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Smithfield Township First Time Home Buyer Program

Nice house with sold signThe goal of this program is to assist low and moderate income homebuyers with down payment and closing cost assistance towards the purchase of a new home. The maximum amount of assistance available per buyer is $5,000 for closing costs and half of their down payment expenses.

The closing cost and down payment assistance is provided in the form of a forgiveness loan that will be recorded as a second mortgage. The assistance loan is not required to be paid back unless the homeowner should sell the property during a five year period after the loan is made. If the property is sold during the five year period, then a portion of the loan is required to be paid. The loan is forgiven at a rate of 20% each year. At the end of the five years, the second mortgage is removed.

Homebuyer Eligibility
1. Must be pre-qualified by a mortgage lender
2. Meet the income guidelines

Annual income - Applicants must have an annual household income that does not exceed 80% of the Median Family Income for Huntingdon County (Smithfield Township) , which is determined by HUD and adjusted for family size. Household size is defined as the number of persons who will occupy the housing unit purchased through the Homebuyer Assistance Program. See income limit chart

If a homebuyer is purchasing an existing home, the income guidelines must be met at the time of purchase. If a homebuyer is purchasing a home to be constructed, the income guidelines must be met at the time the contract between the homebuyer and contractor is signed.

Property Eligibility
1. The home buyer must occupy the home for which they receive assistance to buy as their principal residence.

2. The home is required to be in a safe condition and meet all Smithfield Township property codes.

3. Applicants must be first time hone buyers. Prospective home buyers may not have owned a home during the five year period prior to purchasing a home in Smithfield Township. This does not include:

a) Individuals that own or owned, as a principal residence, a dwelling unit whose structure is not permanently affixed to a foundation; and cannot be brought into compliance with applicable codes for less than the cost of construction.
b) Individuals who are a single parent, that while married owned a home with their spouse or resided in a home owned by their spouse. (To qualify as a single parent, you must be legally separated from your spouse and have custody of one or more children.)

Application Time Period
Homebuyers are encouraged to apply at least 45 days before they are ready to close on a property. The earlier an application is completed, the more time our office will have to conduct income verification and to have the appropriate paperwork ready for when you find the home you want to buy. Due to grant regulations, this funding will not be available to homebuyers that expect to close on a property within one to two weeks.
Applications will be considered on a “first-come – first served” basis.