Scranton, Lackawanna County, City of Carbondale, Monroe County
Home Buyer Programs

NeighborWorks Northeastern Pennsylvania administers homebuyer assistance programs across multiple jurisdictions in the region, helping first-time homebuyers achieve homeownership through forgivable, deferred payment loans. These programs provide financial assistance with down payments and closing costs for qualified applicants.

About NeighborWorks NEPA

NeighborWorks Northeastern Pennsylvania is a HUD-approved housing counseling agency that has served the region for 40 years. The organization is a chartered member of NeighborWorks America, an approved agency for the Pennsylvania Housing Finance Agency's Comprehensive Housing Counseling Initiative, and an endorser of the National Industry Standards for Homeownership Counseling.

Contact Information:
815 Smith Street
Scranton, PA 18504
Phone: (570) 558-2490
Email: intake@nwnepa.org
Hours: Monday–Friday, 9:00 AM – 4:30 PM

Homebuyer Programs Overview

NeighborWorks NEPA administers homebuyer assistance programs in four jurisdictions: the City of Scranton, Lackawanna County, Carbondale, and Monroe County. All programs offer forgivable, deferred payment loans to help eligible first-time homebuyers with down payment and closing cost expenses.

City of Scranton Homebuyer Program

Program Details

• Minimum Assistance: $5,000
• Maximum Assistance: $20,000 (capped at 10% of purchase price)
• Loan Type: Forgivable, deferred payment loan
• Geography: City of Scranton only

Eligibility Requirements

• First-time homebuyer status
• Income must not exceed HUD area median income guidelines (varies by household size)
• Approval based on adjusted household income (deductions may apply)
• Able to qualify for a mortgage from a participating lender
• Primary residence purchase only

Income Limits for City of Scranton (2026)

Household Size	Maximum Income
1 person	$41,550
2 people	$47,450
3 people	$53,000
4 people	$59,300
5 people	$64,050
6 people	$68,800
7 people	$73,550
8 people	$78,300

Note: Income limits are based on HUD area median income guidelines and update annually in June. Contact NeighborWorks NEPA for current income thresholds.

Lackawanna County Homebuyer Program

Program Details

• Minimum Assistance: $7,500
• Loan Type: Forgivable, deferred payment loan
• Availability: First-come, first-served basis
• Geography: Lackawanna County (excludes City of Scranton)

Eligibility Requirements

• First-time homebuyer status
• Income at or below 100% of HUD area median income
• Approval based on adjusted household income (deductions may apply)
• Able to qualify for a mortgage from a participating lender
• Primary residence purchase only

Income Limits: Lackawanna County income limits are higher than those for the City of Scranton program. View current income limits at HUD's Income Limits Portal.

City of Carbondale Homebuyer Program

Program Details

• Minimum Assistance: $5,000
• Maximum Award: 10-15% of home purchase price
• Loan Type: Forgivable, deferred payment loan
• Geography: City of Carbondale only

Eligibility Requirements

• First-time homebuyer status
• Income at or below HUD area median income guidelines
• Approval based on adjusted household income (deductions may apply)
• Able to qualify for a mortgage
• Primary residence purchase only

Monroe County Homebuyer Program

Program Details

• Minimum Assistance: $5,000
• Loan Type: Forgivable, deferred payment loan
• Availability: First-come, first-served basis
• Geography: Monroe County

Eligibility Requirements

• First-time homebuyer status
• Income at or below HUD area median income
• Approval based on adjusted household income (deductions may apply)
• Able to qualify for a mortgage
• Primary residence purchase only

What is a Forgivable, Deferred Payment Loan?

A forgivable, deferred payment loan means the homebuyer receives assistance funds that do not require monthly payments. The loan is secured by a mortgage or deed of trust placed on the property. If the homebuyer stays in the home as their primary residence and meets program requirements, the loan is eventually forgiven. If the home is sold, refinanced, or no longer serves as the primary residence before the forgiveness period ends, a prorated portion of the assistance may need to be repaid.

Application Process and Steps to Homeownership

Step 1: Complete Homebuyer Education

All applicants must complete homebuyer education before applying for program assistance. NeighborWorks NEPA offers multiple options:

• In-Person Workshops: Free group homebuyer education workshops covering topics like budgeting, credit, mortgage shopping, home inspections, insurance, and life after closing. View the events calendar and register at nwnepa.org/news-events/events.html
• Online Course: Virtual homebuyer education course through eHome America available at ehomeamerica.org/nwnepa. Participants can complete the course on their own schedule. Contact NeighborWorks NEPA at (570) 558-2490 to inquire about discount codes or ways to make the course free.

