Upper Darby First Time Homebuyers Program

House with a sold signThe First Time Home Buyer program in Upper Darby Township offers qualified buyers up to $6,000.00 in closing cost assistance.

The difference (gap) between the greatest amount a mortgage lender would give and the total purchase price determines the amount of assistance offered by the municipality.

The total purchase price includes the home's purchase price plus closing costs, as well as the buyer's necessary 3% down payment.

The total cost of the house cannot exceed $136,000. This program requires that an applicant wait 5 years from the date of settlement before applying for a housing rehabilitation grant under the Township Program. Furthermore, the financing DOES NOT APPLY TO MULTI-FAMILIES (e.g., duplexes, etc.), but only to single-family homes (i.e., row home, twin, single). This overview will give you a general idea of the software. Please read the summary carefully and take your time.

Who qualifies for the Upper Darby Township First-Time Home Buyer Program?

Annual household income - Applicants must have an annual household income of less than 80% of the Pittsburgh Metropolitan Statistical Area (MSA) Median Family Income, as determined by HUD and adjusted for family size.

The household size refers to the number of persons who will reside in the housing unit purchased with the assistance of the Home Buyer Assistance Program.

Annual income is calculated using the sum of the amounts on your previous year's Federal Tax Return, W-2, and 1099 forms, which you must provide with your application. Unless they are a full-time student, everyone in the family who is 18 years old or older must disclose their earnings. (If a student is buying a home, the income of the student must be disclosed.) Earnings of those under the age of 18 are not counted.

Homebuyer for the First Time - Any low-income household that has not bought a property in the preceding three (3) years is considered a "first-time home buyer."
If a "displaced homemaker" or "single parent" meets HUD's requirements, certain families who have owned a home in the previous three (3) years may be eligible.

The buyer must be a US citizen or a permanent resident immigrant who has lived in the US for at least five (5) years and can prove it.

Lender - The purchaser is responsible for obtaining a mortgage.

Prior to the Township entering into a commitment, the lender MUST attest to the Township that the proposed mortgage loan amount is the maximum amount the borrower(s) may carry based on monthly cash availability as determined by the Bank's underwriting.
The lender must complete and submit the accompanying form with your application.

Property requirements - Single-family, vacant, or owner-occupied properties in Upper Darby Township are eligible.

Rental properties are eligible for this program only if they are vacant at the time of the sale or if the buyer is an existing tenant.
Duplexes and other multi-unit dwellings are excluded.
Please bear in mind that the properties must be located entirely within the Township boundaries, not only inside 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 ANYWHERE INSIDE OR OUTSIDE OF THE PROPERTY.

Principal Residence – The purchaser must use the property as their primary home.
Any breach of the primary residence criterion will result in automatic payback of the Township's subsidy.

Buyer/Real Estate Agent - Before signing a completed purchase contract, the buyer or buyer's Realtor must speak with the Upper Darby Township office of Community Development.

Other Requirements - There is no requirement that the home-buyer remain income eligible after purchase.

Affordability Conditions - Buyers are required to use the property as their primary home for the length of the agreement; no leasing or renting is allowed.
Any breaches of the primary residence criterion will result in automatic repayment of the Township's debt.

There is no forgiveness of the township mortgage for the first four (4) years from the date of settlement. The full amount on this loan is due to Upper Darby Township upon 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 other unforeseen causes. The Buyer must maintain fire insurance on the property for the term of the agreement, which names Upper Darby Township as a lien holder. Prior to or at the time of settlement, a certificate of insurance demonstrating this must be provided.

The Upper Darby Township mortgage will be forgiven at a rate of 16.67 percent per year beginning with the fifth year and ending with the tenth year. The mortgage will be fully dissolved and eliminated at the end of the tenth year (from the settlement date). There is no payment required.