Northampton County First Time Homebuyer Programs and Assistance

Buying your first home in Northampton County takes planning and money. The good news is that multiple assistance programs exist to help you cover down payment and closing costs. Northampton County offers strong local programs plus access to statewide and federal options to make homeownership achievable.

Northampton County is a growing region in the Lehigh Valley with diverse housing opportunities. The county First-Time Homebuyer Program recently increased maximum assistance to $10,000. The City of Bethlehem offers additional assistance through its Homebuyer Assistance Program. Combined with state and federal programs, Northampton County buyers have multiple pathways to homeownership.

Northampton County First-Time Homebuyer Program

The Northampton County First-Time Homebuyer Program provides substantial financial assistance to eligible homebuyers. The program is administered by the Northampton County Department of Community and Economic Development.

The program recently expanded assistance to $10,000, increased from the previous $5,000 maximum. This demonstrates the county's strong commitment to helping first-time homebuyers achieve homeownership. The increased amount provides meaningful assistance for most home purchases in Northampton County.

The assistance is structured as a subordinated mortgage, also called a second mortgage lien. This means the assistance is secured against the property and recorded as a second mortgage. You receive a Mortgage, Promissory Note, and Loan Disclosure Statement documents after closing.

The loan charges no interest and requires no monthly payments. You do not have to make regular mortgage payments on this assistance loan. Instead, the loan is forgiven based on how long you occupy the property as your primary residence.

The loan is forgiven at 20 percent per year for each year you stay in the home. This means 20 percent of the loan is forgiven in year one, another 20 percent in year two, and so on. After five years, the entire loan is completely forgiven and you owe nothing.

The amount of closing assistance is based on your cash assets and total cash requirement at settlement. The program evaluates your specific financial situation to determine the exact amount you receive.

To qualify, you must be a first-time homebuyer. Northampton County defines this as someone who has not owned a home in the past three years. The property must be your primary residence, not an investment or vacation property.

The property can be a single-family home, duplex, triplex, or four-unit building. You must occupy one of the units as your primary residence.

Your household income cannot exceed 80 percent of the median income for the Lehigh Valley. The Lehigh Valley median income is determined annually by Housing and Urban Development. Contact the Northampton County Department of Community and Economic Development to confirm your specific income limit based on your household size.

You must complete a HUD-certified or HUD-affiliated homebuyer education counseling program from a recognized organization before closing. This requirement ensures you understand your responsibilities and the homebuying process.

You must obtain your primary mortgage from one of the financial institutions that Northampton County partners with. These partner institutions are regional organizations with knowledge of the program and a solid track record of meeting federal community investment standards.

Applications are reviewed continuously throughout the year. The Northampton County Department of Community and Economic Development receives and processes applications on a first-come, first-served basis. When funds are depleted, approved but non-funded applications are held to await additional funding in future years.

City of Bethlehem Homebuyer Assistance Program

The City of Bethlehem offers additional homebuyer assistance to first-time buyers purchasing homes within the city limits. The program is coordinated by the Bethlehem Redevelopment Authority in partnership with Community Action Lehigh Valley.

The Bethlehem Homebuyer Assistance Program provides up to 10 percent of the home's purchase price in down payment and closing cost assistance. For example, on a $200,000 home purchase, you could receive up to $20,000 in assistance.

The assistance is structured as a deferred payment loan with no monthly payments required. Like the county program, you do not make regular mortgage payments. The loan is forgiven over a 10-year affordability period.

To qualify, you must be a first-time homebuyer, which means you have not owned a home in the past three years. You must have a permanent address in the City of Bethlehem.

You must provide a $1,000 personal contribution toward the home purchase. This demonstrates your personal investment in homeownership. You must also pay a $275 non-refundable fee for one-on-one pre-purchase counseling services with a HUD-certified Housing Counselor. This counseling ensures you are prepared for homeownership.

Contact the Bethlehem Redevelopment Authority to apply and learn about current program details and any property or income limits.

Community Action Lehigh Valley Homebuyer Education

Community Action Lehigh Valley coordinates the Home Ownership Counseling Program in partnership with the City of Bethlehem. The program sponsors 8-hour first-time homebuyer seminars designed to prepare you for homeownership.

Seminars are held seven times annually. Three of the seven seminars are conducted in Spanish, making the program accessible to Spanish-speaking residents.

The seminars cover essential homebuying topics including understanding homeownership, budgeting, credit management, mortgage pre-approval, mortgage terminology, and avoiding predatory lending. Completing the seminar satisfies homebuyer education requirements for both county and city programs.

