Upper Darby First-Time Homebuyer Program: A Complete Guide

The Upper Darby First-Time Homebuyer Program is a government-funded initiative that helps qualified homebuyers purchase their first home within Upper Darby Township. Funded by Community Development Block Grant Funds, this program offers assistance to reduce the financial burden of buying a home. The Township recognizes that saving enough money for a down payment and closing costs is one of the biggest obstacles facing first-time homebuyers. This program bridges that gap by providing up to $6,000 in down payment and closing cost assistance.

The program is federally funded, which means the federal government establishes certain eligibility requirements that the Township follows throughout the application and approval process. Understanding these requirements early helps you prepare the necessary documentation and determine your eligibility before you begin your home search.

Maximum Assistance Available

Eligibility Requirements

To qualify for the Upper Darby First-Time Homebuyer Program, you must meet specific requirements set by the federal government and the Township. These include both buyer qualifications and property requirements.

Buyer Eligibility

• You must be a first-time homebuyer. This means you cannot have owned a home within the previous three years.
• You must be able to contribute at least 3.5% of the purchase price as your own down payment.
• You must intend to use the purchased home as your primary residence.
• You must be a U.S. citizen or a permanent resident alien.
• You must have at least five years of continuous residency in the United States.
• You must provide proof of your residency status.
• Your household income must fall within the program limits (see income limits section below).

Income Calculation

The program determines your income based on the prior year's federal tax return, W-2 forms, and 1099 forms. You must provide all of these documents with your application. All household members who are 18 years of age or older must include their income in the calculation, unless they are full-time students. If a student is buying the home, their income must be included. Incomes of household members under 18 years of age are not included in the calculation.

The Township requires income documentation from all household members to ensure you meet the income limits. This prevents problems later in the approval process and helps you understand your eligibility before investing time and money in your home search.

Income Limits by Household Size

Income limits are based on the number of people in your household and are adjusted annually. The following limits apply to Upper Darby Township:

Note: Income limits are adjusted periodically and may be updated. Contact Upper Darby Township's Office of Community Development to verify current income limits for your household size.

Property Requirements

The home you purchase must also meet specific requirements to qualify for assistance under this program.

• The property must be located within Upper Darby Township boundaries, not just the school district.
• The purchase price cannot exceed $200,000.
• The home must be a single-family residence, vacant, or owner-occupied.
• New construction homes are eligible, as are existing homes in move-in condition.
• The property must be your primary residence.
• Rental properties are eligible only if they are vacant at the time of sale or if you are currently renting the property.
• The property must comply with federal lead paint regulations. This means no surface can show any signs of paint deterioration, either inside or outside the home.
• You must have a full home inspection completed by an ASHI or NAHI-certified inspector.
• A copy of the paid inspection receipt must be submitted with your application.

Lead Paint Compliance

Lead paint safety is critical, especially if the home was built before 1978. You are responsible for ensuring that any chipped or deteriorating paint has been remedied before the Township's final inspection. This protects your family and ensures the property meets federal safety standards. Address any paint issues before submitting your application to avoid delays in the approval process.

Lender Requirements

Your lender must confirm certain details about your mortgage application before the Township commits assistance:

• The lender must attest that the requested mortgage loan amount is the highest amount you can afford based on your monthly cash availability and the bank's underwriting standards.
• Your lender must complete a form confirming this and submit it with your application.
• The lender must pre-approve or pre-qualify you for the mortgage before you submit your assistance application.

How the Program Works

Before You Begin Your Home Search

Contact Upper Darby Township's Office of Community Development early in your home search process. Speak with them about your income, down payment savings, and the homes you are considering. This prevents confusion and helps you understand your eligibility before making an offer. The Township staff are available to answer questions and guide you through the program requirements.

Step-by-Step Application Process

Step 1: Get Pre-Approved Arrange pre-approval or pre-qualification from your lender for a mortgage. Your lender will evaluate your credit, income, and debts to determine how much you can borrow.

Step 2: Find a Home and Make an Offer Locate a property that meets the program requirements and falls within the purchase price limits. Before signing a purchase agreement, notify Upper Darby Township's Office of Community Development. They must confirm that the property meets the program standards for paint inspection and other requirements.

Step 3: Complete a Home Inspection Arrange for a full home inspection by an ASHI or NAHI-certified inspection company. You pay for this inspection and will need to submit the paid receipt to the Township. This inspection protects you by identifying any major repairs or issues with the property.

Step 4: Submit Your Application Gather the required documents and submit your application to the Township. Include your prior year's tax return, W-2 forms, 1099 forms, proof of residency, the home inspection receipt, lender pre-approval letter, and the form from your lender attesting to your loan amount.

Step 5: Township Review (3 Weeks) The Township takes approximately three weeks to review your application and determine your eligibility. They will then schedule a visual inspection of the property to verify lead paint compliance and other conditions.

Step 6: Property Inspection A Township inspector will visit the property to ensure it meets the program requirements. This focuses on lead paint safety and overall condition. Address any issues identified during the inspection before closing.

