Down Payment and Closing Cost Assistance Program

What is Down Payment and Closing Cost Assistance Program?

Down Payment and Closing Cost Assistance Program is a forgivable loan for homebuyers in Cumberland County, Pennsylvania.

• Cumberland County HOME/CDBG-funded FTHB DPA. Up to $10,000 0% forgivable soft second forgiven at 5 years. Cumberland County PA (Carlisle, Mechanicsburg, Camp Hill, Shippensburg), FTHB, 80% AMI, 620 FICO, mandatory counseling.
• Cumberland County Housing & Redevelopment Authorities (CCHRA) Down Payment and Closing Cost Assistance Program provides HUD HOME/CDBG-funded down payment and closing cost assistance up to $10,000 to qualifying first-time homebuyers purchasing in Cumberland County PA (Carlisle, Mechanicsburg, Camp Hill, Shippensburg, and surrounding Cumberland County). The DPA is a 0% interest deferred forgivable second mortgage forgiven at 5 years per HUD HOME rules. Pairs with FHA, VA, USDA, or Conventional first mortgage. 620 minimum FICO. Income range $59,050-$139,200 reflects Cumberland County / Harrisburg-Carlisle MSA 80% AMI 1p-8p.
• Funding comes from Federal, HOME, and CDBG.

Do you have to pay it back?

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 5-year HUD HOME affordability period. If property is sold/refi/transferred or borrower vacates within 5 years, unforgiven balance due in full. Forgiven at 5 years of continuous owner-occupancy.
• 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 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 limits household income to 80% of the area median income, which varies by county and household size.

• Income range $59,050-$139,200 reflects Cumberland County / Harrisburg-Carlisle MSA 80% AMI for household sizes 1-8.
• 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?

Down Payment and Closing Cost Assistance Program caps the purchase price as follows: Per HUD HOME 95% area median sales price for Cumberland County and first-mortgage loan limits.

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

Is there eligibility for specific groups?

Down Payment and Closing Cost Assistance Program 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 serves buyers purchasing in Cumberland County, Pennsylvania.

How do you apply?

Applications for Down Payment and Closing Cost Assistance Program 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 HUD-approved homebuyer counseling required (e.g., Tri County Housing Development Corporation, NeighborWorks)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply directly to CCHRA. Funds reserved on first-come, first-served basis subject to allocation., 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.