Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program

What is Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program is a forgivable loan for homebuyers in Cumberland County, Pennsylvania, administered by The Redevelopment Authority of Cumberland County (Cumberland County Housing & Redevelopment Authorities).

• A county-funded first-time homebuyer down payment and closing cost assistance program providing up to $5,000 (up to $3,000 for 80-100% AMI; up to $5,000 below 80% AMI) as a five-year, no-interest, forgivable second-mortgage loan, matching the buyer's contribution 3-to-1. Applicants must have lived or worked in Cumberland County for six months, be a first-time homebuyer, have a 620+ credit score, complete homebuyer education, hold no more than $30,000 in assets after settlement, and purchase a single-family home in Cumberland County.
• Up to $5,000 in DP/closing cost assistance.
• No interest, no monthly payments.
• Fully forgiven after 5 years.
• 3-to-1 match on buyer contribution.
• No maximum purchase price.
• Funding comes from County of Cumberland (administered via the Redevelopment Authority of Cumberland County); awards each year depend on the annual allocation.

How much assistance does it provide?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program offers up to $5,000 in assistance.

• Award tiers: 80-100% of County Median Income: up to $3,000. Below 80% of County Median Income: up to $5,000.
• Buyer contribution: Buyer must contribute their own funds matched 3-to-1 (program provides $3 per $1 of buyer funds); match capped at $3,000 (80-100% AMI) or $5,000 (below 80% AMI).
• Amounts are the program's published maximums, not an offer — The Redevelopment Authority of Cumberland County (Cumberland County Housing & Redevelopment Authorities) determines any individual award.

Do you have to pay it back?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program 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 before the 5-year forgiveness term completes; 1/60 forgiven per month.
• 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?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program limits household income to 100% of the area median income, which varies by county and household size.

• 2026 income limits (gross annual household income not to exceed 100% AMI): 1: 80%=$61,250/100%=$76,600; 2: $70,000/$87,500; 3: $78,750/$98,400; 4: $87,450/$109,300; 5: $94,450/$118,100; 6: $101,450/$126,800; 7: $108,450/$135,600; 8: $115,450/$144,300.
• 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?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program caps the purchase price as follows: No maximum purchase price; eligible applicants may purchase single-family homes of any price in Cumberland County.

• Eligible property types include Single-family detached, Manufactured home (HUD code, permanently affixed), and Modular/factory-built housing.
• Manufactured homes are eligible.

Where does it apply?

Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program serves buyers purchasing in Cumberland County, Pennsylvania.

How do you apply?

Applications for Cumberland County First-Time Homebuyer's Down Payment and Closing Cost Assistance Program go through The Redevelopment Authority of Cumberland County (Cumberland County Housing & Redevelopment Authorities), 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 Any HUD-approved Housing Counseling agency; certificate of completion required prior to settlement.

2. 2

   Contact The Redevelopment Authority of Cumberland County (Cumberland County Housing & Redevelopment Authorities) to reserve funds

   Funds are reserved through Applications accepted year-round; funds reserved first-come, first-served subject to availability, 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.