City of Johnstown First Time Homebuyer Program

What is City of Johnstown First Time Homebuyer Program?

City of Johnstown First Time Homebuyer Program is a forgivable loan for homebuyers in Johnstown, Pennsylvania, administered by City of Johnstown, Department of Community and Economic Development (Office of Residential Development).

• The City of Johnstown First Time Homebuyer Program helps low- and moderate-income first-time buyers purchase and rehabilitate an existing single-family home within Johnstown City limits. It combines a partner-lender first mortgage at one point below prime (capped at 80% of appraised value) with a City deferred 0% second mortgage of up to $22,000 for repairs (10-year forgivable) and up to $3,000 in closing-cost assistance (5-year forgivable), plus a 10% contingency fund for one year after closing. Funded through HUD HOME funds (Consolidated Plan activity HOME-25-12), targeting ~6 households in the current plan year.
• First mortgage at one point below prime.
• up to $22,000 deferred 0% rehab second mortgage, forgivable over 10 years.
• up to $3,000 closing-cost assistance, forgivable over 5 years.
• mandatory radon testing/mitigation paid by program.
• 10% contingency rehab fund.
• Funding comes from HUD HOME Investment Partnerships Program (FY2025-2029 Consolidated Plan activity HOME-25-12).

How much assistance does it provide?

City of Johnstown First Time Homebuyer Program offers up to $25,000 in assistance.

• Award tiers: Two components: (1) City deferred 0% second-mortgage rehab loan up to $22,000, 10-year forgiveness; (2) closing-cost loan up to $3,000, 0%, 5-year forgiveness. Contingency fund of 10% of the original loan available one year after closing.
• Buyer contribution: Minimum 3%-5% down payment depending on lender requirements.
• Amounts are the program's published maximums, not an offer — City of Johnstown, Department of Community and Economic Development (Office of Residential Development) determines any individual award.

Do you have to pay it back?

City of Johnstown First Time Homebuyer Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale/transfer before the lien term, vacating the property, or failure to maintain it. Rehab second mortgage has a 10-year lien term; closing-cost loan has a 5-year lien term; full amount due at closing of sale if sold before term.
• The assistance is recorded in Second 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 Johnstown First Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Johnstown First Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income must not exceed HUD Section 8 income limits for the Johnstown MSA. FY2025 max by size: 1=$47,250; 2=$54,000; 3=$60,750; 4=$67,500; 5=$72,900; 6=$78,300; 7=$83,700; 8=$89,100 (~80% AMI).
• 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?

City of Johnstown First Time Homebuyer Program caps the purchase price as follows: No stated maximum; partner-lender first mortgage limited to 80% of appraised value, City rehab second mortgage capped at $22,000.

• Eligible property types include Single Family.
• New construction is not eligible.

Where does it apply?

City of Johnstown First Time Homebuyer Program serves buyers purchasing in Johnstown, Pennsylvania.

• Targeted neighborhoods: Citywide within Johnstown City limits.

How do you apply?

Applications for City of Johnstown First Time Homebuyer Program go through City of Johnstown, Department of Community and Economic Development (Office of Residential Development), which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Johnstown, Department of Community and Economic Development (Office of Residential Development) to reserve funds

   Funds are reserved through Apply through the City Office of Residential Development; allow 45-60 days for closing., and are subject to availability.

2. 2

   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.