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City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance

City of Erie Department of Economic & Community Development (DECD) · Erie, Pennsylvania

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See what you qualify forOfficial program site →
Assistance

$24,999

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven once the program's conditions are met

What is City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance is a forgivable loan for homebuyers in Erie, Pennsylvania, administered by City of Erie Department of Economic & Community Development (DECD).

  • The City of Erie's HOME Investment Partnerships Program (DECD) provides first-time homebuyers with down payment and/or closing cost assistance (and optional rehab to code) as a HUD-funded forgivable loan of up to $24,999, secured by a recorded second mortgage. The loan is forgiven pro-rata over a 5- or 10-year affordability period (based on amount) so long as the buyer occupies the home and keeps it free of code violations.
  • Up to $24,999 in DPA and/or closing cost assistance.
  • 0% interest, no monthly payment.
  • Forgiven over a 5- or 10-year affordability period.
  • Optional rehab to code and lead-hazard control.
  • Funding comes from Federal HUD HOME Investment Partnerships Program funds (City of Erie DECD).

How much assistance does it provide?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance offers up to $24,999 in assistance.

  • The program asks buyers to contribute $1,000 or $1,500 of buyer's own money required (depending on household income); must appear on the Closing Disclosure.
  • Amounts are the program's published maximums, not an offer — City of Erie Department of Economic & Community Development (DECD) determines any individual award.

Do you have to pay it back?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance is a forgivable loan, so the balance is forgiven once the program's conditions are met.

  • Repayment is triggered by Sale, transfer, refinance without DECD approval, ceasing owner-occupancy, default on the first mortgage, or failure to follow HOME rules during the affordability period. Pro-rata forgiveness (1/5 per year for 5-year; 1/10 per year for 10-year term).
  • The assistance is recorded in Second (HOME Program Mortgage recorded behind the primary lender). position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance 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: Displaced homemaker or single parent qualifies even if they previously owned; otherwise no home owned in the last 3 years.
  • The home is occupied as a primary residence
  • On credit: 620 and above (580 with exceptions).
  • A completed homebuyer education course, through HUD-approved housing counseling agency; minimum 8 hours pre-purchase counseling. St. Martin Center (814-452-6113), Advantage Counseling Services (1-866-699-2227), GECAC (814-459-4581).
  • Citizenship or immigration status: Must be a U.S. citizen or permanent resident alien.
  • First-time buyer (no ownership in last 3 years; displaced homemaker/single parent exception). Buyer contributes $1,000-$1,500. Minimum 8-hour HUD-approved counseling and an independent inspection required before closing. Fixed-rate fully amortized first mortgage only. Funding first-come, first-served. Unconfirmed: max purchase price, max DTI, new-construction eligibility (not stated in official source).

The program excludes

  • Manufactured homes
  • 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?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance limits household income to 80% of the area median income, which varies by county and household size.

  • Must not exceed 80% AMI (HUD). Limits eff. June 1, 2025: 1 $47,250; 2 $54,000; 3 $60,750; 4 $67,500; 5 $72,900; 6 $78,300; 7 $83,700; 8 $89,100.
  • 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?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance can be used for Single Family.

  • Manufactured homes are not eligible.

Where does it apply?

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance serves buyers purchasing in Erie, Pennsylvania.

How do you apply?

Applications for City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance go through City of Erie Department of Economic & Community Development (DECD), 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 housing counseling agency; minimum 8 hours pre-purchase counseling. St. Martin Center (814-452-6113), Advantage Counseling Services (1-866-699-2227), GECAC (814-459-4581)..

  2. Contact City of Erie Department of Economic & Community Development (DECD) 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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