Affordable Home Purchase Program
Lower Merion Affordable Housing Corporation, in cooperation with Lower Merion Township, has an affordable first-time homebuyers program that reduces monthly payments by providing a second mortgage at zero interest with no monthly payments.
The amount of assistance will be determined by the buyers’ actual household income in order to provide an affordable monthly payment of 31% of their gross income. The second mortgage will reduce the expected payment to $1,100 – $1,500 per month depending on the income of the eligible household. Special preference will be given to people who currently live or work in Lower Merion and to active Lower Merion volunteer firefighters.
Homebuyers must meet eligibility requirements including income restrictions, sufficient income for required first mortgage, acceptable credit and sufficient savings for the 3% down-payment. All households must have at least two people. Total gross household income cannot exceed the following:
2018 HUD INCOME LIMITS
|2 Person||3 Person||4 Person||5 Person|
Homebuyers must comply with program requirements and agree to resale restrictions. A zero interest second mortgage will be placed on the property for the difference between the value of the property and an affordable first mortgage amount. The second mortgage is expected to be at least $100,000. Up to fifty (50%) of the second mortgage will be forgiven. Twenty-five (25%) will be forgiven after ten (10) years and an additional twenty-five (25%) after twenty (20) years. The balance remains with the property. There are no monthly payments required for the second mortgage. As long as the homeowner complies with the program requirements, the second mortgage is only repaid upon the sale or transfer of the property. The primary program requirement includes living in the home as a principal residence. The home cannot be used as a rental property.
So far, eight homes have been acquired, rehabbed and sold. The homes were located in Ardmore, Belmont Hills and Bryn Mawr.
For more information, click here to read our flyer.
For more information visit www.genesishousing.org or call 610-275-4357.
Applications will also be available on www.lowermerion.org (the Township website) under Building & Planning, Economic and Community Development.
This project has been funded through HUD’s Community Development Block Program. If you have any questions please call Genesis Housing Corp. at 610-275-4357 or Lower Merion Township’s Community Development Division at 610-645-6271.