NHS Closing Cost Assistance Loan Program (CCAL)

What is NHS Closing Cost Assistance Loan Program (CCAL)?

NHS Closing Cost Assistance Loan Program (CCAL) is a grant for homebuyers in Reading, Pennsylvania.

• The NHS Closing Cost Assistance Loan (CCAL) is NHS Greater Berks's universal closing-cost product. Unlike the FHA Closing Cost Assistance Loan (which is restricted to FHA first mortgages), CCAL can pair with any first-mortgage product including NHS's own HOP loan. CCAL provides up to $10,000 as a small amortizing second-lien loan at a below-market fixed rate, repayable in monthly installments over the loan term. CCAL helps buyers cover closing costs, pre-paid escrows, and settlement fees in a market where seller concessions are constrained.
• Up to $10,000 in closing-cost assistance available with any first-mortgage product (FHA, VA, USDA, Conventional, or NHS HOP). Provided as a small amortizing second-lien loan from NHS Greater Berks at a fixed below-market rate, used exclusively for closing costs / pre-paid escrows / settlement fees that the buyer cannot otherwise cover.
• Funding comes from NHS CDFI capital, PHFA Housing Trust Fund, and FHLB AHP.

Do you have to pay it back?

NHS Closing Cost Assistance Loan Program (CCAL) is structured as a grant, so it is not repaid.

• Repayment is triggered by Standard monthly amortization over the loan term and balance due on sale, refinance with cash-out, or transfer.
• 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?

NHS Closing Cost Assistance Loan Program (CCAL) is open to buyers who will live in the home as their primary residence.

What are the income limits?

NHS Closing Cost Assistance Loan Program (CCAL) limits household income to 140% of the area median income, which varies by county and household size.

• Household income approximately $52,500 (1-person) up to $129,872 (8-person, ~140% Reading MSA AMI). Limits updated annually.
• 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?

NHS Closing Cost Assistance Loan Program (CCAL) caps the purchase price as follows: Tracks NHS Greater Berks underwriting guidelines and the first-mortgage product.

• 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?

NHS Closing Cost Assistance Loan Program (CCAL) serves buyers purchasing in Reading, Pennsylvania.

• The program targets specific areas: Berks County, PA and the City of Reading.

How do you apply?

Applications for NHS Closing Cost Assistance Loan Program (CCAL) 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 NHS Greater Berks HUD-approved housing counseling program; 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; applicants apply through NHS Greater Berks lending team after first-mortgage 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.