Allentown Home Ownership Outreach Program (HOOP)

Allentown Home Ownership Outreach Program (HOOP) is a forgivable loan for homebuyers in Allentown, Pennsylvania, administered by Neighborhood Housing Services of the Lehigh Valley, Inc. The Home Ownership Outreach Program (HOOP) provides down payment and closing-cost assistance to first-time homebuyers purchasing in Lehigh and Northampton Counties (including Allentown, Bethlehem, and Easton). Assistance is a soft second mortgage forgiven 20% per year and fully forgiven after five years of owner-occupancy. Buyers must obtain a first mortgage from a participating lender and complete HUD-approved counseling through CACLV. Administered by Neighborhood Housing Services of the Lehigh Valley. Forgivable soft second (20%/yr, fully forgiven after 5 years). No monthly payments. 0% interest. Covers down payment and closing costs. Layers with PHFA first-mortgage products. Funding comes from City of Allentown HOME/CDBG funds and other federal/local sources via NHS of the Lehigh Valley.

Allentown Home Ownership Outreach Program (HOOP) is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, or loss of owner-occupancy during the 5-year forgiveness period; forgiven 20%/yr, fully forgiven after 5 years. The assistance is recorded in Second mortgage (soft second; may be third lien when layered) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Allentown Home Ownership Outreach Program (HOOP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Not having owned a home in the last 3 years. On credit, the program states: Acceptable credit required (no published numeric minimum). A homebuyer education course is required, through HUD-approved pre-purchase education via Community Action Lehigh Valley (CACLV). First-time buyer = no home ownership in last 3 years. Requires a first mortgage from a bank of choice, acceptable credit, ~2 years verifiable employment, and at least $1,700 held 90+ days. Must attend CACLV counseling.

Allentown Home Ownership Outreach Program (HOOP) limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% AMI (HUD limits for Allentown-Bethlehem-Easton MSA). By-household-size dollar figures not published on the program page. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Allentown Home Ownership Outreach Program (HOOP) can be used for Single Family, Townhouse, and Condo.

Allentown Home Ownership Outreach Program (HOOP) serves homebuyers purchasing in Allentown, Pennsylvania.

Applications for Allentown Home Ownership Outreach Program (HOOP) go through Neighborhood Housing Services of the Lehigh Valley, Inc., which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.