This Program offers a grant assistance for up to $3,000 in the form of a five year forgivable loan to eligible first time homebuyers with an income at or below 100% of the County median income. Through the Affordable Housing Trust Fund, Cumberland County’s Down Payment and Closing Cost Assistance Program will match the participants’ savings 3-to-1. For every $1 of savings, the County will provide $3 in grant assistance up to $3,000. The grant can be used toward the price of the house and/or closing costs. The County will take a subordinated position to the first mortgage and/or to mortgages of other governmental housing programs.

Households with an income at or below 80% of the County median income would only be eligible to participate in this program when the Home Buyer Equity Fund of the Federal Home Loan Bank (available through local banks) is depleted. An exception will be made for those applicants who obtain financing for their home through the USDA Rural Housing Service and also for those applicants who are participants with any Cumberland County Housing and Redevelopment Authority program or related non-profit programs.

A grant agreement will be executed and recorded on behalf of the County of Cumberland in the amount awarded. No monthly payments are required by the borrower.

The Grant Agreement is to be a decreasing lien placed against the property in the amount awarded. The grant shall be refunded if title to the property is sold, transferred, conveyed or equitable interest is extinguished within a period of five (5) years from the date of the grant agreement according to the following lien forgiveness formula. The grant amount shall be forgiven by one-sixtieth (1/60) of the original sum after the first monthly anniversary date of the grant agreement and by one-sixtieth (1/60) on each subsequent monthly anniversary date thereafter if the grantee (s) continues to reside in the property as their principal residence.

In the event the property is conveyed or otherwise disposed of, or the grantee (s) ceases to utilize the property as their principal place of residence, the entire obligation which has not been forgiven as per the above formula shall be due and payable. Should the grantee (s) die before forgiveness of the entire grant amount, such amount as has not been forgiven shall be due and payable upon conveyance of the property.

The County’s interest in the property shall be secured with the filing of appropriate documents in the County Recorder of Deeds and /or Prothonotary’s Office.

1. Applications will be accepted throughout the year.

2. The number of applicants chosen each year will depend upon the annual Affordable Housing Trust Fund allocation to the Down Payment and Closing Cost Assistance Program for that year.

3. Applications will only be considered if they are complete and after the following documentation has been submitted:

    1. Pre-Approval from a lender of their choice

    2. Most recent pay stub, income tax return, and W-2’s

5. Upon being chosen for assistance an applicant will be notified by mail. An acceptance form must be returned within two weeks of notification, verifying the applicant’s acceptance or rejection of the assistance. Upon acceptance, the applicant has six months (180 days) to close on a mortgage loan for the purchase of a single family, owner occupied dwelling in Cumberland County. In the event the settlement can not take place within the required time period due to no fault of the buyer, an additional thirty (30) days may be granted at the discretion of the program administrator.

6. Participants must provide satisfactory evidence that the funds to be matched are the participants’ own funds.

7. The loan documents, and a disbursement check will be sent to the settlement agent on behalf of the participant. The Settlement agent will be instructed to add any recording fees to the settlement sheet to be paid by the buyer. In addition the settlement agent will be requested to send copies of all executed documents to the program administrator.

1. The total household income cannot exceed 100% of county median income by family size based upon the most recent guidelines as published by the U.S. Department of Housing and Urban Development for the Section 8 Rental Assistance Program. These guidelines are issued periodically. Households with incomes at or below 80% will only be eligible when the Home Buyer Equity Fund is depleted. An exception will be made for those applicants who obtain financing for their home through the USDA Rural Housing Service.

2. The applicant must be a first-time homebuyer or cannot have owned a home within the last three years. A first-time homebuyer is defined as someone who has never before owned a home, has owned a mobile home but not the land the mobile home was located on, or someone who has lost their home due to a divorce settlement and has not owned a home since ( displaced homemaker).

3. The applicant must complete a Certified Homebuyer Workshop and provide a certificate of completion to the Program Administrator prior to Settlement.

4. Applicants of any household size are eligible.

5. The house purchased must be located within Cumberland County.

6. At settlement, if the amount of the committed grant assistance is more than is actually allowed per the matching funds guidelines, then the entire excess amount will be paid to the administering agent of the fund (Cumberland County Redevelopment Authority) and returned to the pool.

7. Eligible applicants may be assisted by this Program to purchase homes of any price. The following restrictions apply to all manufactured and factory-built housing:

The Program will consider loans for properties which include a Manufactured or other Factory-Built home providing that, the manufactured home has been built under the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976. For other Factory-Built housing, such as prefabricated, panelized, modular or sectional housing, they must meet local zoning and building codes. In addition, the following criteria apply to both types of housing units:

A. Home must be defined, deeded, and taxed as fee simple real estate

B. Wheels, axles, and trailer hitches must be removed when the unit is placed on its permanent site

C. Home must be permanently affixed to a foundation requirements set forth below:

1. A foundation that has footings located below the frost line. If piers are used, they must be placed where the unit manufacturer recommends. If state law requires anchors, they must be provided. The foundation must meet local codes and have been designed by an engineer to meet soil conditions of the site and assume the characteristics of site-built housing.

2. A "Floating Slab" foundation may be considered.

D. The purchase of the land and the unit must represent a single real estate transaction under applicable state law.

E.  The financing must be evidenced by a mortgage or a deed of trust recorded in the land records.  A combination of chattel and real estate mortgage is not acceptable.

F. An inspection to verify the above criteria will be required, the cost of which will be the buyer’s responsibility.

G. The mortgage amount cannot include the financing of furniture, mortgage life insurance, property damage insurance, or any other form of insurance. However, the financing of kitchen and laundry appliance and carpeting may be included in the mortgage.