Step 7: Approval and Funding If approved, the Township sends the approved assistance funds directly to the title company. These funds are used at closing to cover down payment or closing cost expenses. Any funds not needed to complete the purchase are returned to the Township.

Making Your Purchase Agreement Contingent on Approval

Your agreement of sale should include a contingency stating that the purchase is contingent on receiving approval for Township assistance. This protects you if your application is denied or if the approval amount is less than expected. Without this contingency, you could be obligated to complete the purchase without the assistance.

Type of Assistance: Forgivable Loan

The Upper Darby First-Time Homebuyer Program assistance is structured as a forgivable loan. This means the Township provides the funds as a second mortgage, but you are not required to make monthly payments. The loan balance is forgiven when you sell the home or refinance the property. If you remain in the home and do not sell or refinance, the loan balance eventually becomes fully forgiven after a set period.

This structure helps you save money by reducing your monthly mortgage payment obligations while still providing the assistance you need to purchase your first home. Always review the specific loan terms and conditions in your closing documents to understand the exact forgiveness schedule.

How Assistance Amount Is Calculated

The assistance amount depends on the gap between what you are contributing and the total purchase price. The calculation works like this:

• Determine the total purchase price (home price plus closing costs).
• Subtract your required 3.5% down payment contribution.
• Subtract the maximum mortgage amount your lender will provide.
• The remaining gap is the assistance amount, up to the program maximum of $6,000.

For example, if you are buying a $150,000 home with $6,000 in closing costs, your total is $156,000. Your 3.5% down payment would be $5,460. If your lender approves you for $144,540 (the remaining amount minus $6,000), then the Township could provide up to $6,000 to cover the remaining gap. This reduces the amount you need to contribute out of pocket at closing.

Frequently Asked Questions

What if I have owned a home before, but it was more than three years ago?

You may be eligible if you have not owned a home for at least three years prior to your application. The program defines first-time homebuyers as people who have not owned a principal residence during the three-year period before applying.

Can I use this assistance with other down payment programs?

No. If you are approved for Upper Darby Township assistance, you cannot use grant funding from any other program to help pay for the home. You may be eligible for other loans or programs, but you must choose one. Discuss all options with your lender before applying.

What happens if the home inspection finds problems?

Any significant issues discovered during the home inspection must be addressed. You can negotiate with the seller for repairs, request a credit at closing, or withdraw your offer if the repairs are too extensive. The Township's lead paint inspection is separate from your full home inspection. Both must pass before closing.

How long does the entire process take?

The application review and Township inspection typically take about three weeks. Add time for your home search, lender pre-approval, home inspection, appraisal, and underwriting. Plan for 45 to 60 days from application to closing, depending on how quickly you complete each step.

What if I earn slightly more than the income limit?

Income limits are firm requirements set by the federal government. If your household income exceeds the limit, you will not qualify for this program. However, you may be eligible for other state or local programs. Contact Upper Darby Township to ask about alternatives.

Can I purchase a home in the Upper Darby school district but outside the township?

No. The program specifically requires that the property be located within Upper Darby Township boundaries. Living in the school district but outside the township does not make you eligible. Verify the township boundaries with your real estate agent or the Township Office before making an offer.

What happens to the assistance if I sell my home soon after purchase?

The assistance is a forgivable loan. When you sell the home, the loan balance is typically paid off from the sale proceeds, or you may owe repayment depending on the loan terms. Review your closing documents carefully to understand the forgiveness schedule and any repayment obligations.

Do I need to attend homebuyer education?

The program guidelines recommend homebuyer education, and some lenders require it, especially if your credit score is below 680. Homebuyer education teaches you about the mortgage process, budgeting, home maintenance, and your responsibilities as a homeowner. Check with the Township and your lender for specific requirements.

Contact Information

Key Takeaways

• Up to $6,000 in assistance is available for first-time homebuyers who have not owned a home in the past three years.
• Your household income must fall within federally established limits that vary by family size.
• You must contribute at least 3.5% of the purchase price as your down payment.
• The home must be located in Upper Darby Township and cannot exceed $200,000 in purchase price.
• The property must meet lead paint compliance standards with no signs of paint deterioration.
• The application process takes approximately three weeks for Township review.
• Assistance is structured as a forgivable loan with no monthly payments required.
• Contact the Township Office of Community Development early to confirm your eligibility and get guidance on the process.

Related Resources

Upper Darby Township is located in Delaware County, Pennsylvania. First-time homebuyers in the County may also explore other assistance programs available through Delaware County's Office of Housing and Community Development. Statewide assistance may be available through the Pennsylvania Housing Finance Agency (PHFA), which administers programs such as Keystone Home Loans and other mortgage products.

Understanding all available options helps you find the program that best fits your financial situation and homeownership goals. Speak with a HUD-approved homebuyer counselor or your lender about all programs for which you may be eligible.

Disclaimer: This article provides educational information about the Upper Darby First-Time Homebuyer Program based on available program guidelines. Program requirements, income limits, and assistance amounts may change. For current program details and eligibility requirements, contact Upper Darby Township's Office of Community Development directly. This content is not intended as legal or financial advice.