First-Time Home Buyer Program

What is First-Time Home Buyer Program?

First-Time Home Buyer Program is a forgivable loan for homebuyers in Centre County, Pennsylvania.

• Centre County (NOT 'Center County') HOME-funded FTHB DPA. Up to $5,000 0% forgivable soft second forgiven at 5 years. Centre County PA (State College area), FTHB, 80% AMI, 660 FICO, mandatory counseling.
• Centre County PA (NOTE: DPA One database lists this as 'Center County' which is a TYPO.
• correct name is 'Centre County') Planning and Community Development First-Time Home Buyer Program provides HUD HOME-funded down payment and closing cost assistance up to $5,000 to qualifying first-time homebuyers purchasing in Centre County PA (State College area, including Bellefonte and Philipsburg). 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. 660 minimum FICO. Income range $75,700-$142,700 reflects Centre County / State College MSA 80% AMI 1p-8p.
• Funding comes from Federal and HOME.

Do you have to pay it back?

First-Time Home Buyer 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?

First-Time Home Buyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First-Time Home Buyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Income range $75,700-$142,700 reflects Centre County / State College MSA 80% AMI for household sizes 1-8 (high relative to other PA counties due to Penn State / State College area).
• 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?

First-Time Home Buyer Program caps the purchase price as follows: Per HUD HOME 95% area median sales price for Centre 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?

First-Time Home Buyer 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?

First-Time Home Buyer Program serves buyers purchasing in Centre County, Pennsylvania.

How do you apply?

Applications for First-Time Home Buyer 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., Centre County Affordable Housing Coalition, NeighborWorks)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply directly to Centre County Planning and Community Development. 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.