Berks County House Buyers

House with a sold signClosing-cost assistance may be offered to qualified low to moderate income families that are accepted for an FHA mortgage and are buying a property in Berks County, including the City of Reading. This assistance program works in tandem with affordable home-loan options provided by FHA-approved lenders.

Eligible properties - single-family, owner occupied homes located in the City of Reading, Boroughs of Berks County, and Berks County Townships.

Loan Description - fixed-rate mortgage loan product.

Maximum Loan Amount - $25,000 plus up to $3,000 for the repair escrow.

Loan Term - 15, 20, 25 or 30-years (depending on the lender)

Interest-rate - The mortgage lender's interest-rate at time of application 

Down payment - No down payment required ($0)

Closing expenses - Applicants must provide a minimum of $1,500 from their own resources to closing costs. The remaining closing expenses may be given by a relative and/or contributed by the seller up to 6% of the purchase price. Once the minimum of the borrower's own money need has been fulfilled, the NHS may provide an extra loan amount of 10%.

When it becomes available, applicants who meet the FHLB eligibility criteria may utilize the Federal Home-Loan Bank Home Equity Fund in conjunction with this program.  Private Mortgage Insurance is not required

Counseling - Applicants are required to attend eight hours of pre-purchase home-buyer counseling. The home-buyer counseling course includes budget advice, and borrowers must be able to save at least $50.00 per month.

Income Qualifications - The applicant's household income cannot exceed 105 percent of the HUD Median Income based on family size within the City of Reading, and it cannot exceed 80 percent of the HUD Median Income outside the city.

NHS accredited inspectors must perform the property inspection.
All health and safety repairs must be completed by the seller prior to settlement, or the borrower may borrow up to $3,000.00 from the NHS to be held in escrow to perform the repairs after settlement. An examination for wood borers is also needed.

FHA closing-cost assistance loan program for 1st time home-buyers

Neighborhood Housing Services of Greater Berks provides a settlement cost assistance loan to eligible low to moderate-income families buying a house in Berks County, including Reading. An FHA mortgage is needed. This support program collaborates with FHA-approved lenders.

Maximum Loan Amount - closing-costs and prepaid expenses

Interest-rate - Below Market Maximum (1/4% incentive for 5 Years or less term & with auto-debit payment)

Loan Term - 7 Years

Minimum Down Payment - 3.5% (FHA guidelines)

Debt to Income Ratios - 41%

Unpaid Collections - Not Permitted
Two Hour Budget & Settlement Counseling Required
* Fastrac Classes Encourage

Credit counseling & First Time Home Buyer Classes in Berks County PA