The applicant must qualify according to the HUD family income guidelines.

The applicant MUST complete a HUD certified/affiliated firs-time homebuyer counseling program

The applicant must then begin the formal application process through one of the participating lenders.  The approved counseling agencies retain a list of these participating lenders with the special programs directed at first time homebuyers

With a clear knowledge of the price and type of home which he/she requires and can afford, an applicant will then enter into an Agreement of Sale to purchase a home.  Northampton County DCED will only accept an application from the participating lender after the homebuyer has signed an Agreement of Sale on a property.  The down payment and/or closing cost assistance provided to the homebuyer is attached to the property.

When a lender approves the first Mortgage, it will calculate the amount of subordinated mortgage required to enable the applicant to purchase the house.  The lender must submit a copy of its calculations to the Northampton County Department of Community and Economic Development for review.

Upon review, the applicant will proceed to settlement.  The applicant will purchase the home with the first mortgage provided by the participating lender and the subordinated mortgage provided by the Northampton County Affordable Housing Trust Fund.  A check will be issued from the Northampton County Affordable Housing Trust Fund to the title company/settlement agency for closing.