Down payment and closing cost assistance
If you’re buying a home in Delaware County, you’re in luck! The Delaware County Homeownership First Program provides home buyer counseling and up to $5,000 in down payment and closing costs assistance to qualifying first time homebuyers
The down payment and closing cost assistance grant is a 0% interest loan that is only repayable upon sale or transfer of the property. Borrowers will be evaluated based upon income, credit history, and available assets. The total assistance loan will not exceed $5,000. The down payment assistance is limited to an amount equal to 2% of the sales price of the home. Any excess funds will be applied to eligible closing costs if needed.
Homes must be purchased in the following communities:
Aston, Bethel, Brookhaven, Chadds Ford, Chester Heights, Concord, Edgmont, Marple, Media, Middletown, Nether Providence, Newtown, Radnor, Rose Valley, Springfield, Swarthmore, Thornbury, Upper Chichester and Upper Providence.
Eligible Properties include single family houses (detached, twin, rowhouse, townhouse or condominium) which are in compliance with Delaware County housing quality standards.
Special conditions apply to renter occupied properties, duplexes and properties that are located in and pay property taxes to Chester City, Haverford Township or Upper Darby Township.
Applicants must be must be 18 years of age or older, and have not owned property (or had a deed in your name) for three (3) years prior to the date of application. Displaced homemakers may also qualify.
Home buyers must contribute at least $1,000 towards the purchase of the home.
Household income must be at or below 80% of the median family income for Delaware County.
Prospective home buyers may not sign a sales agreement for any property
prior to undergoing group and individual counseling. Home buyer education
and counseling includes eight (8) hours of group homeownership counseling
and a minimum of one individual counseling. A Certificate of Achievement
will be issued to the applicant after the prospective home buyer(s) successfully
completes all items listed in their Action Plan.
Applicants are required to obtain a first mortgage from a reputable lender. First mortgages must be 30 year fixed, at or below market interest rate, with at least a 5% down payment.
The maximum sales price is $199,500
FREQUENTLY ASKED QUESTIONS:
Credit score or credit history will cause most mortgage applications to fail. Income and employment history also rank high for loan denial.
The mortgage lender is looking to see if the applicant has sufficient cash to cover the down payment and closing costs. The lender is also looking for any large deposits. Large, recent deposits often indicate borrowed money, and borrowed money cannot be used to pay for the down payment or closing costs.
The word escrow is certainly an odd word. When used in conjunction with another odd word, mortgage, the word escrow is a synonym for “savings account”. Banks and mortgage companies will “escrow” the property taxes and homeowner’s insurance. In short, the lender passes the property taxes and homeowners insurance into a savings account (escrow) that is set up to pay those bills when they come due. The escrow/savings account is account is partially funded at settlement and then monthly as part of the mortgage payment.
Hazard insurance is just another name for homeowners insurance.