The Northampton County First-Time Homebuyer Program provides loans to eligible first-time buyers of Northampton County homes. These loans provide up to $10,000 to help with the cost of the house and closing costs. 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.
Getting Started
- 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 cannot exceed 80% of the median income for the Lehigh Valley as determined by HUD. The limits are as follows:
2022 Family Size Maximum Annual Income Limits (adjusted annually per HUD Income Guidelines)
# IN
HOUSEHOLD
|
MAXIMUM ANNUAL
INCOME
|
1 |
$53,700
|
2 |
$61,400
|
3 |
$69,050
|
4 |
$76,700
|
5 |
$82,850
|
6 |
$89,000
|
7 |
$95,150
|
8 |
$101,250
|
There is no limit on the price of the home you are purchasing, but the lender will determine if the primary mortgage and escrowed costs are within your ability to pay.
Homeowners should understand that they are purchasing a financial product when entering into a mortgage. Before taking this step, you are strongly encouraged to contact one of the Lehigh Valley's homeownership counseling agencies to ensure they understand the process and are purchasing the right product for your household.
Approved List of Homebuyer Education Agencies
Contact for information and upcoming classes:
Community Action Committee of the Lehigh Valley*
1337 East 5th Street
Bethlehem, Pennsylvania 18017
610-691-5620
*
Available in Spanish
Neighborhood Housing Services of the Lehigh Valley
239 North 10th Street
Allentown, Pennsylvania 18102
610-437-4571
An updated listing of approved agencies throughout Pennsylvania is also available at the
Department Of Housing and Urban Development
Approved Lending Partners
American Bank:
610-973-8117
America Financial Network Inc.: 610-442-3331
AnnieMac Home Mortgage: 484-334-2129
Benchmark Mortgage: 484-201-8366
Bright Financial Group: 610-432-2222
Caliber Home Loans: 484-635-2133
CMG Mortgage, Inc.: 610-533-3151
Conquest Mortgage: 610-421-8450
CrossCountry Mortgage - Five Locations:
570-269-3515 (1908 W. Allen Street, Allentown)
610-554-9765 (4620 Hamilton Blvd., Allentown)
484-347-8555 (1146 S. Cedar Crest Blvd., Allentown)
610-462-9118 (1019 W. Broad St., Bethlehem)
484-866-6397 (728 Maple St., Conshohocken)
Embassy Bank: 484-893-8752
ESSA Bank & Trust: 610-849-4029
Fidelity Bank: 610-392-5716
Firstrust Bank: 610-504-4998
Fulton Bank:
610-332-7131
GO Mortgage -
484-484-0343
484-484-0341
Mortgage America: 610-439-8000
NEXA Mortgage: 484-809-3160
Peoples Security Bank & Trust: 570-346-7741 ext. 2287
Planet Home Lending: 610-570-5648 or 484-695-8049
Prosperity Home Mortgage: 484-540-0580
Quaint Oak Mortgage: 610-351-9970'
Salute Home Loans: 610-703-5626
The Mortgage Company (a division of AnnieMac): 610-216-5547
Traditional Mortgage: 610-351-0428
Truist - Two Locations:
610-751-8201 (1345 Airport Rd., Allentown)
484-515-6326 (741 S. 25th St., Easton)
UMortgage: 484-357-9175
What Happens if I Need to Sell or Refinance?
If you live in your home for a period of five (5) years, the subordinated mortgage will be forgiven.
If you need to sell the home within the first five (5) years, the balance of the loan is due and payable in full at settlement (with 20% forgiven for each year of ownership).
If the homeowner refinances the original mortgage, the Northampton County mortgage may be subordinated to the new first mortgage. The Guidelines for this process are below.
Subordination Guidelines
Because this program is meant to help households with limited incomes achieve stable homeownership, the County must ensure that any subordination of its position will have a long-term benefit to the Borrower. Northampton County will subordinate its mortgages to a new primary lender under the following circumstances:
1. The borrower continues to own and occupy the premises as the borrower's primary residence; and
2. The borrower will benefit by securing an interest rate at least 1% less than the existing rate on his or her first mortgage; and
3. The new first mortgage is a fixed rate mortgage with no balloon payments and no pre-payment penalty; and
4. The borrower does not receive any cash out for any purpose, including but not limited to, home improvement loans, bill consolidation loans, lines of credit, future advances, personal loans, medical collections, other mortgages or encumbrances or liens; and
5. Borrower is current with payment of property taxes.
Submission Requirements
The Northampton County DCED must receive the following to consider a request for subordination:
1. Written request from the borrower explaining the purpose for the request. The borrower's name, address and telephone number; lender's name, address, telephone and fax numbers; and the Closing Agent/Title Company contact person, address and telephone number.
2. Copy of Northampton County's existing recorded second mortgage.
3. Details of the loan being requested, including the Truth in Lending statement, first three (3) pages of the appraisal, the proposed mortgage documents and a copy of the Good Faith Estimate or Settlement Statement.
Approval Process
- Within seven (7) business days, lender will receive an approval/denial letter or request for additional information from Northampton County DCED.
- If the request for subordination is approved, Northampton County will complete and execute a Subordination Agreement. The County must review a copy of the HUD-l Closing Statement prior to release of the County's executed Subordination Agreement.
- If a title company supplies the title company's FedEx (or any overnight carrier) account number, the County will overnight the executed Subordination Agreement.
- Please allow up to five (5) business days for preparation of the Subordination Agreement.
- Lender/title company is responsible for recording the original Sub-ordination Agreement and forwarding recorded original to the Northampton County DCED.
Additional Programs
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:
First Front Door Program by Federal Home Loan Bank of Pittsburgh
PA Housing Finance Agency
Additional Questions?
Sarah Ortiz- Northampton County DCED -
610-829-6308 or sortiz@northamptoncounty.org