The Lancaster Housing Opportunity Partnership Down Payment Assistance (DPA) Program is offered by the Lancaster Housing Opportunity Partnership (LHOP). By offering a 0% interest loan with no monthly payments, LHOP can offer up to $7,000 in down payment and closing cost assistance. Whether or not the loan is approved is dependent on the availability of funds. Interested applicants must be working with one of LHOP’s partner lenders and must be purchasing a property in Lancaster County. As of 2020, these partners include BB&T, Caliber Home Loans, Ephrata National Bank, First National Bank, Fulton Bank N.A., First Citizens Community Bank, HomeSale Mortgage LLC, M&T Bank, Mortgage Network, New American Funding, PeoplesBank, PNC Mortgage LLC, RMS Mortgage, Santander Bank, Sierra Pacific Mortgage, and USDA Rural Development.
In order to qualify, individuals must be first-time home buyers and cannot have owned a home in the previous three years. There can be no non-occupant co-borrowers on the loan. Applicants must contribute a minimum of $1,000 of their own funds towards the home purchase. All borrowers and co-borrowers must finish a LHOP Home Buyer Course and have to use the house as their year-round primary residence within 60 days of closing. All borrowers and co-borrowers must also have a most recent permanent address that is located in Lancaster County, and must be US Citizens, permanent resident aliens, or non-permanent resident aliens with valid Social Security Numbers who are eligible to work in the United States. Applicants will have to have a meeting with a qualified Budget Counselor before settlement.
Interested applicants have to fall within certain expected annual household income limits, which as of 2020 are as follows:
- 1 member - $42,700
- 2 members - $48,800
- 3 members - $54,900
- 4 members - $60,950
- 5 members - $65,850
- 6 members - $70,750
- 7 members - $75,600
- 8 members - $80,500
As of 2020, the purchase price limit is $187,000 for existing homes and $230,000 for new construction. Manufactured homes are not eligible for this program, unless they are attached to a permanent foundation and the lot is a part of the sale. All properties must have a house inspection, a wood-destroying insect inspection, an appraisal, and comply with 24 C.F.R. Part 35 (Lead-Based Paint Poisoning Prevention in Certain Residential Structures) requirements. The sales agreement must also have an executed LHOP Addendum.
These requirements may change and the consumer should verify all information prior to proceeding with the program.
Other programs in Pennsylvania:
- Delaware County Homeownership First Program
- HOMEstead Downpayment and Closing Cost Assistance Loan
- Keystone Advantage Assistance Loan Program