Contact Community Action Lehigh Valley through the Bethlehem RDA for information about upcoming seminar dates and registration.

Pennsylvania Housing Finance Agency Statewide Programs

Northampton 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 with affordable payments and flexible terms.

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. This program offers a reliable amount of assistance with clear terms that are easy to understand.

The Keystone Home Loan program serves first-time homebuyers with income and purchase price limits specific to Northampton County. This program offers competitive interest rates and low fees with 30-year fixed-rate mortgages available through conventional, FHA, VA, or USDA loans.

The HFA Preferred loan has income limits but does not have first time homebuyer requirements, nor does it have purchase price limits. This program offers flexibility for different buyer situations.

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 Northampton 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 Northampton County Assistance

Contact the Northampton County Department of Community and Economic Development to begin the county First-Time Homebuyer Program application. Ask about current income limits for your household size and maximum assistance available.

Complete a HUD-certified or HUD-affiliated homebuyer education program. Community Action Lehigh Valley offers 8-hour seminars through its Home Ownership Counseling Program. You can also complete homebuyer education through other approved agencies in the area.

If you are purchasing in the City of Bethlehem, contact the Bethlehem Redevelopment Authority about the city's Homebuyer Assistance Program. Learn about the $1,000 contribution requirement and $275 counseling fee.

Work with one of Northampton County's partner financial institutions for your primary mortgage. Ask your lender about their experience with the county program and how they can help coordinate your assistance.

Contact a PHFA-approved mortgage lender to explore statewide programs and federal loan options. Some lenders specialize in certain programs, so shopping around helps you find the best rates and terms.

Get prequalified for a mortgage before house hunting. Prequalification shows you how much you can borrow and helps you search in the right price range.

Income and Credit Requirements

Northampton County First-Time Homebuyer Program income limit is 80 percent of the Lehigh Valley median income as determined by HUD. Income limits vary by household size and are updated annually. Contact the Northampton County Department of Community and Economic Development at to confirm your specific income limit.

PHFA programs have income limits specific to Northampton County. Income limits are updated annually 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.

The good news is that you do not need perfect credit to qualify for homeownership assistance in Northampton County. 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. Your homebuyer education course will help prepare you and explain what documents you need.

Frequently Asked Questions

How much assistance can I receive from Northampton County program?

You can receive up to $10,000 in down payment and closing cost assistance through the Northampton County First-Time Homebuyer Program. The assistance is a no-interest second mortgage that is forgiven at 20 percent per year. After five years of living in the home as your primary residence, the entire loan is completely forgiven.

Is homebuyer education required?

Yes, you must complete a HUD-certified or HUD-affiliated homebuyer education program before closing on your home. Community Action Lehigh Valley offers 8-hour seminars, including sessions conducted in Spanish. Other approved agencies in the area also offer homebuyer education courses.

Can I combine Northampton County assistance with PHFA programs?

You may be able to combine local Northampton County assistance with PHFA statewide programs to receive additional support. For example, you might receive $10,000 from Northampton County and then apply for K-FIT from PHFA for additional down payment assistance. Contact the Northampton County Department of Community and Economic Development and your lender to confirm which programs can be combined.

What is the City of Bethlehem program?

The City of Bethlehem Homebuyer Assistance Program provides up to 10 percent of the purchase price in down payment and closing cost assistance for first-time homebuyers purchasing in the city. The assistance is a deferred payment loan with no monthly payments, forgiven over 10 years. You must provide a $1,000 personal contribution and pay a $275 non-refundable counseling fee.

What if I am a veteran?

If you served honorably in the U.S. military, you may qualify for VA loan benefits including zero down payment and competitive interest rates. VA loans are available through PHFA participating lenders. Contact a PHFA-approved lender to ask about VA loan eligibility and benefits available to you.

Get Started Today

Northampton County offers real help for first-time homebuyers who are ready to own. The county program doubled to $10,000 to help more families achieve homeownership. The City of Bethlehem and Community Action Lehigh Valley provide additional support through education and targeted assistance. Combined with state and federal programs, Northampton County offers multiple pathways to homeownership.

Contact the Northampton County Department of Community and Economic Development to begin the county program application. If purchasing in Bethlehem, contact the Bethlehem Redevelopment Authority. Register for a homebuyer education seminar through Community Action Lehigh Valley. Talk to mortgage lenders about FHA, VA, USDA, and conventional loan options available to you.

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