First time homebuyer program York PA

Nice houseFirst-time home buyers may get closing-cost and down payment help from the County of York and the City of York.

These programs are intended to help low-and moderate-income families in York County, Pennsylvania with down payment and closing-cost assistance.

Assistance is provided in the form of a loan to the buyer, which is secured by a second mortgage on the property. 

Income limits

The maximum household income is established at 80% of the county median income. To determine acceptable income, the gross income received by all family members from all income sources during the eight (8) week period immediately before the date of the primary loan application, projected forward for the next 12 months, shall be utilized.

Other methods of determining qualifying income will be used if it can be shown that the income of the household member during this time period does not represent their normal earnings history.

Household Members Annual Income
1 member $46,050
2 members $52,600
3 members $59,200
4 members $65,750
5 members $71,050
6 members $76,300
7 members $81,550
8 members $86,800

Maximum purchase price

As of 7/2021, the maximum purchase price for existing houses cannot exceed $171,00, or $238,000 for new build properties.

Credit score

Lower credit scores will be evaluated on a case-by-case basis; nevertheless, a minimum medium credit score of 620 is needed. If the applicant(s) do not have a credit score(s), they must have at least three open trade lines (utilities, rent payment history, mobile phone, auto insurance, etc.) with an acceptable 12-month payment history.

First-time home-buyer requirement

Is defined as an individual who has not owned real estate in the three years before the assistance application. If a borrower(s) previously co-owned a property with a former spouse (and are now divorced), he or she must be released from the prior deed and from the note and mortgage. The borrower and co-borrowers may not own any other real estate or business except the one from which they get their primary income. Co-borrowers who are not residents of the United States are not allowed.

The maximum loan amount and associated restrictions for first-time homebuyers are as follows:

York County:

Maximum Loan Amount:
2% of the purchase price for the down payment, and the remaining loan amount toward qualifying closing expenses (does not include escrows or pre-paids).

The maximum loan amount is $5,000.00.

Minimum Contribution from Borrower’s own funds:
1% of the purchase price, with a minimum of $1,000 (whichever is greater)
Minimum primary mortgage: 90% loan-to-value (LTV).
Maximum Loan-to-Value Ratio Combined: 108 percent CLTV

City of York:

Maximum Loan Amount:
Not to exceed 8% of the selling price if the sale price is less than $40,000
Sale price ranges from $40,001 to $60,001:
Not more than 7% of the sales price
Sale price of at least $60,001:
6% of the purchase price, up to a maximum of $7,000

Minimum Contribution from Borrower’s own funds:
1% of the purchase price, with a minimum of $1,000 (whichever is greater)
Minimum primary mortgage: 90% loan-to-value (LTV).
Maximum Loan-to-Value Ratio Combined: 108 percent CLTV

Note: The cap is structured as follows: 2% of the selling price goes toward the down payment, and the rest of the authorized loan goes toward qualifying closing expenses (excluding escrows or pre-paid(s)).

After closing, homebuyers may keep no more than $7,500.00 in cash reserves and no less than the equivalent of one month's mortgage payment.

Residency Requirement

Borrowers and co-borrowers must be United States citizens, permanent resident aliens, or non-permanent resident immigrants with a valid Social Security Number who are eligible to work in the United States and have a five-year clearing date from the settlement date.

Eligible Loan programs

The assistance loan may be combined with VA, FHA, USDA, and conventional first mortgage financing; or with any other mortgage that the county or city issuing the assistance loan deems appropriate.

Minimum Down Payment

Borrowers must provide at least $1,000.00 of their own money, whichever is higher, toward the down payment and applicable closing costs. (For this purpose, the FHA lending program is perfect.)

SOURCE: York Homebuyer Assistance Program Eligibility Requirements 

Credit Counseling & First Time Home Buyer Classes in York County PA