Pennsylvania Home Buyer

Adams County Closing Cost & Down Payment Assistance Program

House with sold signEveryone desires to own a house, but purchasing a home requires a down payment and a little extra cash for the closing costs. If you're thinking about purchasing a home in Adams County, you’re in luck. The Pennsylvania Interfaith Community Programs, Inc and Adams County Housing Authority provide eligible homebuyers with low interest rate loans from $2,000 to $7,000 for their closing costs or down payment.

Applicants must be first time homebuyers and meet household income that is at or below the HUD low to moderate household income limits for Adams County. The applicant(s) are required to be a US citizens or permanent residents. Prospective homebuyers must be over 18 years of age and have the legal capacity to incur the loan obligations.

Applicants must occupy the home. No investors. The prospective home buyer(s) must be approved for a mortgage on the property to be purchased.

Home buyers cannot have tangible assets that exceed lenders reserve requirement or $1200 which ever is greater. Tangible assets include savings accounts, checking accounts and certificates of deposit, bonds, stocks, et cetera.

Applicants are required to attend home buyer education classes provided by PICPI and ACHA.

Repayment Of Assistance

A second mortgage will be placed on the home after closing for the amount of the down payment (or closing costs). The down payment and/or closing cost assistance loan is required to paid monthly until the loan is paid in full or when the home is sold.


Why do I have to pay mortgage insurance?

Confused emoticonMortgage insurance is required on the government backed home loans, specifically, FHA, VA, and USDA mortgages to establish a “bailout” fund for mortgage lenders. Here’s why you’re required to pay mortgage insurance on government loans. Everyone who takes out an FHA, VA, or USDA pays a percentage of the loan amount at closing/settlement as a condition of obtaining the mortgage money. After closing, the bank or mortgage company sends the “extra” fee to either the FHA, VA or USDA. The government agencies use money to buy back defaulted mortgages from lenders. On conventional home loans (not government supported), lenders require a 20% down payment. If the homebuyer is unable to put down 20%, the lender uses a "private mortgage insurance" company to guarantee the difference between your down payment and the required 20% down payment. If your down payment is only 5%, the PMI company will guarantee the missing 15%. A fifteen percent down payment requires 5% mortgage insurance premium. No mortgage insurance is required on conventional loans with a twenty percent down payment.

What are all the closing costs when buying a home in Pennsylvania?

Animated cash registerThere are a lot of costs when you purchase a home in PA. Let’s look at some of the costs you are likely to incur. The first cost that will jump out at you is the transfer tax. In PA, the State of Pennsylvania charges 1% of the sales price. Think of the transfer tax as a sales price on property transfers. Most local municipalities (.5%) and school districts (.5%) also charge 1% combined. There are a few exceptions - some municipalities/school districts charge more. Title insurance is a cost that is regulated in Pennsylvania. Title insurance is necessary to make sure that the real estate taxes are paid up and the seller is giving you a clean title to the property. The lender requires numerous costs to process the loan (i.e. credit report, appraisal, processing, underwriting, etc.). The lender fees can total more than $1,500. You can estimate your closing costs with the PA mortgage calculator

What is an adjustable mortgage?

There was a time when mortgage interest rates where over 12% . . . and climbing. Needless to say, the high interest rates crippled the housing and lending industries. People wanted to buy houses, but the high interest rates resulted in high mortgage payments. Our friends, the banks, came up with a novel idea. What if we lowered the initial interest rate and then allowed the interest rate to go up or down based on a convoluted formula beneficial to the banks. This is the adjustable rate mortgage. Your initial interest rate, called the teaser rate, is lower than the prevailing fixed interest rate, but after 12 months, the interest rate is subject to “adjustment”.

How much does it cost to buy a house in Pennsylvania?

Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.Closing cost calculator

First time home buyer classes listed by county

Learn about Pennsylvania's home buying programs. Read more

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