Northampton County First Time Home Buyer Program

The Northampton County First-Time Homebuyer Program provides loans to eligible first-time buyers of Northampton County homes. These loans provide up to $5,000 to help with the cost of the house and closing costs. The home must be located in an area of the County where at least 42% of the residents have middle-incomes or less. This includes the cities of Easton and Bethlehem and parts of almost all other municipalities in the County.

There are two equally important goals of this program:

- Provide stable homeownership opportunities to residents with middle and lower-middle incomes.

- Revitalize our older communities by encouraging responsible home ownership in those areas.

We secure the investment in our communities by placing a lien on the property for 5 years or until the property is sold. For each year you stay in your home, 20% of the loan is forgiven. The loan is completely forgiven if the homebuyer stays in the house for at least 5 years.

In addition to our program, there are other programs available through the state and federal government to help homebuyers. Ask one of the participating lenders for information. You can also see what programs are currently offered at:

- You must be a first-time homebuyer or have not owned a home for at least three years.

- The home you are purchasing must be in an area that qualifies based on the incomes of the residents. Qualifying areas are the Cities of Easton and Bethlehem, as well as portions of almost all other Boroughs and Townships. Maps of the qualifying areas in these municipalities are available at the bottom of the following page:

- You do not need not to currently reside within Northampton County.

- The house to be purchased can be either a single unit or range up to four (4) units, but the you must occupy the residence or, in the case of a multi-unit house, you must occupy one of the units.

- There must be an Agreement of Sale to apply.

- You must obtain your primary mortgage from one of the partner financial institutions listed below in order to receive this loan. These institutions are local, have experience with the program, and have a strong record of meeting federal requirements for investment in our communities (CRA). The lender will determine your eligibility and will calculate the amount of the subordinated mortgage required to enable you to purchase the house. The lender will submit a copy of its calculations and your application to us for review.

- You must complete a HUD certified/affiliated Homebuyer Education Counseling Program from an accredited agency before closing. Links to these programs are provided below.

- Your annual household income can not exceed 80% of the median income for the Lehigh Valley as determined by HUD. The limits are as follows:

Qualified first-time homebuyers will be eligible to receive a subordinated mortgage up to a maximum of $5,000 per home. The amount of the subordinated mortgage will be limited to the figure necessary to fill the gap between the primary lender’s commitment and the amount the borrower is able to pay. The Promissory Note, Mortgage and Loan Disclosure Statement documents will be executed by the settlement agent and recorded on behalf of the County of Northampton in the amount awarded. The check provided by the County will be made payable to the settlement company handling your closing. No interest is charged in relation to the mortgage and no payments are required to be made by the borrower.

The applicant must contribute a minimum of 1.5% of the lesser of the purchase price. These funds must come from the applicant’s assets which must be verified in a deposit account by an institution of depository, or constituted by cash on hand, for a minimum of three (3) months prior to the settlement date.

At the time of settlement, the buyer’s liquid assets may not exceed the total of 3% purchase price. Any amount above the 3% must be applied to the purchase of the home, e.g. a person can have a total of 4.5% of the sale price in liquid assets, use 1.5% as a down payment and keep the remaining 3%.

At the settlement completion , if the amount of the committed subordinated mortgage is $100 or more than actually required to achieve the purchase of the home and closing costs, then the entire excess amount will be paid to the Northampton County and returned to the pool.

Applicants must need the subordinated mortgage in order to afford the house.

If the homeowner remains in the home for a period of five (5) years, the subordinated mortgage will be forgiven. However, repayment of the subordinated mortgage is required upon homeowner's resale of the home if it is within those five (5) years. Upon this sale, the original principle amount of the loan is due and payable in full at settlement. If the homeowner refinances the original mortgage, the Northampton County mortgage may be subordinated to the new first mortgage. Subject premises shall be released from the lien and operation of the written mortgage in the event of an arms length sale and in the event the net proceeds from the sale are not sufficient to satisfy the obligation, although the borrower shall continue to be personally obligated to repay the unpaid loan in such event.