Homebuyer Requirements and Financial Assistance

The homes that are acquired and rehabilitated by Lackawanna Neighbors, Inc. are funded by various state and federal funding sources and therefore the homes must be sold to individuals and families that meet certain family-income guidelines depending on the source of funding used.   For example, if the home was acquired and rehabilitated with HOME or CDBG funds through the city of Scranton, homebuyers must meet the current year HUD Family-Income Guidelines which are displayed below: (Effective April, 2017)

                                                                                          Household Size

                                                                                  1 Person        $33,350

                                                                                   2 Persons     $38,100

                                                                                   3 Persons     $42,850

                                                                                   4 Persons     $47,600

                                                                                  5 Persons      $51,450

                                                                                  6 Persons      $55,250

To prepare homebuyers for homeownership and to make them better homeowners, Lackawanna Neighbors and other agencies offering financial assistance to assist with homebuying, require potential homebuyers to complete Homeownership counseling prior to purchasing a home.  Classes are conducted by the following HUD certified counseling agencies:

NeighborWorks of NEPA –   To register for counseling, please phone 570.558.2490.

United Neighborhood Centers (UNC) 414 Olive St., Scranton, PA  18503 and 66 N. Church St., Carbondale, PA 18407.   To schedule an appointment with a counselor, please phone  570.343.8835.

Due to specific regulations of the funding sources used, other homebuyer requirements are as follows:

Homes purchased by income-eligible individuals and/or families must utilize the home as their PRIMARY residence for a period of 15 years which means that it can not be used for speculation purposes.  The homebuyer and/or their family members must live in the home during this affordability period and it can not be rented to others.  If you sell the home within the 15 year affordability period, HUD recapture regulations will apply and a pro-rated amount of the assistance may have to be repaid to the city of Scranton.  This regulation is enforced through a deed stipulation and/or mortgage placed on the property and you will not be able to sell the home unless you comply with this requirement.

Lackawanna Neighbors does not provide financing for the purchase of the homes; however, down payment and closing cost assistance may be available through the following local government program:

City of Scranton’s Office of Economic and Community Development (OECD)  homebuyer program that offers forgivable grants up to $12,000 for down payment and closing cost assistance to income-eligible individuals and families that are purchasing homes in Scranton.   For information or to apply for financial assistance, please phone OECD at 570.348.4216 for further information.

 

 

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