York County: First Time Home Buyer Program
First-time home buyers may get closing costs 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's median income. To determine acceptable payment, 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 payment of the household member during this
period does not represent their average 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 case-by-case; 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 excellent 12-month payment history.
First-time home-buyer requirement
It 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), they must be released from the prior deed and 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-paid).
The maximum loan amount is $5,000.00.
Minimum Contribution from Borrower’s 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
The sale price of at least $60,001:
6% of the purchase price, up to a maximum of $7,000
Minimum Contribution from Borrower’s 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,
conventional first mortgage financing, or 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
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