Homebuyers Assistance Program (HAP)

What is Homebuyers Assistance Program (HAP)?

Homebuyers Assistance Program (HAP) is a forgivable loan for homebuyers in Chester, Pennsylvania.

• City of Chester (Delaware County) HOME/CDBG-funded FTHB DPA. Up to $10,000 down payment + $5,000 closing cost assistance as 0% forgivable soft second forgiven at 5 years. Chester city limits, FTHB, 80% AMI, mandatory counseling.
• Chester Economic Development Authority (CEDA) Homebuyers Assistance Program (HAP) provides HUD HOME and CDBG-funded down payment and closing cost assistance up to $10,000 (down payment) and $5,000 (closing costs) to qualifying first-time homebuyers purchasing in the City of Chester PA (Delaware County). The DPA is a 0% interest deferred forgivable second mortgage forgiven at 5 years per HUD HOME affordability rules. Pairs with FHA, VA, USDA, or Conventional first mortgage. Income range $62,500-$117,850 reflects approximately 80% AMI for Chester city/Delaware County area. NOTE: City of Chester is in DELAWARE COUNTY (not Chester County).
• Funding comes from Federal, HOME, and CDBG.

Do you have to pay it back?

Homebuyers Assistance Program (HAP) 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?

Homebuyers Assistance Program (HAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Homebuyers Assistance Program (HAP) limits household income to 80% of the area median income, which varies by county and household size.

• Income range $62,500-$117,850 reflects approximately 80% AMI for Chester city/Delaware County area 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?

Homebuyers Assistance Program (HAP) caps the purchase price as follows: Per HUD HOME 95% area median sales price for Delaware County and first-mortgage loan limits.

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

Is there eligibility for specific groups?

Homebuyers Assistance Program (HAP) 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?

Homebuyers Assistance Program (HAP) serves buyers purchasing in Chester, Pennsylvania.

• The program targets specific areas: City of Chester is a HUD-designated low-income community with concentrated CDBG/HOME investment. CEDA prioritizes neighborhood revitalization corridors within Chester.

How do you apply?

Applications for Homebuyers Assistance Program (HAP) 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 agencies including Diversified Community Services and other regional HUD-approved providers..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply directly to CEDA. 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.