Purpose:
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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.
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Eligible
Homebuyers:
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Low and moderate income (see link above Income Limits) first time homebuyers, purchasing a home in Delaware
County Renaissance Program communities (see 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.
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Eligible
Properties:
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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.
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Primary
Lenders:
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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:
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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.
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Homebuyer
Assistance:
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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.
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Additional
Requirements:
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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.
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Maximum
Sale Price:
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$270,750.00
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