York County Down Payment & Closing-Cost Assistance

Nice houseThe County of York and City of York provide closing-cost and down payment assistance to First Time Home Buyers. There are a few differences between these programs

These programs are designed to provide down payment & closing-cost assistance to low to moderate income households in York County, Pennsylvania. The assistance is in the form of a 5-year forgivable loan to the buyer, secured by a second mortgage against the property.

Income limits (2020)

The maximum family income level is set at 80 percent of the county median income depending on population. The gross income obtained by all family members from all income sources during the eight (8) week period immediately before the date of the main loan application, projected forward for the following 12 months, will be used to calculate eligible income. Other ways of calculating qualifying income will be utilized if it can be shown that the income of the household member during this time is not reflective of their usual earnings history.

Household Members Annual Income
1 member $46,050
2 members $52,600
3 members $59,200
4 members $65,750
5 members $71,050
6 members $76,300
7 members $81,550
8 members $86,800

Maximum purchase price

As of 7/2020, the maximum purchase price cannot exceed $171,00 for existing homes or $238,000 for new construction properties

Credit score

A minimum middle credit score of 620 is required; however, lower credit scores will be considered on a case by case basis. If the applicant(s) do not have a credit score(s), a minimum of three open trade lines (utilities, rent payment history, cell phone, car insurance, etc.) with a satisfactory 12-month payment history is required.

First-time home-buyer requirement

Is defined as a person who has not owned real estate in the three years before the application for help. If a borrower(s) owned a property jointly with a previous spouse (and are now divorced), he or she must be removed from the prior deed and freed from the note and mortgage. The borrower and co-borrowers may not possess any other real estate or company other than the one that is their main source of income. Non-resident co-borrowers are not permitted.

The maximum home-buyer loan amount and related requirements are as follow;

York County:

Maximum Loan Amount:
2% of the sale price toward down payment, and the remainder of the approved loan toward eligible closing-costs (does not include escrows or pre-paids).
 
Loan amount cannot exceed $5,000.00.

Minimum Contribution from Borrower’s own funds:
1% of purchase price or a minimum of $1,000 (whichever is greater)
Minimum Primary Mortgage: 90% LTV Maximum
Combined Loan to Value Ratio: 108% CLTV

City of York:

Maximum Loan Amount:
Sale price less than $40,000: Not to exceed 8% of sales price
Sale price $40,001 to $60,000: Not to exceed 7% of sales price
Sale price $60,001 or more: 6% of sales price, not to exceed $7,000

Minimum Contribution from Borrower’s own funds:
1% of purchase price or a minimum of $1,000 (whichever is greater)
Minimum Primary Mortgage: 90% LTV Maximum Combined Loan to Value Ratio: 108% CLTV

Note: Cap breakdown; 2% of the sale price toward down payment, and the remainder of the approved loan toward eligible closing-costs (does not include escrows or pre-paid(s)).

home-buyers may not retain cash reserves greater than $7,500.00 after closing; and no less than the equivalent of one month’s mortgage payment.

Residency

Borrowers and co-borrowers must be US citizens, permanent resident aliens, or non-permanent resident aliens with a valid Social Security Number who are able to work in the US and have a 5-year clearing date from the date of settlement.

Loan programs

The assistance loan can be used in conjunction with VA, FHA, USDA, and conventional first mortgage financing; or any other mortgage that is acceptable to the county or city providing the assistance loan.

Down Payment

Borrowers must invest at least $1,000.00, whichever is greater, of their own funds towards down payment & eligible closing-cost. (The FHA loan program is ideal for this requirement).

Credit Counseling & First Time Home Buyer Classes in York County PA