoroughly.
Annual income - Applicants must have an annual household income that does not exceed 80% of the Median Family Income for the Pittsburgh Metropolitan Statistical Area (MSA), which is determined by HUD and adjusted for family size. Household size is defined as the number of persons who will occupy the housing unit purchased through the Homebuyer Assistance Program.
Annual income is determined by the sum of the amounts on the prior year’s Federal Tax Return, W-2, and 1099 forms, which you must provide in your application. ALL persons in the home 18 years of age and older must include their income unless they are a full time student. (If a student is buying the home income must be included) Incomes of people under the age of 18 are not to be included.
FIRST TIME HOMEBUYER - A “first time homebuyer” is defined as any low-income household that has not owned a home within the past three (3) years. Some families that have owned a home within the past three (3) years can participate if they meet the established definition of a “displaced homemaker” or “single parent” as defined by HUD.
Purchaser must be a United States citizen or a permanent resident alien with a minimum of five (5) years of continual residency and show proof of same.
LENDER - Buyer is responsible to obtain a mortgage. The lender MUST certify to the Township, prior to the Township providing a commitment, that the proposed mortgage loan amount is the maximum amount that the borrower(s) can carry based on monthly cash availability using the Bank’s underwriting. Lender must complete the enclosed form and it should be submitted with your application.
PROPERTY REQUIREMENTS - Single family, vacant, or owner-occupied existing or new construction properties located within Upper Darby Township are eligible. Rental properties are eligible only if they are vacant at the time of the agreement of sale or if the buyer is the current tenant. Multi-unit dwellings (i.e. duplexes) are ineligible. Please note that the properties must be located within the Township boundaries and not just be a part of the Township school district.
Properties must be in the conformity of the Federal lead-based paint
requirements at 24 CFR Part 35 K WHICH STATE THAT THERE CANNOT BE ANY DETERIORATED
PAINT SURFACES ANY WHERE INSIDE OR OUTSIDE OF THE PROPERTY.
Principal Residence – The purchasing household must use the property as its principal residence. Any violation of the principal residency requirement will automatically trigger repayment of the Township’s subsidy.
BUYER/REALTOR - The buyer or buyers’ realtor must consult with Upper Darby Township office of Community Development before executing a finalized purchase contract.
OTHER CONDITIONS - There is no requirement that the
homebuyer remain income eligible after purchase.
Affordability Conditions - Buyers must use the property as their principal residence for the duration of the agreement; no leasing or rental is permitted. Any violations of the principal residency requirement will automatically trigger repayment of the Township’s loan.
During the first four (4) years from the date of settlement there is no forgiveness of the township mortgage. The entire principal on this loan is payable to Upper Darby Township at the time of sale, transfer of the property, conversion to a non-residential use, conversion to rental property, default on the first mortgage, death(s) of the owner(s), or destruction of the property due to fire or unknown reasons. The Buyer is required to maintain fire insurance on the property for the duration of the agreement, which lists Upper Darby Township as a lien holder. A certificate of insurance, which shows this, must be submitted prior to or at the time of settlement.
Beginning with the 5th year and ending with the 10th year the Upper Darby Township mortgage will be forgiven at a rate of 16.67% per year. At the end of the 10th year (from the settlement date) the mortgage will completely dissolve and be removed. No payment is due