Cumberland County First-Time Homebuyer Program

The Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program helps working families achieve homeownership by providing up to $5,000 in down payment and closing cost assistance. Through a unique 3-to-1 matching formula, the program rewards your savings and provides forgivable loan assistance with full forgiveness after five years of homeownership.

Program Overview

The Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program is administered by the Redevelopment Authority of Cumberland County and offers innovative financial assistance designed to make homeownership achievable for low- and moderate-income families. The program's signature feature is its 3-to-1 matching structure, which leverages buyer savings into substantial program assistance.

Contact Information:
Redevelopment Authority of Cumberland County
114 North Hanover Street
Carlisle, PA 17013
Contact: Sue Dunfee
Phone: 717-249-0789 Ext. 171
Email: sdunfee@cchra.com
Website: cchra.com

Available Assistance

Assistance Amounts Based on Income

The program provides different levels of assistance based on your household income relative to the county's median income:

• For households with gross annual income less than 80% of county median income: Up to $5,000 in assistance
• For households with gross annual income between 80% and 100% of county median income: Up to $3,000 in assistance

The 3-to-1 Match Formula

One of the most attractive features of this program is the 3-to-1 matching structure. For every $1 of your own savings that you contribute toward the purchase, the program provides $3 in assistance. This matching formula means your personal savings are multiplied three times over. For example, if you contribute $1,000 of your own funds toward your down payment and closing costs, the program will provide $3,000 in matching assistance (up to the maximum limits based on your income level).

This structure incentivizes savers and rewards those who have been able to accumulate funds for homeownership. Even modest savings can translate into substantial assistance when matched at this 3-to-1 ratio.

Loan Structure and Forgiveness

The assistance is provided in the form of a five-year, no-interest, forgivable loan. A grant agreement is executed and recorded with the county, securing the program's interest in the property through a second mortgage or lien. However, you will not be required to make monthly payments on this assistance. Instead, 1/60 of the loan amount is automatically forgiven each month. After exactly five years of homeownership (60 months), the entire award is forgiven and the county's lien is released from the property.

This forgivable structure means that if you successfully maintain your home as your primary residence for five years, you will not repay any of the program assistance. The loan is designed to help you get into homeownership, not to create a long-term debt burden.

Eligibility Requirements

To qualify for the Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program, you must meet all of the following eligibility criteria:

First-Time Homebuyer Status

You must be a first-time homebuyer. This is generally defined as someone who has not owned a home in the past three years. If you are returning to homeownership after an extended period of renting, you may still qualify. Contact the Redevelopment Authority to discuss your specific situation.

Cumberland County Residency or Employment

You must have lived or worked in Cumberland County for at least six months prior to submitting your application. This requirement ensures the program benefits individuals with an established connection to the community. You do not need to have both lived and worked in the county—either residency or employment for the required six months satisfies this requirement.

Income Limits

Your gross household income must not exceed 100% of Cumberland County's median income. The specific income limit for your household size will be provided by the Redevelopment Authority. Contact Sue Dunfee at the information above to confirm current income limits for your household size, as these limits are updated annually.

Household Assets

Your household's total assets must not exceed $30,000 after settlement. This means the value of all your liquid assets (savings, investments, etc.) plus any other countable assets cannot exceed this threshold after you have closed on your home purchase.

Contribution Limits

You cannot contribute more than $15,000 total toward the purchase of your home. This limit includes your own down payment funds, seller assistance, gift funds, and any lender assistance. This cap ensures the program assists those with genuine financial need rather than those with substantial resources.

Own Funds Requirement

The funds you contribute toward the purchase must be your own funds—not gifts, seller assistance, or borrowed money (at least not entirely). You must provide satisfactory evidence of the funds you intend to match. The program verifies that the funds you are matching are genuinely your own savings or assets before providing the matching assistance.

Mortgage Qualification

You must supply a current pre-approval letter from a lender demonstrating that you can qualify for a mortgage. The program does not guarantee mortgage approval; you must meet standard lending requirements including credit score minimums and debt-to-income ratios. However, the down payment assistance itself can help you qualify for a larger mortgage or reduce your required down payment percentage.

Homebuyer Workshop Completion

You must complete the Cumberland County Housing and Redevelopment Authority's First-Time Homebuyer Workshop before settlement. This workshop is free and covers essential topics for new homeowners. A certificate of completion is required before you can settle on your home purchase.

Primary Residence Intent

You must intend to occupy the property as your primary residence. The program is designed to help owner-occupants achieve homeownership, not to assist investors or second-home purchases.

The Cumberland County First-Time Homebuyer Workshop

The Cumberland County Housing and Redevelopment Authority offers free homebuyer education workshops designed to prepare first-time buyers for the homebuying process. The workshop is approximately 7 hours in total length and is typically conducted in two sessions of 3.5 hours each.

Workshop Topics

The workshop covers essential topics including budgeting and financial preparation, understanding credit and credit scores, exploring loan options and mortgage types, working with real estate agents, home inspections and appraisals, homeowners insurance, understanding closing costs, and what to expect after closing and as a new homeowner.

Workshop Schedule and Location

Workshops are held at least once a month in both evening and Saturday sessions to accommodate different schedules. The current location is Cumberland Connection, 219 N Pitt Street, Carlisle, PA 17013. To register for a workshop or obtain current schedule information, contact the CCHRA at 717-249-0789 Ext. 171 or visit cchra.com.

Certificate Validity

Your workshop completion certificate is generally valid for one year from the date of issue. However, some lenders or assistance programs may have different timeframes or additional requirements, so confirm the validity period with your lender and the program administrator.

