Centre County First-Time Home Buyer Program

The Centre County First-Time Home Buyer Program provides up to $10,000 in down payment and closing cost assistance to help qualified first-time buyers achieve homeownership. Administered by the Centre County Commissioners in partnership with participating banks and lenders throughout the county, the program makes homeownership more accessible to working families and individuals who have the income and creditworthiness to qualify for a mortgage but lack sufficient savings to meet traditional down payment requirements.

Program Overview

The Centre County First-Time Home Buyer Program is a countywide initiative designed to help first-time homebuyers overcome the financial barriers that often prevent them from purchasing a home. The program provides direct assistance with down payment and closing costs, reducing the amount of cash buyers need to bring to closing. By partnering with multiple banks and lenders throughout Centre County, the program ensures that qualified buyers have access to both assistance funding and mortgage financing from reputable financial institutions.

Contact Information:
Centre County Commissioners Office
Centre County, Pennsylvania
Website: centrecountypa.gov/218/First-Time-Home-Buyer-Program

For more information, contact any of the participating lenders listed below or reach out to Housing Transitions (HT), a nonprofit organization that offers first-time homebuyer assistance throughout Centre County.

Available Assistance

Assistance Amounts

The Centre County First-Time Home Buyer Program provides down payment and closing cost assistance up to a maximum of $10,000, or 10% of the purchase price, whichever is less. This means your actual assistance amount depends on the price of the home you are purchasing. For lower-priced properties, the 10% calculation may result in assistance less than $10,000. For higher-priced properties, assistance is capped at $10,000.

The assistance is applied directly to your down payment and closing costs, reducing the amount of cash you need to bring to closing. This can mean the difference between being able to afford homeownership and remaining a renter.

Down Payment Requirements

To qualify for the program, you must contribute a minimum of 2% to 3% of the purchase price as your own down payment. This demonstrates your personal commitment to the purchase and ensures you have skin in the game. The program assistance then helps cover additional down payment needs and closing costs beyond your initial contribution.

Eligibility Requirements

To qualify for the Centre County First-Time Home Buyer Program, you must meet all of the following eligibility criteria:

First-Time Homebuyer Status

You must be a first-time homebuyer, defined as someone who has not owned a home in the past 3 years. This definition allows individuals who owned a home more than three years ago to qualify, as well as those who have never owned before. Additionally, single parents who are legally separated and have joint or full custody of one or more minor children are eligible to apply, even if they have previously owned a home.

Income Limits

Your household income must not exceed the program's income limits. The program targets households earning 60-80% of the area median income. Specific income limits vary based on household size:

Household Size	Maximum Annual Income
1 person	$40,875
2 people	$46,750
3 people	$52,562
4 people	$58,375
5 people	$63,062

Note: Income limits may be updated periodically. Contact the Centre County Commissioners' office or a participating lender to confirm current income limits for your household size.

Primary Residence Requirement

You must intend to occupy the property you are purchasing as your principal residence. The program is designed to help owner-occupants achieve homeownership, not to assist investors or second-home buyers. You cannot purchase the home as an investment property or vacation home.

Homeownership Training Requirement

You must participate in homeownership training before closing on your home purchase. This training educates first-time buyers on the responsibilities and realities of homeownership, helping ensure you are prepared for successful homeownership. Training may be offered through local housing nonprofits or counseling agencies in Centre County, such as Housing Transitions.

Professional Home Inspection

You must obtain a professional home inspection on the property you are purchasing. This inspection protects you as a buyer by identifying any major issues with the property before you close. The inspection provides critical information about the home's condition and any needed repairs.

Mortgage Qualification

You must qualify for a mortgage with one of the program's participating lenders. You must meet standard lending criteria, including credit score minimums, debt-to-income ratio requirements, and other mortgage qualification standards. The program does not guarantee mortgage approval; it only provides down payment and closing cost assistance.

Minimum Down Payment Contribution

You must contribute 2-3% of the purchase price toward your down payment using your own funds. This personal contribution demonstrates your commitment to the purchase and ensures you have equity at risk in the property from the start.

Participating Lenders

The Centre County First-Time Home Buyer Program partners with multiple banks and mortgage lenders throughout the county. By working with any of these participating lenders, you can access both mortgage financing and down payment assistance through a single application process. The participating lenders are:

AmeriServ Bank - 1-800-837-2265
Citizens Bank - 814-380-0160
Core Mortgage Services, Inc. - 814-272-0125
Fulton Bank - 814-272-0166
Jersey Shore State Bank - 814-235-1710
Kish Bank - 814-861-5500
M&T Bank - 814-234-5791
Mortgage Source - 814-234-1477
Northwest Savings Bank - 814-353-1222
PNC Bank - 814-235-0535
Reliance Savings Bank - 814-235-6468
Wells Fargo - 814-238-4100

Application Process

Step 1: Review Program Requirements and Confirm Eligibility

Before applying, review the program requirements and confirm that you meet all eligibility criteria. Pay particular attention to income limits, first-time homebuyer status, and the requirement to contribute 2-3% of the purchase price as your own down payment. If you have questions about your eligibility, contact one of the participating lenders or Housing Transitions.

Step 2: Complete Homeownership Training

Enroll in and complete a homeownership training program. Training courses are available through Housing Transitions and other local housing nonprofits in Centre County. The training covers the basics of homeownership, financial management, understanding mortgages, home maintenance, and what to expect during and after the homebuying process. Training must be completed before closing on your home purchase.

