Mortgage Application

Introduction

This program provides second or subordinated loans to eligible first-time buyers of Dauphin County homes. Applicants must attend and receive certification of completion from the Capital Region Community HomeBuyers Coalition Workshop or another HomeBuyers Workshop only when the above Workshop is not able to accommodate the applicant to be eligible for the program. The Capital Region Community HomeBuyers Coalition Workshop is a three night, six and a half-hour, Freddie Mac certified pre-purchase basic educational program, facilitated by the Harrisburg Fair Housing Council (HFHC) (717) 238-9540.

It is recommended that applicants attend the Capital Region HomeBuyers Coalition Workshop prior to entering into an Agreement of Sale, but applicants with executed Agreements are also welcome.

Once the applicant has received certification, she/he may proceed directly to any lender to make application for a First Mortgage. The second or subordinated mortgage available through this program can be initially projected by an approved counseling agency, realty agent or loan representative, and may be definitively calculated by the first mortgage lender. Review and approval of the Dauphin County Second or Subordinated Mortgage application will occur by the Dauphin County Department of Community and Economic Development staff (DCDCED) (717) 780-6250.

Applications may be received continuously throughout the year. Applications can be acquired through the first mortgage lender and/or approved agency. Funds will be distributed as they become available through Dauphin County mortgage and deed recording fees. When, and if, funds are depleted, the approved, but unfunded applications, will be held to await additional funding. The second or subordinated mortgage funds will be reserved upon receipt of firm commitments of first mortgages from the chosen lender.

The program may offer a second or subordinated mortgage to a maximum of $5,000 per home for first-time homebuyers. The loan can be used toward the price of the house and/or closing costs. No more than is absolutely necessary to fill the gap between the amount the homeowner is able to pay and the amount the lender is willing to pledge will be approved to enable the applicant to purchase the home.

Promissory Note, Mortgage and Loan Disclosure Statement documents will be executed and recorded on behalf of the County of Dauphin in the amount awarded. No interest is charged in relation to the mortgage nor are any monthly payments required to be made by the borrower.

Repayment of Loans

Repayment of the second or subordinated mortgage is required upon homeowner's resale of the home. Upon this sale, the original principle amount of the loan is due and payable in full. If the homeowner refinances, the original Dauphin County mortgage may be subordinated to the new first mortgage. Subject premises shall be released from the lien and operation of the written mortgage in the event of an arms length sale and in the event the net proceeds from the sale are not sufficient to satisfy the obligation, although the borrower shall continue to be personally obligated to repay the unpaid loan in such event.

Lease-Purchase Program

This program allows a family in a lease-purchase program to receive a second or subordinated mortgage by receiving a Letter of Commitment from the Dauphin County Affordable Housing Fund Board. The Letter of Commitment would establish the homeowner's qualification for the monies. The lease-purchase applicant must also complete the Capital Region Community HomeBuyers Coalition Workshop..

Click Below for the Dauphin County Housing Help Forms:

	Affordable Housing Disbursement Checklist	84.3 Kb
	Mortgage Application	16.5 Kb
	Mortgage Information Release	13.7 Kb