Step 2: Meet with a HUD-Certified Housing Counselor

After completing homebuyer education, applicants must meet one-on-one with a HUD-Certified Housing Counselor. During this session, the counselor will:

• Review your credit report and credit score
• Analyze your budget and household finances
• Discuss mortgage affordability and loan eligibility
• Review program eligibility and available assistance
• Answer specific homebuying questions and concerns
• Discuss personalized tips for purchasing in the local market

These one-on-one sessions are provided at no cost. Call (570) 558-2490 to schedule an appointment.

Step 3: Complete Application

After completing both homebuyer education and a counseling session, applicants are eligible to receive a formal program application. Submit the completed application to NeighborWorks NEPA for processing.

Step 4: Receive Mortgage Pre-Approval

Obtain pre-approval for a first mortgage from one of NeighborWorks NEPA's participating lenders or other approved lenders in the area.

Step 5: Find Your Home and Purchase

Once pre-approved and receiving down payment assistance funding, you can begin searching for and purchasing your home.

Additional NeighborWorks NEPA Services

Financial Coaching and Credit Repair

NeighborWorks NEPA offers free financial coaching services including:

• Free credit report review (does not affect credit score)
• Credit repair services to address outstanding credit issues
• Budget analysis and income/expense evaluation
• Ongoing access to certified financial coaches
• Personalized resources and guidance

Financial coaches are certified in credit repair, budgeting, managing debt, and working toward financial goals.

Pathways to Homeownership Program

For those with long-term homeownership goals, NeighborWorks NEPA offers the Pathways to Homeownership program covering financial education topics such as:

• Setting SMART financial goals
• Identifying personal assets and connecting them to employment
• Evaluating financial resources
• Reviewing employer benefits and risks
• Savings strategies and commitment planning
• Credit building and management strategies

Important Considerations and Deadlines

• First-Come, First-Served: Lackawanna County and Monroe County programs operate on a first-come, first-served basis. Early application is important to secure funding.
• Annual Income Limit Updates: Income guidelines are based on HUD area median income, which updates annually in June. Contact NeighborWorks NEPA for current limits.
• Primary Residence Requirement: All programs require the purchased home to serve as your primary residence.
• Affordability Period Restrictions: If the home is sold, transferred, or refinanced within the affordability period, HUD recapture regulations may apply and a portion of assistance may require repayment.
• Mortgage Qualification Required: Applicants must be able to qualify for a first mortgage to participate in these programs.

Frequently Asked Questions

What does "first-time homebuyer" mean?

Generally, a first-time homebuyer is someone who has not owned (held title to) a home as their primary residence in the past three years. Some exceptions may apply for targeted area purchases or qualified veterans.

Are there income deductions available?

Yes. Approval is based on adjusted household income, and you may qualify for deductions that lower your adjusted income. Speak with a NeighborWorks NEPA counselor about your specific situation.

Can I use gift money for my down payment?

Program rules vary by jurisdiction. Contact NeighborWorks NEPA to discuss your circumstances.

How long does the application process take?

The timeline depends on how quickly you complete homebuyer education and counseling sessions, submit your application, and obtain mortgage pre-approval. On average, the process takes several weeks to a few months.

What if I am purchasing outside Scranton, Lackawanna County, Carbondale, or Monroe County?

If you are purchasing outside these service areas, NeighborWorks NEPA's HUD-Certified Housing Counselors can connect you with other available programs based on your unique needs and location.

Getting Started

Ready to take the next step toward homeownership? Contact NeighborWorks NEPA today:

Phone: (570) 558-2490
Email: intake@nwnepa.org
Website: nwnepa.org
Address: 815 Smith Street, Scranton, PA 18504

Visit the events calendar to register for an upcoming homebuyer workshop, or call to schedule a one-on-one counseling session. NeighborWorks NEPA staff will help you understand which programs you may qualify for and guide you through the homebuying process.

Conclusion

Owning a home is a significant achievement, and NeighborWorks NEPA's homebuyer assistance programs help make that dream possible for income-eligible first-time buyers across Northeastern Pennsylvania. By providing down payment and closing cost assistance through forgivable loans, coupled with expert homebuyer education and counseling, NeighborWorks NEPA empowers buyers to make informed decisions and successfully achieve homeownership.

NeighborWorks NEPA is a certified HUD-approved housing counseling agency