First Time Homebuyer program

What is First Time Homebuyer program?

First Time Homebuyer program is a deferred second loan for homebuyers in Scranton, Pennsylvania.

• The City of Scranton First Time Homebuyer program is administered by the City's Office of Economic and Community Investment (OECI) using HUD HOME / ARPA pass-through funds. The program provides up to $20,000 as a 0% interest deferred / forgivable second mortgage to first-time homebuyers purchasing primary residences within Scranton city limits. Income range covers extremely-low through moderate / 120% AMI tiers depending on funding source within the City's HUD layered-funding model.
• Up to $20,000 in down-payment and closing-cost assistance for first-time homebuyers purchasing a primary residence in the City of Scranton. Provided as a 0% interest deferred / forgivable second mortgage funded through City of Scranton ARPA / HUD HOME funds and administered by the City of Scranton Office of Economic and Community Investment.
• Funding comes from HOME, ARPA, Federal, and Local Government.

Do you have to pay it back?

First Time Homebuyer 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 balance due if buyer sells, refinances with cash-out, transfers title, or ceases primary-residence status during the affordability 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 Homebuyer 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 Homebuyer program limits household income to 120% of the area median income, which varies by county and household size.

• Household income approximately $20,775 (very-low / extremely-low set-asides) up to $139,890 (8-person at 120% Scranton-Wilkes-Barre MSA AMI). 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 Homebuyer program caps the purchase price as follows: Tracks HUD HOME 95% area median purchase price for City of Scranton.

• Eligible property types include Single-family detached, Townhouse, Condominium, and 2-4 unit (owner-occupied).
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First Time Homebuyer program serves buyers purchasing in Scranton, Pennsylvania.

How do you apply?

Applications for First Time Homebuyer 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 (commonly Neighborworks NEPA); pre-purchase 8-hour homebuyer education certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served subject to annual City of Scranton HUD HOME / ARPA allocation; applications submitted through OECI., 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.