Monroe County First-Time Homebuyer Program

What Is the Program?

The Monroe County First-Time Homebuyer Program is designed to help qualified first-time homebuyers overcome the upfront costs of purchasing a home. Funded through Monroe County's Affordable Housing Trust Fund, the program provides second mortgage loans that can be used for down payment and closing cost assistance. The program is administered by the Redevelopment Authority of the County of Monroe in partnership with local lenders.

Program Benefits and Assistance Amount

The Monroe County First-Time Homebuyer Program offers substantial financial assistance to help you achieve homeownership. Qualified applicants can receive:

• A no-interest second mortgage loan of up to $20,000 or 20% of the purchase price, whichever is less
• An additional $5,000 if you have lived in Monroe County for at least 12 consecutive months before applying

How the Second Mortgage Works

The assistance is structured as a second mortgage loan on your property. The loan is secured by a second lien on your home. The key advantage is that this second mortgage is interest-free, meaning you do not pay any interest on the borrowed amount. The loan is forgiven at 10% per year over the 10-year affordability period, which means your loan balance decreases automatically if you meet the program requirements.

Loan Forgiveness Terms

One of the most attractive features of the program is the loan forgiveness structure. For every year you remain in the home as your primary residence, 10% of the original loan amount is forgiven. This means that if you stay in your home for the full 10-year affordability period, the entire loan is completely forgiven and you owe nothing.

Repayment of the loan, however, becomes due if any of the following occurs:

• You sell or transfer the property
• You cease to occupy the property as your primary residence
• You pay off the first mortgage in full or refinance it for more than the original purchase price
• You default on the second mortgage or first mortgage
• It is discovered that you submitted incomplete, false, or misleading information in your application

Eligibility Requirements

To qualify for the Monroe County First-Time Homebuyer Program, you must meet all of the following requirements:

First-Time Homebuyer Status

You must be a first-time homebuyer as defined by the program. Generally, this means you have not owned a home within the past three years.

Income Limits

Your household income must be at or below 100% of Monroe County's median income. Income limits vary based on family size and are updated annually based on HUD guidelines.

Down Payment Contribution

You must contribute at least 3% of the purchase price from your own funds. This demonstrates your commitment to the purchase and is required by participating lenders.

Property Requirements

The home must be an existing structure. New construction homes are not eligible for this program. The home must be located in Monroe County and will serve as your primary residence, not as a rental or investment property.

Citizenship Status

You must be a U.S. citizen or a permanent resident alien to be eligible for the program.

Pre-Purchase Counseling

You must complete a Pre-Purchase Counseling Workshop that is approved by HUD. This counseling prepares you for homeownership and ensures you understand your financial obligations.

Income Limits for 2026

The following income limits apply to the Monroe County First-Time Homebuyer Program. Remember that these limits are determined annually and subject to change based on HUD median income guidelines for Monroe County.

Household Size	Maximum Annual Income
1 person	$73,063
2 people	$83,500
3 people	$93,938
4 people	$104,400
5 people	$112,750
6 people	$121,125
7 people	$129,438
8 people	$137,813

Monroe County Residency Bonus

The program includes a special bonus for those who have established themselves in Monroe County. If you have lived in Monroe County for at least 12 consecutive months before applying, you are eligible for an additional $5,000 in assistance. This bonus recognizes and supports long-term Monroe County residents and adds meaningful value to the program.

The Application Process

Getting started with the Monroe County First-Time Homebuyer Program involves these steps:

Step 1: Contact the Redevelopment Authority

Reach out to the Redevelopment Authority of the County of Monroe at 570-421-4300 or visit their website to learn about the program and confirm your potential eligibility.

Step 2: Complete Pre-Purchase Counseling

Attend a HUD-approved Pre-Purchase Counseling Workshop. This counseling is required and helps you understand homeownership responsibilities, budgeting, credit, and the home buying process.

Step 3: Submit Your Application

Complete the program application with proof of income, identification, and household information. You can apply online through the portal on the Redevelopment Authority website.

Step 4: Work with a Participating Lender

The Redevelopment Authority will help connect you with a participating mortgage lender. Work with the lender to get pre-qualified for your first mortgage.

Step 5: Find a Home and Make an Offer

Find an existing home in Monroe County and make an offer. The home must meet program requirements and appraise for the purchase price.

Step 6: Underwriting and Approval

Your application and mortgage will go through underwriting. The Redevelopment Authority will review your eligibility for the second mortgage assistance.

Step 7: Closing

Once both mortgages are approved, you will close on your home. The second mortgage funds will be used for your down payment and closing costs.

Frequently Asked Questions

How much can I borrow?

You can borrow up to $20,000 or 20% of the purchase price, whichever is less. If you have lived in Monroe County for at least 12 consecutive months, you can receive an additional $5,000, for a maximum of $25,000.

Do I pay interest on the second mortgage?

No. The second mortgage carries zero interest. You also do not make monthly payments on this loan during the affordability period. The loan is forgiven at 10% per year over 10 years.

What if I want to sell my home before 10 years?

You are free to sell your home before the 10-year affordability period ends. However, if you sell, the remaining balance of the second mortgage becomes due at closing from your sale proceeds.

Can I refinance my first mortgage?

You can refinance your first mortgage if you refinance for less than or equal to the original purchase price. However, if you refinance for more than the original purchase price, you will owe the entire remaining second mortgage balance.

What if my income increases after I buy the home?

Income increases after you purchase the home do not affect your eligibility or your loan forgiveness schedule. As long as you continue to occupy the home as your primary residence, your loan forgiveness continues on schedule.

Can I apply if I have bad credit?

The program itself does not have specific credit score requirements. However, you must be able to qualify for a first mortgage from a participating lender, and most lenders require a credit score of at least 620. Work with the Redevelopment Authority to find a lender willing to work with your credit profile.

Benefits of the Monroe County Program

The Monroe County First-Time Homebuyer Program stands out among Pennsylvania homebuyer assistance programs. The no-interest second mortgage means you save money compared to other programs that charge interest. The 10-year forgiveness schedule rewards long-term homeownership and stability. The additional $5,000 bonus for Monroe County residents shows the county's commitment to keeping families in the community. The program removes a major barrier to homeownership by providing substantial assistance with upfront costs.

Next Steps

If you are a first-time homebuyer in Monroe County with household income at or below the program limits, the Monroe County First-Time Homebuyer Program can help you achieve homeownership. The combination of up to $25,000 in no-interest assistance, zero monthly payments on the second mortgage, and automatic loan forgiveness over 10 years makes this one of Pennsylvania's most generous homebuyer assistance programs. Contact the Redevelopment Authority of the County of Monroe today to learn more and begin your path to homeownership.