Delaware County Homeownership First Program

The Delaware County Homeownership First Program helps low- and moderate-income first-time homebuyers achieve homeownership by providing up to $10,000 in down payment and closing cost assistance. Administered through multiple partner organizations including the Community Action Agency of Delaware County, Chester Community Improvement Project, and Media Fellowship House, the program combines financial assistance with comprehensive homebuyer counseling and education to ensure successful homeownership.

Program Overview

The Delaware County Homeownership First Program is designed to remove the financial barriers that prevent low- and moderate-income families from becoming homeowners. The program provides substantial financial assistance—up to $10,000—combined with mandatory homebuyer education and counseling. By pairing financial support with education, the program ensures that buyers are both financially supported and fully prepared for the responsibilities of homeownership.

The program is particularly valuable for those with limited savings but stable income and reasonable credit. It also offers a special Revitalization Program track for properties located in designated Revitalization Areas, with the added benefit of loan forgiveness after five years.

Contact Information:
Community Action Agency of Delaware County
Phone: (610) 874-8451
Website: delcopa.gov/hcd/housinginitiatives

Partner Organizations:
Chester Community Improvement Project (CCIP)
Media Fellowship House
Delaware County Office of Housing & Community Development (OHCD)

Available Assistance

Assistance Amounts

The Delaware County Homeownership First Program provides up to $10,000 in down payment and closing cost assistance to eligible homebuyers. The program allocates these funds strategically: the assistance can cover up to 2% of the required down payment, with the remainder allocated toward closing costs. This allocation strategy ensures buyers have help with both the down payment hurdle and the often-surprising closing costs.

For example, on a property with a required 3.5% down payment, the program's assistance might cover 2% of that down payment, leaving the buyer responsible for 1.5%, with the remaining assistance funds applied to closing costs.

Loan Structure and Repayment

The assistance is provided as a 0% interest loan, meaning you will not pay any interest charges on the borrowed amount. The loan is repayable when specific triggering events occur: when you sell or transfer the property, when you refinance your mortgage (unless refinancing is for a lower interest rate), or when your primary mortgage is paid in full.

This deferred repayment structure means you do not make monthly payments on the assistance while you live in the home. You only repay the assistance when you no longer occupy the property as your primary residence or when triggered by the sale, transfer, or certain refinancing scenarios.

Revitalization Program Option

For properties located in designated Revitalization Areas within Delaware County, the program offers an enhanced benefit: the loan is forgiven if you remain in the home as your primary residence for five years. This additional incentive rewards homeowners who stay in revitalization communities and helps stabilize these neighborhoods through sustained homeownership.

Eligibility Requirements

To qualify for the Delaware County Homeownership First 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 as their primary residence during the past three years. Additionally, divorced homemakers who were displaced from their homes may be eligible. This broader definition ensures that those re-entering homeownership after displacement or extended periods of renting can access program assistance.

Income Requirements

Your household income must not exceed 80% of the Median Family Income (MFI) for your household size in Delaware County. Income is calculated as gross annual income from all household members aged 18 and older who will live in the new property. The specific income limits vary by household size and are updated annually by HUD.

Contact the Community Action Agency or your counseling organization to confirm current income limits for your household size. Income limits are typically: - Lower for smaller households (1-2 people) - Higher for larger households (5+ people)

Credit and Financial Readiness

You must demonstrate creditworthiness and financial readiness for homeownership. While specific credit score minimums are not publicly stated, most programs prefer credit scores of 620 or higher. Your credit history, payment record, and ability to manage debt are evaluated during the counseling and application process.

Asset Limitations

Your household's total liquid assets must not exceed $15,000 at the time of application. Additionally, after settlement (closing), your liquid assets must remain below $15,000 (excluding retirement funds and other non-liquid assets). This requirement ensures the program assists those with genuine financial need.

Minimum Contribution Requirement

You must contribute a minimum of $1,000 of your own funds toward the purchase of the home. This demonstrates your personal commitment to the purchase and ensures you have equity at risk in the property. Your down payment contribution comes from your own savings, not from gifts or other assistance programs.

