Upper Darby Township First Time Home Buyer Program

House with a sold signUpper Darby Township's First Time Home Buyer program provides eligible purchasers with up to $6,000.00 in closing-cost assistance.

The amount of help provided by the township is determined by the difference (gap) between the maximum amount a mortgage lender would grant and the entire purchase price.
The total purchase price comprises the cost of the home, plus closing fees, and is lowered by the buyer's required 3 percent down payment.

The home's overall cost cannot exceed $136,000. An applicant for this program MAY NOT apply for a housing rehabilitation grant via the Township Program until 5 years have elapsed from the date of settlement. Furthermore, the funding DO NOT APPLY TO MULTICAFAMILIES (i.e. duplexes, etc.), only to single-family dwellings (i.e., row home, twin, single). This summary will provide you an overview of the program. Please take your time and carefully read the summary.

ARE YOU ELIGIBLE?

Annual household income - Applicants must have an annual household income that is less than 80% of the Median Family Income for the Pittsburgh Metropolitan Statistical Area (MSA), as calculated by HUD and adjusted for family size.
The number of people who will live in the dwelling unit bought with the help of the Home Buyer Assistance Program is referred to as the household size.

The total of the amounts on the previous year's Federal Tax Return, W-2, and 1099 forms, which you must submit in your application, is used to calculate annual income. Unless they are a full-time student, ALL individuals in the household 18 years of age and older must mention their income.
(If a student is purchasing a house, the student's salary must be mentioned.)
People under the age of 18 do not have their earnings counted.

Homebuyer for the First Time - A “first-time home buyer” is any low-income family that has not purchased a home in the previous three (3) years.
Some families who have owned a house within the last three (3) years may be eligible if they satisfy HUD's criteria of a "displaced homemaker" or "single parent."

Purchaser must be a United States citizen or a permanent resident alien with a minimum of five (5) years of continuous residency and show proof of same.

LENDER - It is the buyer's responsibility to get a mortgage.
Prior to the Township making a commitment, the lender MUST certify to the Township that the proposed mortgage loan amount is the maximum amount that the borrower(s) may carry based on monthly cash availability utilizing the Bank's underwriting. The lender must complete the attached form, which must be submitted together with your application.

PROPERTY REQUIREMENTS - Upper Darby Township single-family, unoccupied, or owner-occupied existing or new construction properties are eligible.
Rental properties are only eligible if they are unoccupied at the time of the selling agreement or if the buyer is the existing renter. Duplexes and other multi-unit homes are not eligible. Please keep in mind that the properties must be within the Township borders and not simply inside the Township school district.

Properties must be in the conformity of the Federal lead-based paint requirements at 24 CFR Part 35 K WHICH STATE THAT THERE CANNOT BE ANY DETERIORATED PAINT SURFACES ANYWHERE INSIDE OR OUTSIDE OF THE PROPERTY.

Principal Residence – The purchaser must use the property as their primary home.
Any breach of the primary residence criterion will result in automatic payback of the Township's subsidy.

BUYER/REALTOR - Before signing a completed purchase contract, the buyer or buyer's Realtor must speak with the Upper Darby Township office of Community Development.

OTHER CONDITIONS - There is no requirement that the home-buyer remain income eligible after purchase.

Affordability Conditions - Buyers are required to use the property as their primary home for the length of the agreement; no leasing or renting is allowed.
Any breaches of the primary residence criterion will result in automatic repayment of the Township's debt.

There is no forgiveness of the township mortgage for the first four (4) years from the date of settlement. The full amount on this loan is due to Upper Darby Township upon sale, transfer of the property, conversion to a non-residential use, conversion to rental property, default on the first mortgage, death(s) of the owner(s), or destruction of the property due to fire or other unforeseen causes. The Buyer must maintain fire insurance on the property for the term of the agreement, which names Upper Darby Township as a lien holder. Prior to or at the time of settlement, a certificate of insurance demonstrating this must be provided.

The Upper Darby Township mortgage will be forgiven at a rate of 16.67 percent per year beginning with the fifth year and ending with the tenth year. The mortgage will be fully dissolved and eliminated at the end of the tenth year (from the settlement date). There is no payment required.