Application Process

Step 1: Confirm Eligibility and Gather Documentation

Before applying, verify that you meet all eligibility requirements. Gather documentation of your Cumberland County residency or employment (utility bills, pay stubs, or lease), proof of income (recent pay stubs, tax returns), verification of liquid assets (bank statements), evidence of your own funds available for matching, and any other required documentation. Contact Sue Dunfee if you have questions about documentation requirements.

Step 2: Register for and Complete the Homebuyer Workshop

Register for the free First-Time Homebuyer Workshop offered by the CCHRA. Attend both required sessions (each 3.5 hours) within the same month to receive your certificate of completion. You must have your certificate before you can submit an application or settle on a home purchase.

Step 3: Obtain Mortgage Pre-Approval

Work with a lender to obtain pre-approval for a mortgage. You will need to supply a current pre-approval letter from the lender with your program application. The lender will verify your creditworthiness, income, and ability to repay the mortgage.

Step 4: Submit Program Application

Complete and submit the application for the Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program. Include all required documentation: workshop completion certificate, mortgage pre-approval letter, proof of income, verification of assets, evidence of your matching funds, proof of residency or employment, and any other requested documentation. Applications can be obtained from the CCHRA website or by contacting Sue Dunfee.

Step 5: Application Review and Approval

The CCHRA will review your application for eligibility. Allow approximately two weeks from submission for processing and eligibility determination. You will receive notification of approval or any additional information needed.

Step 6: Acceptance and Home Search

Upon approval, you will receive an approval letter specifying the amount of assistance you qualify for. You must sign and return this letter within two weeks of notification, accepting the assistance. Upon acceptance, you have up to six months to close on a mortgage for your home purchase in Cumberland County.

Step 7: Closing

At closing, the program assistance is disbursed and applied toward your down payment and closing costs. A grant agreement and second mortgage/lien are recorded to secure the program's interest. You are responsible for paying the $36 recording fee for the release of the lien when the five-year forgiveness period is complete. The Redevelopment Authority of Cumberland County will be listed as second mortgagee on your homeowners insurance declaration.

Important Program Details

Eligible Properties

You may use this assistance to purchase single-family homes of any price in Cumberland County. The program also considers loans for manufactured or factory-built homes, provided the home was built under Federal Manufactured Home Construction and Safety Standards established on June 15, 1976.

Forgiveness Terms

The loan is fully forgiven after five years if you continue to occupy the home as your primary residence. No monthly payments are required. The forgiveness is automatic—the lien will be released after the five-year period has passed.

Early Payoff and Refinancing

If you sell or refinance your home before the five-year forgiveness period expires, you may be required to repay a portion of the assistance, depending on the program's recapture provisions and your specific situation. Contact the Redevelopment Authority to understand your repayment obligations if you need to sell or refinance early.

Funding Availability

The number of applicants chosen to receive assistance each year depends on the annual Affordable Housing Trust Fund allocation. Funds are awarded on a first-come, first-served basis and are subject to availability. Applications are accepted throughout the year, but applying early is recommended to secure funding.

Who Should Apply?

The Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program is ideal for:

• First-time homebuyers who have modest savings and want to multiply that savings through the 3-to-1 match
• Low- and moderate-income families earning below county median income who are ready for homeownership
• Working families in Cumberland County with stable employment and income but limited down payment savings
• Individuals returning to homeownership after renting for several years
• Savers who want to leverage their disciplined savings into a larger assistance package

Frequently Asked Questions

How does the 3-to-1 matching work?

For every $1 of your own funds you contribute to the purchase, the program provides $3 in matching assistance. For example: $1,500 of your own funds × 3 = $4,500 in program assistance. The total assistance cannot exceed the program limits ($3,000-$5,000 depending on income).

What counts as "own funds" for matching?

Own funds are money you have saved and have in your accounts—not gifts, seller assistance, or borrowed money. You must provide bank statements or other documentation proving these are your funds.

Can I use gift money?

Gift money does not count toward your matching contribution. However, after you have met the program's assistance limits through your own matching, additional gift funds may be permitted for additional down payment. Confirm the gift policy with the Redevelopment Authority.

What if I have assets over $30,000?

The $30,000 asset limit applies after settlement. If your assets will exceed this amount after closing, you may not qualify for this program. Contact Sue Dunfee to discuss your specific situation.

What if I need to sell before five years?

If you sell before the five-year forgiveness period ends, you may be required to repay a portion of the assistance based on the program's recapture provisions. Contact the Redevelopment Authority to understand your specific repayment obligations.

What if my income is at the maximum limit?

If your income is at or very close to 100% of county median income, you still qualify but may receive the lower assistance level ($3,000 instead of $5,000). Contact the Redevelopment Authority to confirm your income limit and assistance amount based on your household size.

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.

Getting Started

To apply for the Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program, start by contacting the Redevelopment Authority of Cumberland County:

Sue Dunfee
Phone: 717-249-0789 Ext. 171
Email: sdunfee@cchra.com
Website: cchra.com

Confirm your eligibility, register for the free homebuyer workshop, and request an application. The process typically takes several weeks from workshop completion through approval and closing. Applying early ensures you take advantage of available funding, which is awarded on a first-come, first-served basis.

Conclusion

The Cumberland County Affordable Housing Trust Fund First-Time Homebuyer Program is an innovative assistance program that rewards savers and helps working families achieve homeownership. With its unique 3-to-1 matching formula, five-year loan forgiveness, and substantial assistance up to $5,000, this program removes significant barriers to homeownership for low- and moderate-income buyers in Cumberland County. If you have modest savings, stable income, and are ready to become a homeowner, this program could be the tool that makes your homeownership dream possible.

Credit counseling & First Time Home Buyer Classes in Cumberland County PA