This program is available to first time home buyers purchasing a home in the city of Connellsville, Pennsylvania. There are eligibility requirements that must be met, including income limits (see below).
Two (2) $ 10,000 zero percent (0%) deferred payment loans will be made available to each applicant. Funds can be used for: home improvements, downpayment assistance and closing costs. The first $ 10,000 loan will be forgiven at a rate of 10% per year. If the applicant lives in the home for ten years, the entire first $ 10,000 loan will be completely forgiven and become a grant. The second $ 10,000 is not forgiven and when the new homeowner ceases to live in the property or the property is sold, the entire loan must be repaid (0% interest).
The Redevelopment Authority will pay $ 500 for mandatory home ownership counseling.
Homeowner
The applicant must pay $ 500 up front to the Redevelopment Authority for the initial property inspection. PNC Bank requires the potential homeowner to pay a application/appraisal fee (approximately $ 395.00) at the time they make application for the actual mortgage.
PNC Bank/Mortgage Company
PNC Bank is the only local lending institution participating in the Connellsville Redevelopment Authority's First Time Homebuyer Program. To access this program, the applicant must secure a mortgage from PNC Bank. PNC Bank has pledged to offer the most competitive mortage products they have available to our applicants.
Applicants may use any realtor of their choice.
Program Information and Procedures:
1. Potential applicants must secure a spot on the "waiting list"
2. Applicants are interviewed and must provide income verification (W-2, 2 years of their most recent tax returns, most recent paystubs with year to date information and current bank statements) and other neessary documentation. Once screened for income eligibility, applicants must sign a release of information sheet that will be forwarded to Fayette County Community Action Agency to conduct a credit report.
3. Credit-worthy (having a credit score of 640 and above) applicants will then be referred to the lending institution to become "Pre-Approved" for a maximum mortgage amount.
4. Once "Pre-Approval certificate" is received from the lending institution, applicant must attend the mandatory "Homeownership Counseling" Course to be conducted by Fayette County Community Action Agency.
5. Once all of the above items are met, the Connellsville Redevelopment Authority will issue the applicant an official approval certificate to participate in the First Time Homebuyer Program.
6. The First Time Homebuyer client now may begin shopping for a home.
7. When client finds a home they wish to purchase, they make an offer and if accepted by the seller, they enter into a Sales Agreement contingent upon results of rehabilitation inspection and securing mortgage from the Connellsville Redevelopment Authority and lending institution.
8. Rehabilitation Inspection/Lead Based Paint Inspection is completed and discussed with client, if acceptable, bids are secured to complete the work.
9. Once bids are secured for rehabilitation work to be completed, client and Contractor enter into a contractural agreement.
10. Client makes formal application to lending institution for mortgage.
11. Rehabilitation of home will take place after official closing on property . Please note that if any lead based paint is found and in need of containment, this must be completed prior to homeowner moving into the property.
Income Limits:
1 Person: $ 35,300
2 Persons: $ 40,350
3 Persons: $ 45,400
4 Persons: $ 50,400
5 Persons: $ 54,450
6 Persons: $ 58,500
7 Persons: $ 62,500
8 Persons: $ 66,550
Please contact Paula Grubach, Program Manager, at 724 626 1645 for additional information or to make an appointment.
