Dauphin County First Time Homebuyer Programs and Assistance

Buying your first home in Dauphin County takes planning and money. The good news is that multiple assistance programs exist to help you cover down payment and closing costs. Dauphin County recently doubled its homebuyer assistance, and multiple local, nonprofit, and statewide programs are available to help you achieve homeownership.

Dauphin County offers robust assistance through the county program, the Housing Authority, nonprofit workshops, and statewide options. Each program has different requirements and benefit structures. Some provide direct financial assistance while others combine assistance with education and ongoing support.

Dauphin County First Time Home Buyer Program

The Dauphin County First Time Home Buyer Program recently expanded to help more families achieve homeownership. In April 2024, Dauphin County Commissioners doubled the maximum assistance from $3,000 to $6,000, demonstrating the county's commitment to supporting first-time homebuyers.

The program provides up to $6,000 in loan assistance for first-time homebuyers. You must have a minimum investment of $1,000 of your own personal funds to qualify. The loan can be used toward the purchase price of the house and/or closing costs.

To qualify, your household income cannot exceed 80 percent of the median income for Dauphin County. Income limits vary by household size and are updated annually. The program is administered by the Affordable Housing Trust Fund Advisory Board.

You must complete an approved homebuyer workshop to qualify. Tri County Housing offers comprehensive 8-hour workshops specifically designed for Dauphin County first-time homebuyers. The workshop covers essential homebuying topics and provides certification needed to access assistance.

The maximum liquid assets allowed increased from $5,000 to $20,000 in April 2024. This change recognizes that responsible homeowners may have modest savings while still needing assistance with down payment and closing costs.

Contact the Dauphin County Economic Development Corporation at 717-780-6250 or email Terry Haines at thaines50@gmail.com for more information about the First Time Home Buyer Program.

Housing Choice Voucher Homeownership Program

The Housing Authority of Dauphin County offers a Housing Choice Voucher Homeownership Program for eligible families. This program allows families currently receiving housing assistance to transition from renting to homeownership.

Eligible families may choose a house for purchase anywhere in Dauphin County outside the City of Harrisburg and receive financial assistance for homeownership expenses. Mortgage payments receive assistance for up to 15 years. For elderly or disabled participants, there is no time limit on assistance.

To qualify, you must be a first-time homebuyer or have not owned a home during the last three years. At least one adult family member who will own the home must have been employed for one year prior to receiving homeownership assistance. Elderly and disabled persons do not have to comply with this employment requirement.

Your family must meet Federal minimum income requirements. Total household income cannot exceed the maximum gross income limits prescribed by the program. Enrollment in the Family Self Sufficiency Program is not required, although participation is strongly encouraged.

Tri County Housing Workshops

Tri County Housing provides comprehensive 8-hour workshops for first-time homebuyers from Dauphin, Cumberland, and Perry counties. These workshops are specifically designed to prepare you for homeownership and help you access assistance programs.

A HUD-Certified Housing Counselor guides you through the home-buying process. Workshop topics include understanding homeownership, planning, budgeting, credit scores, Fair Housing and Fair Lending laws, choosing a real estate agent, mortgage pre-approval and mortgage terminology, and avoiding predatory lending.

Upon completion of the workshop, you receive a certificate of completion. This certificate, combined with meeting income requirements, allows you to access assistance for down payments and closing costs on your new home. Workshop completion is required for Dauphin County's First Time Home Buyer Program.

Registration opens periodically for upcoming workshop sessions. Pre-register at Tri County Housing's website to secure your spot. The comprehensive nature of these workshops helps ensure you are prepared for all aspects of the homebuying process.

Pennsylvania Housing Finance Agency Statewide Programs

Dauphin County homebuyers have access to multiple Pennsylvania Housing Finance Agency programs. PHFA offers several mortgage and assistance options designed to help first-time homebuyers achieve homeownership.

The Keystone Forgivable in Ten Years program, known as K-FIT, provides up to 5 percent of the purchase price in down payment and closing cost assistance with no maximum dollar limit. The K-FIT loan is forgiven at 10 percent per year over 10 years, meaning you owe less each year as you build equity.

The Keystone Advantage Assistance Loan provides up to $6,000 in structured assistance toward down payment and closing costs. The Keystone Home Loan program serves first-time homebuyers with income and purchase price limits specific to Dauphin County.

The HOMEstead program provides up to $10,000 in no-interest assistance. The program is available in counties not receiving their own federal allocation. Contact PHFA to confirm Dauphin County's current eligibility.

Federal Mortgage Programs Available

FHA loans allow first-time homebuyers to purchase with as little as 3.5 percent down payment. FHA mortgages have flexible credit requirements and accept borrowers with past credit challenges who demonstrate readiness for homeownership.

