Smithfield Township: First Time Home Buyer Program

This program aims to provide low and moderate-income homebuyers with down payment and closing-cost assistance when purchasing a new home.
The maximum help offered to buyers is $5,000 for closing fees and half of their down payment.

Closing-cost and down payment help is offered as a forgiveness loan, which is recorded as a second mortgage. The assistance loan does not have to be repaid unless the homeowner sells the property within five years of receiving it.

If the property is sold within the five-year term, a part of the loan must be paid back. Each year, the debt is forgiven at a rate of 20%, and the second mortgage is paid off after five years.

Home-Buyer 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 Huntingdon County (Smithfield Township) Median Family Income, as calculated by HUD and adjusted for family size.
The household size is the number of people who will live in the dwelling unit bought with the help of the Home Buyer Assistance Program.
See income limit chart

When buying an existing property, the income requirements must be fulfilled at the time of purchase. If a house-buyer is buying a new home, the income requirements must be fulfilled when the contract between the home-buyer and the 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 house must be in good shape and adhere to all Smithfield Township property regulations.

3. Applicants must be first-time home purchasers. Prospective homebuyers may not have owned a house in the previous five years before buying a home in Smithfield Township.
This excludes the following:

a) Individuals who possess or have owned, as a primary home, a housing unit whose structure is not permanently attached to a foundation and cannot be brought into code compliance for less than the cost of construction.
b) Individuals who are single parents and have owned a house with their spouse or lived in a home owned by their spouse while married. (You must be legally separated from your spouse and have custody of one or more children to qualify as a single parent.)

Application Time Period
Homebuyers should apply at least 45 days before they plan to close on a home.
The sooner you submit an application, the more time our office will have to perform income verification and prepare the necessary paperwork for when you locate the house you wish to purchase. This money will not be accessible to homebuyers who plan to close on a property within one to two weeks due to grant restrictions.

First-come, first-served applications will be considered.

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