The Growing Homeowners Initiative

The Growing Homeowners Initiative is a deferred second loan for homebuyers in Luzerne County, Pennsylvania. The Growing Homeowners Initiative is Luzerne County's down-payment and closing-cost assistance program for first-time homebuyers, administered by the Luzerne County Office of Community Development. The program provides up to $7,500 as a 0% interest deferred / forgivable second mortgage and is funded through HUD HOME and CDBG pass-through dollars. Assistance is forgiven pro-rata over a 5-year affordability period as long as the buyer occupies the property as their primary residence. Up to $7,500 in down-payment and closing-cost assistance as a 0% interest deferred / forgivable second mortgage for first-time homebuyers purchasing a primary residence in Luzerne County. Funds are HUD HOME / CDBG pass-through dollars administered through the Luzerne County Office of Community Development. Funding comes from HOME, CDBG, Federal, and Local Government.

The Growing Homeowners Initiative 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.

The Growing Homeowners Initiative 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; no published OCD credit floor. A homebuyer education course is required, through HUD-approved housing counseling agencies (commonly Neighborworks Northeastern PA); pre-purchase 8-hour education certificate required. Residency requirement: Property must be located within Luzerne County, PA and be 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 the prior 3 years). Property must be located in Luzerne County (excluding the City of Wilkes-Barre and Hazleton entitlement areas in some funding cycles). Household income may not exceed 80% HUD AMI for the Scranton-Wilkes-Barre, PA MSA: 1-person ~$46,450 up to 8-person ~$87,550. Buyer must complete a HUD-approved homebuyer education course and contribute funds toward the transaction. Property must pass HQS / lead-based paint inspection. Loan is forgiven over a 5-year affordability period.

The Growing Homeowners Initiative limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% Scranton-Wilkes-Barre MSA AMI: 1-person ~$46,450; 4-person ~$66,300; 8-person ~$87,550. 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.

The Growing Homeowners Initiative caps the purchase price as follows: Tracks HUD HOME 95% area median purchase price for Luzerne County. Eligible property types include Single-family detached, Townhouse, and Condominium. New construction is eligible. Manufactured homes are not eligible.

The Growing Homeowners Initiative serves homebuyers purchasing in Luzerne County, Pennsylvania.

Applications for The Growing Homeowners Initiative 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 annual HUD HOME / CDBG allocation. 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.