Step 3: Connect with a Participating Lender

Choose one of the program's participating lenders and contact them to discuss your homebuying plans and interest in the down payment assistance program. The lender will explain the mortgage options available to you and how the down payment assistance will be applied. The lender can also advise you on how much home you can afford based on your income, down payment, and available assistance.

Step 4: Obtain Mortgage Pre-Approval

Work with your chosen lender to obtain pre-approval for a mortgage. The lender will review your income, credit, assets, and debts to determine how much you can borrow. Pre-approval demonstrates to sellers that you are a serious buyer with financing in place. During this process, the lender will also help you understand how the down payment assistance will work with your mortgage.

Step 5: Find a Home and Make an Offer

Begin searching for a home that meets your budget and needs. Once you find a property you want to purchase, work with a real estate agent to negotiate and make an offer. Ensure the property is located in Centre County and meets program requirements (a single-family home and a primary residence).

Step 6: Professional Home Inspection

Once your offer is accepted, hire a professional home inspector to conduct a thorough inspection of the property. The inspection report will identify any major issues, repairs needed, or concerns about the property's condition. This inspection protects you as a buyer and provides information to help you make an informed decision about whether to proceed with the purchase.

Step 7: Loan Processing and Underwriting

Your lender will process your mortgage application and begin underwriting. During this phase, the lender verifies your income, employment, assets, credit, and the property details. The down payment assistance program will also be processed during this time. This phase typically takes 2-4 weeks.

Step 8: Closing

Once your loan is approved and all conditions are met, you will proceed to closing. At closing, the down payment assistance funds are disbursed to the title company, your mortgage funds are disbursed, and all closing documents are signed. You will receive the keys to your new home and become a homeowner.

Important Program Details

Countywide Availability

The Centre County First-Time Home Buyer Program is available countywide. This means you can purchase a home anywhere in Centre County and still qualify for assistance. The program is not limited to specific municipalities or neighborhoods.

Funding Availability

Program funding comes from Act 137 funds and has an average annual budget. Assistance is provided based on available funding. While the program is ongoing, it's advisable to apply early in your homebuying process to ensure funding is available when you are ready to close.

Purpose of Assistance

The program assistance must be used for legitimate down payment and closing cost purposes. Funds cannot be diverted to other uses or extracted as cash at closing. This requirement ensures the program's funds are used responsibly and appropriately.

Program Administration

The Centre County Commissioners administer the program in partnership with participating lenders. This collaboration ensures that both the assistance funding and mortgage financing are coordinated efficiently, making the process smoother for buyers.

Additional Centre County Housing Resources

Beyond the First-Time Home Buyer Program, Centre County residents may have access to additional housing resources:

Housing Transitions (HT)

Housing Transitions is an independent nonprofit organization that provides housing programs and supportive services throughout Centre County. HT offers multiple programs, including emergency housing services, first-time homebuyer assistance, transitional housing, and an emergency food pantry. HT can provide homeownership counseling and guidance on available programs.

Pennsylvania Housing Finance Agency (PHFA)

PHFA offers statewide home purchase loans with competitive interest rates and lower fees. Some applicants may qualify for additional down payment and closing cost assistance through PHFA programs. Contact PHFA directly or ask your lender about PHFA loan options.

USDA Rural Development

USDA provides homeownership opportunities to rural Americans, including financing and home renovation/repair programs. If you are purchasing in a rural area of Centre County, you may be eligible for USDA financing, which offers favorable terms for rural homebuyers.

Frequently Asked Questions

What if my income is slightly above the limit?

Income limits are firm eligibility requirements. If your household income exceeds the limit for your household size, you do not qualify for this program. However, you may be eligible for other programs through PHFA or participating lenders. Contact a lender to explore alternatives.

Can I use this program with other assistance programs?

The Centre County First-Time Home Buyer Program may be compatible with other programs. Discuss your situation with a participating lender or Housing Transitions to understand what combinations of assistance are available to you.

How much home can I afford with this assistance?

The amount of home you can afford depends on your income, credit, available down payment (including the program assistance), and the mortgage amount you can qualify for. A participating lender can help you determine your purchasing power based on your specific financial situation.

What if I have bad credit?

Credit requirements vary by lender. While most lenders prefer good credit, some may work with borrowers with less-than-perfect credit histories. Contact participating lenders to discuss your credit situation and explore your options.

What if I need to sell before the affordability period ends?

The program details regarding any repayment obligations if you sell early should be discussed with your lender and clarified in your loan documents. Different lenders may have different terms. Contact the lender administering your loan for specific information about your obligations.

Can I use this program for a second home or investment property?

No. The program is strictly for primary residence purchases. The property must be your principal place of residence, not a vacation home, second home, or investment property.

Getting Started

To apply for the Centre County First-Time Home Buyer Program, contact a participating lender listed above or reach out to Housing Transitions for guidance and counseling. Begin by confirming your eligibility, completing homeownership training, and discussing your situation with a lender. The earlier you start the process, the better prepared you will be to take advantage of this valuable program.

Centre County Commissioners
Website: centrecountypa.gov/218/First-Time-Home-Buyer-Program

Housing Transitions (HT)
First-time homebuyer assistance and counseling services

Conclusion

The Centre County First-Time Home Buyer Program removes a significant financial barrier to homeownership for income-qualified first-time buyers throughout the county. By providing up to $10,000 in down payment and closing cost assistance in partnership with reputable local lenders, the program helps working families and individuals achieve the dream of homeownership. If you meet the eligibility requirements and are ready to become a homeowner, this program can provide the financial support you need to achieve homeownership.

Credit counseling & First Time Home Buyer Classes in Centre County, PA