First-Time Homebuyer's Program
Dauphin County First-Time Home Buyers
Second or Subordinated Mortgage Program
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 an accredited counseling group. Dauphin County approved counseling agencies for certificates are:
Harrisburg Fair Housing Council
2100 North 6th Street
Harrisburg, PA 17110
CCCS of Western PA-Harrisburg
2000 Linglestown Road, Suite 302
Harrisburg, PA 17110
Community Action Commission
1514 Derry Street
Harrisburg, PA 17104
Pathstone Corporation Pennsylvania
1625 N. 3rd Street
Harrisburg, PA 17102
It is recommended that applicants attend the counseling 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 $3,000 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.
Click Below for the Dauphin County Housing Help Forms: