Down Payment and Closing Cost Assistance Program (< 80% AMI)

What is Down Payment and Closing Cost Assistance Program (< 80% AMI)?

Down Payment and Closing Cost Assistance Program (< 80% AMI) is a forgivable loan for homebuyers in Pittsburgh, Pennsylvania.

• URA Pittsburgh DPA tier for buyers under 80% AMI. Up to $7,500 deferred 0% forgivable second forgiven at 5 years. Pittsburgh city limits, FTHB, 660 FICO, 45% DTI, 1% borrower contribution, mandatory counseling.
• URA Pittsburgh's Down Payment and Closing Cost Assistance Program (DPCCAP) for buyers under 80% Area Median Income (AMI). Provides up to $7,500 in deferred 0% interest forgivable second mortgage assistance for down payment and/or closing costs. The DPA is FORGIVABLE after 5 years of continuous owner-occupancy (per HUD HOME affordability rules). Pairs with FHA, VA, USDA, or Conventional first mortgage. Buyers must purchase a 1-2 unit owner-occupied primary residence in the City of Pittsburgh, complete pre-purchase homebuyer counseling, contribute minimum 1% from own funds, and meet 660 minimum credit score.
• Funding comes from Local, Federal, and HOME.

Do you have to pay it back?

Down Payment and Closing Cost Assistance Program (< 80% AMI) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgivable after 5 years of continuous owner-occupancy. If property is sold, refinanced, transferred, or borrower vacates within 5 years, unforgiven balance due in full.
• 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?

Down Payment and Closing Cost Assistance Program (< 80% AMI) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment and Closing Cost Assistance Program (< 80% AMI) limits household income to 80% of the area median income, which varies by county and household size.

• Income limits at or below 80% AMI for Allegheny County. Full household range $56,250 (1-person 80% AMI) to $93,150 (8-person 80% AMI).
• The limit applies to total household income, not only the borrower&rsquo;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?

Down Payment and Closing Cost Assistance Program (< 80% AMI) caps the purchase price as follows: No URA-set maximum; per first-mortgage product loan limits and Allegheny County FHA loan limits.

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

Is there eligibility for specific groups?

Down Payment and Closing Cost Assistance Program (< 80% AMI) 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?

Down Payment and Closing Cost Assistance Program (< 80% AMI) serves buyers purchasing in Pittsburgh, Pennsylvania.

How do you apply?

Applications for Down Payment and Closing Cost Assistance Program (< 80% AMI) 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 URA-approved homebuyer counseling agencies including NeighborWorks Western Pennsylvania, ACTION-Housing, Catapult Greater Pittsburgh, and Hosanna House..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved by URA-approved participating lender at rate lock through URA's reservation system., 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.