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CLOSING COST CALCULATOR

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York County Down Payment & Closing Cost Assistance

Nice house with sold signThe County of York and City of York provide closing cost and down payment assistance to first time homebuyers. 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 household income limit is 80% of the median county income, based on the number of occupants. Eligibility income will generally be determined based on the gross income received by all household members from all income sources for the eight (8) week period immediately preceding the date of the primary loan application, projected forward for the next 12 months. Alternative methods of determining eligibility income will be used if it can be clearly demonstrated that the household member’s income for this period is not representative of their typical earnings history.

Household MembersAnnual 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 homebuyer requirement

Is defined as a person who has not had an ownership interest in real estate within 3 years preceding application for assistance. If a borrower(s) jointly owned a home with a former spouse (and are now divorced), he or she must be removed from the prior deed and released from the note and mortgage. The borrower and co -borrowers may not have an ownership interest in any other real estate or business other than a business that is their primary source of income. Non-occupant co-borrowers are not allowed.

The maximum Homebuyer 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

Borrower and co -borrowers must be U.S. citizens, permanent resident aliens or non-permanent resident aliens with a valid Social Security Number and eligible to work in the US who meeting the standards of a 5 year clearance date from the day 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).

Don't qualify? Take a look at the Pennsylvania Housing Finance Agency's (PHFA) first time and non-first time home buyer programs, including closing cost assistance.

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