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).

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

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.

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Displaced homemaker or single parent qualifies even if they previously owned; otherwise no home owned in the last 3 years. On credit, the program states: 620 and above (580 with exceptions). A homebuyer education course is required, 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.

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.

City of Erie HOME Investment Partnerships Program - Homebuyer Down Payment & Closing Cost Assistance can be used for Single Family. Manufactured homes are not eligible.

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

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. 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.