Purpose:
|
To provide homeownership opportunities
to first time homebuyers in Delaware County through pre and post
purchase homeownership counseling, as well as, downpayment and closing
cost assistance. |
Eligible
Homebuyers:
|
Low and
moderate income (see attached Income Limits) first time homebuyers,
purchasing a home in Delaware County (to view list of HOFirst
Communities use the link above). A first time homebuyer is someone who has not owned a
home in the last three (3) years, or is a displaced homemaker. |
Eligible
Properties:
|
Single
family, residential, owner occupied houses (detached, twin, rowhouse,
townhouse or apt. condominium) which are in compliance with County
housing quality standards. Renter occupied properties, duplexes and
properties that are located in and pay property taxes to
Chester
City,
Haverford
Township
or Upper Darby Township
are also not eligible. |
Primary
Lenders:
|
Applicants
are required to secure a first mortgage. Local banks or mortgage
companies will be encouraged to offer discounted interest rates and fees
for first time buyers. First mortgages must be 30 year fixed, at or
below market interest rate, with no more than three points charged, and
have a minimum 95% loan to value ratio.
"The Interest Rate on the
primary loan can not exceed the current rate on a 10-year Treasury Note
+ 200 basis points." |
Minimum
Contribution:
|
A minimum
of $1,000 toward the purchase of the home must come from the borrower.
Typically, lenders will require at least 3% of the sales price from the
borrower's savings. |
Homebuyer
Assistance:
|
Each
borrower will be evaluated based upon income, credit history, and
available assets. Total assistance will not exceed $5,000. Down-
payment assistance will be limited to an amount equal to 2% of the sales
price of the home. The balance of funds will be applied to eligible
closing costs as needed. |
Additional
Requirements:
|
Eight (8)
hours of group homeownership counseling and a minimum of one individual
counseling session are mandatory. A Certificate of Achievement for the
successful completion of the homeownership counseling will be issued
once the client establishes good credit and completes all items
identified in their Action Plan. |
Maximum
Sale Price:
|
$270,750.00 |
|
|
