Lackawanna County Homebuyer Program

What is 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.

Do you have to pay it back?

Lackawanna County 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?

Lackawanna County 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?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

Applications for Lackawanna County 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 Neighborworks Northeastern PA (HUD-approved housing counseling agency) - pre-purchase 8-hour homebuyer education and one-on-one counseling required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served subject to Lackawanna County annual HUD HOME / CDBG allocation; applications submitted through Neighborworks NEPA., 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.