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Allentown Home Ownership Outreach Program (HOOP)

Neighborhood Housing Services of the Lehigh Valley, Inc. · Allentown, Pennsylvania

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Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is 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.

Do you have to pay it back?

Allentown Home Ownership Outreach Program (HOOP) is forgiven after 5 years, so a buyer 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.

Who qualifies?

Allentown Home Ownership Outreach Program (HOOP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Not having owned a home in the last 3 years
  • The home is occupied as a primary residence
  • On credit: Acceptable credit required (no published numeric minimum)
  • A completed homebuyer education course, through HUD-approved pre-purchase education via Community Action Lehigh Valley (CACLV)
  • DRAFT (dpa-gap-finder 2026-06-14): pending review. 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. Unconfirmed: maximum assistance dollar amount (City of Allentown HOME 'Community Partnership' caps direct assistance at up to $4,000 in its Action Plan, but not confirmed as the HOOP per-buyer max), minimum credit score, max DTI, max purchase price, by-household-size income limits, annual funding cap, new-construction/manufactured-home eligibility.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

What kind of home can it be used for?

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

Where does it apply?

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

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved pre-purchase education via Community Action Lehigh Valley (CACLV).

  2. Contact Neighborhood Housing Services of the Lehigh Valley, Inc. to reserve funds

    Funds are reserved with the provider and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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Allentown Home Ownership Outreach Program (HOOP), explained

A short, free course on Allentown Home Ownership Outreach Program (HOOP): what it is, who it is for, how it is forgiven, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

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