The First Time Homebuyers Program provides funds in the form of
both an interest free down payment loan and a closing cost grant to
income eligible, first time homebuyers who wish to purchase a single
family residence in Lackawanna County.
The program offers down payment subsidy of up to 15% (not to exceed $18,000) of the mortgaged loan with a minimum of 5% (verified) required from home buyer(s) assets.
The 15% down payment assistance loan will be secured as an interest free loan. Any sale or transfer of the property will subject the home buyer to full repayment within the first 10 years from the closing date. The loan will be forgiven after the 10 year period. Closing cost subsidies will be in the form of a grant, not to exceed $1,200.
All program participants will be required to certify the availability of funds for required minimum 5% down-payment. Those contributions shall not be borrowed or encumbered funds (i.e., funds the program beneficiary must repay to a third party).
Participants are required to attend credit and housing counseling sessions, obtain pre-qualification for a mortgage loan and have their chosen house inspected by a certified housing inspector.
Participants must have verified annual gross household incomes at or
below 100% median income currently established for Lackawanna
The home purchased must be within the County of Lackawanna (City
of Scranton not included),
The maximum purchase price for a home is $150,000 and the liquid asset limit will be capped at $25,000.
Home purchased must be a first home for program participants (i.e., buyers must not have owned a home for at least three years).
Also, the home purchased must become the PRIMARY RESIDENCE of the applicant(s).
The home to be purchased must be a single family structure (i.e., Single family unit, townhouse, condominium, modular unit, or 1/2 of a separately deeded duplex).
Home to be purchased cannot be a manufactured home (i.e. mobile home).