Lackawanna County Homebuyer Program

Lackawanna County Homebuyer Program is a deferred second loan for homebuyers in Lackawanna County, Pennsylvania. The Lackawanna County Homebuyer Program is administered by NeighborWorks Northeastern Pennsylvania on behalf of Lackawanna County's HUD HOME and CDBG entitlement allocations. It provides up to $10,000 in down-payment and closing-cost assistance to first-time homebuyers purchasing primary residences in Lackawanna County, PA outside the City of Scranton. Assistance is a 0% interest deferred / forgivable second mortgage with a 5-year affordability period. Up to $10,000 in down-payment and closing-cost assistance for first-time homebuyers purchasing a primary residence in Lackawanna County (excluding the City of Scranton, which has its own program). Provided as a 0% interest deferred / forgivable second mortgage funded through Lackawanna County HUD HOME / CDBG pass-through dollars and administered by Neighborworks Northeastern PA. Forgiven over a 5-year affordability period. Funding comes from HOME, CDBG, Federal, and Local Government.

Lackawanna County Homebuyer Program is forgiven after 5 years, so a homebuyer 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.

Lackawanna County Homebuyer Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer (no ownership of principal residence in prior 3 years). On credit, the program states: Underwriting follows first-mortgage product; Neighborworks NEPA counsels borrowers with credit scores in the 600s. A homebuyer education course is required, through Neighborworks Northeastern PA (HUD-approved housing counseling agency) - pre-purchase 8-hour homebuyer education and one-on-one counseling required. Residency requirement: Property must be located within Lackawanna County, PA (outside Scranton city limits) and occupied as the buyer's primary residence for the 5-year affordability period. Citizenship or immigration status: U.S. citizen or eligible non-citizen permitted by HUD HOME / CDBG rules. Buyer must be a first-time homebuyer (no ownership of principal residence in prior 3 years), purchase a primary residence in Lackawanna County (outside Scranton city limits), and complete Neighborworks NEPA pre-purchase counseling. Household income between approximately $17,600 (very-low / extremely-low set-asides) and $88,400 (8-person at 80% Scranton-Wilkes-Barre MSA AMI). Property must pass HUD HQS / lead-based paint inspection. 5-year affordability period applies; lien forgiven pro-rata.

Lackawanna County Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size. Household income approximately $17,600 (extremely-low / very-low set-asides) up to $88,400 (8-person at 80% 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.

Lackawanna County Homebuyer Program caps the purchase price as follows: Tracks HUD HOME 95% area median purchase price for Lackawanna County. Eligible property types include Single-family detached, Townhouse, Condominium, and 2-4 unit (owner-occupied). New construction is eligible. Manufactured homes are not eligible.

Lackawanna County Homebuyer Program serves homebuyers purchasing in Lackawanna County, Pennsylvania.

Applications for Lackawanna County Homebuyer Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served subject to Lackawanna County annual HUD HOME / CDBG allocation; applications submitted through Neighborworks NEPA. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.