Property Requirements

The property must be a single-family, owner-occupied residential property located in Delaware County. The property must meet county housing quality standards and not exceed the maximum sale price of $266,000 (this limit may be adjusted periodically). The property must be your primary residence, not an investment property or vacation home.

Counseling and Education Requirements

You must complete mandatory homebuyer counseling and education. This typically includes: - At least 5 hours of homebuyer education through group workshops - At least 6 hours of financial counseling through individual sessions - Pre-purchase counseling to assess readiness and create an action plan - Post-purchase counseling to support your success as a new homeowner

All counseling and education services are provided free of charge, pending proof of eligibility.

Homebuyer Counseling and Education

One of the program's greatest strengths is the requirement for comprehensive homebuyer counseling and education. This education ensures you understand the homebuying process, your financial obligations, and your rights and responsibilities as a homeowner.

Pre-Purchase Counseling

Before receiving assistance approval, you must meet with HUD-certified housing counselors who will:

• Assess your readiness to become a homeowner
• Review your credit report and credit score
• Analyze your finances and create a budget
• Develop a personalized action plan for homeownership
• Explain the homebuying process and what to expect
• Discuss available programs and assistance options

Homebuyer Education Workshops

You must attend at least 5 hours of group homebuyer education workshops covering topics such as:

• Understanding credit and credit scores
• Mortgage options and loan products
• Preparing for the homebuying process
• Home inspection and property evaluation
• Closing costs and settlement
• Homeownership responsibilities and home maintenance

Financial Counseling

You must complete at least 6 hours of individual financial counseling sessions to address your specific financial situation, create a household budget, and develop strategies for successful long-term homeownership.

Post-Purchase Support

After closing, continued support is available to help ensure your success as a new homeowner, including guidance on maintenance, budgeting, and accessing resources if you face financial challenges.

Application Process

Step 1: Initial Screening and Pre-Purchase Counseling

Contact one of the program partner organizations (Community Action Agency, CCIP, or Media Fellowship House) to schedule an initial pre-purchase counseling appointment. During this first appointment, the counselor will assess your situation, explain program requirements, discuss eligibility, and help you understand what you need to do next. This appointment is a prerequisite for participation.

Step 2: Complete Homebuyer Education

Enroll in and complete the required homebuyer education workshops (at least 5 hours). These group workshops cover essential topics for first-time homebuyers. Attend all sessions and receive completion documentation.

Step 3: Complete Financial Counseling

Participate in required individual financial counseling sessions (at least 6 hours). Your counselor will help you establish "good" credit, create a realistic household budget, and develop your action plan. Work with your counselor to address any credit issues or financial concerns.

Step 4: Establish Good Credit and Complete Action Plan

After counseling, work on establishing or improving your credit. This may involve paying down debt, disputing credit report errors, or making on-time payments. Complete all items in your personalized action plan developed with your counselor. Being able to demonstrate "good" credit and a completed action plan is necessary before receiving assistance approval.

Step 5: Mortgage Pre-Approval

Work with a lender to obtain pre-approval for a mortgage. Your counselor can help you understand mortgage options and connect with lenders experienced in working with first-time homebuyers. Pre-approval demonstrates your mortgage qualification and readiness to purchase.

Step 6: Program Assistance Application

Once you have completed counseling, established good credit, and obtained mortgage pre-approval, submit your formal application for the down payment and closing cost assistance. Provide all required documentation including proof of income, asset verification, and mortgage pre-approval letter.

Step 7: Find a Property and Make an Offer

Search for single-family homes in Delaware County that meet your budget and program requirements. When you find a property, negotiate with the seller and execute a purchase agreement. Ensure the property is within the $266,000 maximum sale price and meets county housing quality standards.

Step 8: Property Inspection and Appraisal

Obtain a professional home inspection and have the property appraised by the lender. The inspection identifies any issues with the property; the appraisal confirms the property value supports the loan amount.

