Pennsylvania’s Lancaster Housing Opportunity Partnership (LHOP) has established a Down Payment Assistance (DPA) Program that helps homebuyers meet the costs of purchasing a home. The program offers down payment and closing cost assistance up to $5,000 through a zero percent interest loan with no monthly payments. The DPA loans are provided in conjunction with mortgage loans offered by partner lenders to purchase properties situated in Lancaster County. The loan approval depends on overall availability of funds.
Eligibility Requirements
- All applicants must be “first time buyers,” who have not owned a home within the last 3 years. Non-occupant co-borrowers are not permitted.
- Borrowers and any co-borrowers must complete LHOP’s Home Buyer Course.
- The borrower and any co-borrowers must occupy the home as their primary residence on a permanent, year-round basis within 60 days of closing.
- The most recent permanent address of borrower and co-borrower must have been within Lancaster County.
- Borrower and any co-borrowers must meet with a qualified Budget Counselor for an individual meeting prior to settlement.
- Properties to be purchased must be located within the County of Lancaster and the most recent occupant must have been the property owner (or the current tenant) to be considered for a Home Buyer Loan. In the case of two-unit properties, this requirement will apply to the unit to be occupied by the borrower.
- Manufactured homes qualify only if the lot is included in the purchase and the unit is attached to a permanent foundation.
Maximum Income Requirements
The projected gross household income, expected to be received over the next 12 months, may not exceed the following limits (Please note that the limits are based on total household members).
1 member household: $49,000
2 member household: $56,000
3 member household: $63,000
4 member household: $70,000
5 member household: $75,600
6 member household: $81,200
7 member household: $86,800
8 member household: $92,400
Note: these figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.
Additional Requirements
- The purchase price cannot exceed $183,000 outside Lancaster City limits.
- Maximum purchase price limits for properties located within Lancaster City limits, are $156,750 for existing homes and $185,250 for new construction properties.
- Sales Agreements must include an executed LHOP Addendum. Funds are subject to availability and will be distributed as stated on a LHOP Commitment Letter.
- A house inspection and wood destroying insect infestation inspection must be completed by a qualified inspector. Properties must also comply with the requirements of 24 C.F.R. Part 35 (Lead-Based Paint Poisoning Prevention in Certain Residential Structures).
- A property appraisal must be completed by a lender-approved, certified appraiser prior to closing.
- Borrower and co-borrowers must be U.S. citizens, permanent resident aliens or non-permanent resident aliens with a valid Social Security Number and eligible to work in the US.
- Program Requirements are subject to change with reasonable notice.
