EASTON, Pa. – A Northampton County program that provides money for qualifying first-time homebuyers is raising the cap on each forgivable loan from $5,000 to $10,000, officials announced Tuesday.
- A Northampton County program helping first-time homebuyers cover closing costs and down payments will raise the amount of money available to each applicant, from $5,000 to $10,000
- The money is provided as a loan, with 20% of the balance forgiven each year. By year five, the debt is completely forgiven.
- Prospective applicants need to make less than the program's maximum income, which varies with household size, and get a mortgage through an approved lender
The program is designed to make home ownership more accessible to low-income families by helping to cover closing costs and down payment.
Funds are provided as a loan, with 20% of the balance forgiven each year. After five years of owning the home, the county’s loan is forgiven entirely.
This is a significant step in taking our residents from being tenants to assisting them as they become Northampton County homeowners for the first time.Northampton County Executive Lamont McClure
“This is a significant step in taking our residents from being tenants to assisting them as they become Northampton County homeowners for the first time,” County Executive Lamont McClure said in a statement.
“Homeownership remains the surest route into the middle class. I will continue to work and fight to expand the middle class for all of our citizens.”
Money from the program is available to families making less than 80% of the median income in the Lehigh Valley, as calculated by the U.S. Department of Housing and Urban Development. For a family of four, that means bringing in less than $72,500 per year.
To receive funds, applicants need to have an agreement of sale for the house they intend to purchase and must take out a mortgage on the property from a list of approved lenders. Recipients must also complete a homebuyer counseling program approved by HUD.
Would-be homebuyers can apply for the program through their mortgage lender, which decides whether they are eligible and calculates how much county funding they will need, subject to review by the county’s Department of Community and Economic Development.
