Bethlehem Homebuyer Assistance Program (BHAP)

What is Bethlehem Homebuyer Assistance Program (BHAP)?

Bethlehem Homebuyer Assistance Program (BHAP) is a forgivable loan for homebuyers in Bethlehem, Pennsylvania.

• City of Bethlehem CDBG/HOME-funded FTHB DPA. Up to $10,000 0% forgivable soft second forgiven at 5 years. City of Bethlehem (Lehigh and Northampton Counties), FTHB, 80% AMI, mandatory counseling.
• City of Bethlehem - Department of Community and Economic Development - Bethlehem Homebuyer Assistance Program (BHAP) provides HUD CDBG/HOME-funded down payment and closing cost assistance up to $10,000 to qualifying first-time homebuyers purchasing in the City of Bethlehem PA (located in Lehigh and Northampton Counties, Allentown-Bethlehem-Easton MSA). The DPA is a 0% interest deferred forgivable second mortgage forgiven at 5 years per HUD HOME rules. Pairs with FHA, VA, USDA, or Conventional first mortgage. Income range $55,100-$103,850 reflects Allentown-Bethlehem-Easton MSA 80% AMI 1p-8p.
• Funding comes from Federal, HOME, and CDBG.

Do you have to pay it back?

Bethlehem Homebuyer Assistance Program (BHAP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 5-year HUD HOME affordability period. If property is sold/refi/transferred or borrower vacates within 5 years, unforgiven balance due in full. Forgiven at 5 years of continuous owner-occupancy.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Bethlehem Homebuyer Assistance Program (BHAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Bethlehem Homebuyer Assistance Program (BHAP) limits household income to 80% of the area median income, which varies by county and household size.

• Income range $55,100-$103,850 reflects Allentown-Bethlehem-Easton MSA 80% AMI for household sizes 1-8.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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?

Bethlehem Homebuyer Assistance Program (BHAP) caps the purchase price as follows: Per HUD HOME 95% area median sales price for Bethlehem MSA and first-mortgage loan limits.

• Eligible property types include 1- to 2-unit owner-occupied primary residence (single-family detached, duplex, townhouse).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Bethlehem Homebuyer Assistance Program (BHAP) names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Bethlehem Homebuyer Assistance Program (BHAP) serves buyers purchasing in Bethlehem, Pennsylvania.

• The program targets specific areas: City of Bethlehem CDBG-eligible target neighborhoods, including South Side and Northeast Bethlehem.

How do you apply?

Applications for Bethlehem Homebuyer Assistance Program (BHAP) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer counseling required (e.g., Community Action Committee of the Lehigh Valley, NeighborWorks)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply directly to City of Bethlehem CED. Funds reserved on first-come, first-served basis subject to allocation., and are subject to availability.

3. 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.