Step 9: Loan Approval and Closing

Your lender completes mortgage underwriting and issues a commitment letter. The program assistance is finalized. At closing, the down payment and closing cost assistance funds are disbursed to the title company. You sign closing documents, and funds are transferred to the seller. You receive the keys to your new home.

Special Revitalization Program

For homebuyers purchasing in designated Revitalization Areas within Delaware County, the program offers enhanced benefits. In these designated communities, the up to $10,000 assistance loan is forgiven if you remain in the home as your primary residence for five years.

This special track is designed to encourage homeownership and property investment in revitalization communities, helping to stabilize neighborhoods and support community development initiatives.

Contact the program administrators to determine if your target property is located in a designated Revitalization Area and to understand the specific benefits available.

Frequently Asked Questions

How much assistance will I receive?

You can receive up to $10,000, allocated as up to 2% of the down payment requirement plus the remainder toward closing costs. The actual amount depends on the property price, lender requirements, and closing costs for your specific purchase.

What if my income is at the limit?

Income limits are firm eligibility requirements based on 80% of MFI. If your income exceeds the limit for your household size, you do not qualify for this program. Contact the program to confirm your specific income limit before applying.

What if I don't have $1,000 for a down payment?

The $1,000 minimum contribution is a requirement. If you don't have this amount saved, you may need to delay applying until you have accumulated the required funds, or explore other assistance options.

What counts as liquid assets?

Liquid assets include checking accounts, savings accounts, money market accounts, stocks, bonds, and other easily converted investments. Retirement accounts (IRAs, 401(k)s) and non-liquid assets typically do not count toward the $15,000 limit.

When is the loan due?

The loan becomes due when you sell or transfer the property, when you refinance (with certain exceptions), or when your primary mortgage is paid in full. If the property is in a Revitalization Area, the loan is forgiven after 5 years of homeownership.

What if I refinance my mortgage?

If you refinance for a lower interest rate, you typically do not have to repay the assistance loan. However, if you refinance for debt consolidation or other purposes where you are effectively accessing equity, the loan may become due. Clarify the terms before refinancing.

Can I use this program with other assistance programs?

Many buyers combine the Homeownership First Program with other assistance. Discuss your situation with your counselor to understand what combinations are available and compatible.

Important Program Details

Counseling Is Mandatory

The requirement for comprehensive counseling and education is not optional. All participants must complete the required hours of education and counseling. This requirement exists because education and counseling significantly improve homeownership success rates.

Funding Is Limited

While the program is ongoing, funding availability may vary. The program operates on available funding basis, and assistance is not guaranteed even after counseling completion. Apply early in your homebuying process to ensure funds are available.

Property Must Meet Standards

The property must meet Delaware County housing quality standards. The property will be inspected and must not have significant deficiencies. This requirement protects you as a buyer and ensures you are purchasing a sound property.

Maximum Sale Price

The maximum property sale price is currently $266,000 (this limit may be adjusted periodically). You cannot use this program to purchase properties above this threshold.

Getting Started

To apply for the Delaware County Homeownership First Program, contact one of the program partner organizations:

Community Action Agency of Delaware County
Phone: (610) 874-8451

Chester Community Improvement Project (CCIP)
Contact for homebuyer assistance and counseling

Media Fellowship House
First-time homebuyer program assistance

Delaware County Office of Housing & Community Development (OHCD)
Website: delcopa.gov/hcd/housinginitiatives

Schedule an initial pre-purchase counseling appointment to get started. During that first appointment, you'll learn about the program, discuss your eligibility, and understand the next steps. The sooner you begin, the sooner you can work toward homeownership.

Conclusion

The Delaware County Homeownership First Program makes homeownership achievable for low- and moderate-income families by providing up to $10,000 in assistance combined with comprehensive counseling and education. By requiring buyers to complete homebuyer education and financial counseling, the program ensures that assistance goes to those who are both financially supported and fully prepared for successful homeownership. If you are a first-time homebuyer in Delaware County with income below 80% of the area median income and the motivation to become a homeowner, this program can provide the financial and educational support you need to achieve your homeownership goals.

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