VA loans are available to eligible military members, veterans, and surviving spouses. VA loans offer zero down payment options and competitive interest rates as a benefit of military service. The VA guarantees the loan so lenders take less risk and offer better terms.

USDA loans are available in rural areas of Dauphin County for eligible borrowers. USDA loans offer zero down payment and reduced mortgage insurance for rural homebuyers. Income limits apply, but USDA loans serve borrowers in designated rural areas with favorable terms.

Conventional loans are available with 3 to 5 percent down payment for qualified borrowers. Conventional mortgages may offer the best rates and terms for borrowers with good credit and stable income.

How to Get Started with Dauphin County Assistance

The first step is to register for and attend an 8-hour workshop through Tri County Housing. This workshop is required to access the Dauphin County First Time Home Buyer Program and provides essential homebuying education.

Contact Tri County Housing to pre-register for an upcoming workshop session. Sessions fill quickly, so register early. Upon completion, you will receive your certificate of completion.

Contact the Dauphin County Economic Development Corporation at 717-780-6250 to begin the First Time Home Buyer Program application. Ask about current income limits, maximum assistance available, and application requirements.

Contact the Housing Authority of Dauphin County if you are currently receiving Housing Choice Voucher assistance and interested in homeownership. Ask about the Homeownership Program and whether you are eligible.

Contact a PHFA-approved homebuyer counselor to discuss statewide programs. Free counseling helps you understand your options and determine how much home you can afford based on your income and debts.

Income and Credit Requirements

Dauphin County First Time Home Buyer Program requires household income not exceeding 80 percent of the median income for Dauphin County. Income limits vary by household size and are updated annually. Contact Dauphin County to confirm your specific income limit.

PHFA programs have income limits specific to Dauphin County. Income limits are based on area median income set by the U.S. Department of Housing and Urban Development.

FHA loans typically require a minimum credit score of 580 for borrowers putting down 3.5 percent. Conventional loans require a minimum credit score of 620. VA loans have flexible credit requirements for veterans. USDA loans vary by lender but often require a 640 credit score.

Multiple programs work with homebuyers who have past credit challenges if they demonstrate willingness to repay debt and maintain good credit going forward.

Documents You Will Need

Gather your documents early to speed up the application process. You will need recent pay stubs, typically covering the last 30 days. You will need tax returns for the past two years to verify income stability.

Bank statements showing your savings and down payment funds are required. You must also provide identification such as a driver's license or passport. Employment history verification is required.

Authorization to check your credit report is required. This allows lenders and programs to review your credit history and score. The workshop you attend will help you prepare all necessary documents.

Frequently Asked Questions

How much assistance can I receive from Dauphin County program?

As of April 2024, Dauphin County provides up to $6,000 in loan assistance. This increased from the previous $3,000 maximum. The program requires a minimum personal investment of $1,000. The loan can be used toward the purchase price and/or closing costs.

Is the workshop required for the program?

Yes, you must complete an approved homebuyer workshop to qualify for the Dauphin County First Time Home Buyer Program. Tri County Housing offers 8-hour workshops specifically designed for the program. You receive a certificate of completion upon finishing the workshop.

Can I combine Dauphin County assistance with PHFA programs?

You may be able to combine local Dauphin County assistance with PHFA statewide programs to receive additional support. For example, you might receive $6,000 from Dauphin County and then apply for K-FIT from PHFA for down payment assistance. Contact Dauphin County and your lender to confirm which programs can be combined.

What if I receive Housing Choice Vouchers?

If you currently receive Housing Choice Voucher assistance, you may be eligible for the Housing Authority's Homeownership Program. This program allows you to transition from renting to homeownership with continued assistance for up to 15 years. Contact the Housing Authority of Dauphin County to learn about eligibility.

What are the income limits for the program?

The Dauphin County First Time Home Buyer Program requires household income not exceeding 80 percent of the median income for Dauphin County. Income limits vary by household size. Contact the Dauphin County Economic Development Corporation at 717-780-6250 to confirm your specific income limit.

Get Started Today

Dauphin County offers real help for first-time homebuyers who are ready to own. The county's doubling of assistance to $6,000 demonstrates a strong commitment to helping families achieve homeownership. Combined with statewide and federal programs, Dauphin County offers multiple pathways to affordable homeownership.

Contact Tri County Housing to register for an 8-hour homebuyer workshop. Call the Dauphin County Economic Development Corporation at 717-780-6250 for more information about the First Time Home Buyer Program. Contact the Housing Authority if you are interested in the Homeownership Program.

Your path to homeownership in Dauphin County starts today. Take the first step and reach out to the program that best matches your situation.