First-Time Home Buyers Program

What is First-Time Home Buyers Program?

First-Time Home Buyers Program is a deferred second loan for homebuyers in Monroe County, Pennsylvania.

• The Monroe County Redevelopment Authority First-Time Home Buyers Program provides up to $10,000 in down-payment and closing-cost assistance to income-qualified first-time homebuyers purchasing a primary residence anywhere in Monroe County, PA. The program is funded through HUD HOME pass-through dollars administered by the Monroe County RDA. Assistance is recorded as a 0% interest deferred / forgivable second mortgage with a 5-year affordability period; the lien is forgiven pro-rata as long as the buyer continues to occupy the property as their primary residence. The program is targeted at the Pocono housing market.
• Up to $10,000 in down-payment and closing-cost assistance as a 0% interest deferred / forgivable second mortgage for first-time homebuyers purchasing a primary residence in Monroe County (Pocono area). Funds are HUD HOME pass-through dollars and are forgiven on a pro-rata basis over the 5-year affordability period if the buyer remains in the home as their primary residence.
• Funding comes from HOME, Federal, and Local Government.

Do you have to pay it back?

First-Time Home Buyers Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven pro-rata over a 5-year affordability period and full balance due if the buyer sells, refinances with cash-out, transfers title, or ceases to occupy the home as primary residence within the 5-year period.
• The assistance is recorded in 2 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 Buyers 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 Buyers Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% Monroe County (East Stroudsburg, PA HMFA) AMI: 1-person ~$63,437; 4-person ~$90,650; 8-person ~$119,625. Limits updated annually by HUD.
• 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 Buyers Program caps the purchase price as follows: Maximum purchase price tracks HUD HOME 95% area median purchase price for Monroe County.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First-Time Home Buyers Program serves buyers purchasing in Monroe County, Pennsylvania.

How do you apply?

Applications for First-Time Home Buyers 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 housing counseling agencies serving Monroe County; pre-purchase homebuyer education certificate required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served subject to annual HUD HOME funding allocation; applicants apply directly through Monroe County RDA after lender pre-approval., 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.