Pennsylvania Home Buyer

York County Down Payment & Closing Cost Assistance

Nice house with sold signThe County of York and City of York provide closing cost and down payment assistance to first time homebuyers. There are a few differences between these programs

These programs are designed to provide down payment & closing cost assistance to low to moderate income households in York County, Pennsylvania. The assistance is in the form of a 5 year forgivable loan to the buyer, secured by a second mortgage against the property.

York County will provide up to $5,000 in down payment and closing cost assistance. 2% of the eligible funding , based on sales price, towards down payment and the remainder towards eligible closing cost (does not include prepaid expenses (i.e. tax and homeowner's insurance escrow).

City will provide 2% of sales price toward down payment. Closing costs based on home sale price scale below. Not to exceed $7,000 in total down payment and closing cost assistance (does not include prepaids).

Sale price less than $40,000.00 Up to 8% of sales price $40,001-$60,000. Up to 7% of sales price $60,001 and up Up to 6% of sales price, not to exceed $7,000.00.

2% must go toward the down payment for both County and City Borrower can invest up to 20% of their own seasoned funds towards down payment. The buyer’s contribution policies do not apply to households obtaining subsidized financing through York Habitat for Humanity, or Rural Housing Services, or VA.

The assistance loan can be used in conjunction with VA, FHA, USDA and conventional first mortgage financing; or any other mortgage that is acceptable to the county or city providing the assistance loan.

Property York County homes only for County Program; and York City homes only for Requirements City Program

1. Must be served by existing public water and sewer;
2. Must be located in a borough, village or previously developed area;
3. Must be an existing unit (i.e.; a property, which has been occupied for a period of not less than one year from the date of the agreement of sale) exception for York Habitat for Humanity, Rural Housing Services and/or participating Community Housing Development Organization (CHDOs) as determined by the County and City.
4. Multi-units and mobile homes not permitted.
5. New Construction not permitted.
6. Flood Plain: not permitted for County loans. City will provide funding for properties located in flood plains provided the buyer obtains flood insurance and names the City as loss payee.
7. Home must be occupied by seller, buyer, or vacant at the time of execution of the Agreement of Sale. NO TENANT CAN BE DISLOCATED AS A RESULT OF THE TRANSACTION.

Borrower and Co- Proof of Residency/Identity - All borrowers and co-borrowers must be a U.S.

Proof of Residency and Identity - All borrowers and co-borrowers must be a U.S. citizens with an acceptable government issued photo ID and a valid Social Security number. Permanent resident aliens must have an acceptable green card through the entire affordability period.

First Time Homebuyer -
1. Is defined as a person who has not had an ownership interest in real estate within 3 years preceding application for assistance.

2. Single parent is an individual who is unmarried or divorced from a spouse and has 1 or more minor children for whom the individual has custody or joint custody or who is pregnant.

3. Displaced homemaker is an individual who is an adult who has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.

4. Has owned a manufactured home on leased land.

5. May have a non-occupying co-borrower but must meet income guidelines as determined yearly by HUD and must meet all other guidelines.

Down Payment - Borrowers must invest at least 3%, or $1,000.00, whichever is greater, of their own funds towards down payment & eligible closing cost. (The FHA loan program is ideal for this requirement)

Closing Costs/Gift buyer’s own funds or the buyer may have one-half of the contribution in the form of an unsecured gift subject to lender approval. Buyer may have gift for up to 3 months of reserve. County/City will not provide funding to cover more than three (3) total points on any loan.

Eligible Closing Costs - Eligible closing costs are the one-time costs associated with the sale of the property. Any continuing costs, such as property taxes, insurances and interest are items that a property owner will have to pay as an on-going expense after the property is purchased and are NOT eligible.

Income Limits - Total gross annual income for household may not exceed Federally established HOME Investment

York County Home Buyer and Credit counseling Programs

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