down payment assistance pa Homeownership just got tougher for some first time home buyers and other low to medium income families who were eligible to use one of the numerous seller funded down payment assistance programs (DPAP’s).
With the elimination of seller funded down payment programs, what options do first time home buyers and other home buyers in PA, WV, and DE (Pennsylvania, West Virginia, and Deleware) have for down payment assistance? One such bank that provides a number of home buyer assistance programs in this region of the U.S. is the Federal Home Loan Bank of Pittsburgh (FHLBank Pittsburgh).
Down Payment Assistance Through Grants, Loans, Matching FundsLike the home buying assistance programs offered FHLBank Pittsburgh, there are many options available in every state, many counties, and many more metropolitan areas that come in the form of low interest loans, grants, forgivable second mortgages, matching grant programs, etc.
Many of these down payment assistant programs are also made available by banks and federally chartered banks as a way for these banks to meet Community Reinvestment Act requirements imposed by the U.S. Federal government.
FHLBank Pittsburgh And First Front Door Homebuyer Grant ProgramFHLBank Pittsburgh serves member banks’ first time home buying customers with the First Front Door Home Buyer Grant Program from Delaware, Pennsylvania and West Virginia.
This program provides a forgivable second mortgage grant of up to $5,000 to be used for down payment and closing costs as necessary to qualified first time home buyers.
To be eligible for this program, homebuyers must be approved for a loan, typically an FHA mortgage, to get the down payment grant. All buyers must contribute some of their own funds to qualify for this program.
down payment assistance pa Review List of Member Banks that participate in the First Front Door Program.Who Is The First Front Door Program Designed For?This down payment assistance program is designed for low to medium income homebuyers who have some but limited resources.
The program is also designed solely for first time home buyers. First time buyers are defined in this program as anyone who has not owned a home within the past three years as a single person or someone who was married and owned a home in the past three years but is no longer married and is qualifying for their first home as a single person.
The program is also designed for someone who is going to live in the home they are purchasing preferably for at least 5 years.
How To Qualify For The First Front Door Homebuyer Program?The first qualification that you must pass that we have already covered is whether you are first time homebuyer.
Second, you may not have more than approximately $30,000 in any type of checking, savings accounts, money market funds, CD’s etc.
You are allowed to have more than $30,000 as long as the funds are in some type of a retirement account like an IRA or a 401k plan.
Of your savings, you must be able to pay some of your own closing costs and down payment.To ensure that you meet the criteria for income you must have a household income of less than 80% of the median income for your county where you are going to be living in.
You will also have to make sure that your monthly housing payment is greater than 15% of your total gross monthly income in order to qualify.
down payment assistance pa To get the funds for this program a home buyer must complete a homeownership counseling session with an approved education and counseling provider.See the FHLBank Pittsburgh Website for more information on the First Front Door down payment assistance program.