Northampton County First-Time Homebuyer Program

What is Northampton County First-Time Homebuyer Program?

Northampton County First-Time Homebuyer Program is a forgivable loan for homebuyers in Northampton County, Pennsylvania, administered by Northampton County Department of Community & Economic Development.

• Provides income-eligible first-time buyers up to $10,000 toward purchase and closing costs as a zero-interest subordinated mortgage, forgiven 20%/year and fully forgiven after five years of owner-occupancy. Buyers use a partner lender, complete HUD counseling, and earn no more than 80% of Lehigh Valley AMI.
• Up to $10,000 forgivable subordinate loan.
• Zero interest, no monthly payments.
• 20% forgiven per year, fully forgiven after 5 years.
• Pairs with HOOP and First Front Door.
• Up to 4 units eligible.
• Funding comes from Northampton County Affordable Housing Program.

How much assistance does it provide?

Northampton County First-Time Homebuyer Program offers up to $10,000 in assistance.

• Buyer contribution: Minimum 1.5% of purchase price from own assets (in deposit account 3+ months or cash on hand); at settlement liquid assets may not exceed 3% of purchase price.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Northampton County Department of Community & Economic Development determines any individual award.

Do you have to pay it back?

Northampton County First-Time Homebuyer Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 20% forgiven per year; fully forgiven after 5 years. Unforgiven balance repaid if sold or transferred within 5 years.
• The assistance is recorded in Second (subordinate to fixed-rate first mortgages only) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Northampton County 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?

Northampton County First-Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• FY2024 HUD limits (all household members): 1 $55,100; 2 $62,950; 3 $70,800; 4 $78,650; 5 $84,950; 6 $91,250; 7 $97,550; 8 $103,850.
• The limit applies to total household income, not only the borrower’s.
• 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?

Northampton County First-Time Homebuyer Program caps the purchase price as follows: No fixed cap; assistance limited to gap between lender commitment and borrower ability, up to $10,000.

• Eligible property types include Single Family and 2-4 Unit.

Where does it apply?

Northampton County First-Time Homebuyer Program serves buyers purchasing in Northampton County, Pennsylvania.

How do you apply?

Applications for Northampton County First-Time Homebuyer Program go through Northampton County Department of Community & Economic Development, 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 Half-day HUD homebuyer education. Approved: Community Action Lehigh Valley (610-691-5620), Neighborhood Housing Services (610-372-8433)..

2. 2

   Contact Northampton County Department of Community & Economic Development to reserve funds

   Funds are reserved through Accepted year-round through partner lender; lender submits to NCDCED at least 14 days before closing., 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.