First Time Home Buyer Program
What qualifies you as a first time homebuyer? For the sake of our program, here’s what you need to know:
- Must be a first time homebuyer* for this assistance program
- Fixed interest rate 30 year loan with no mortgage insurance
- Income limits do apply, 100% or less of the median income for given location
- As little as 3% down, 1% of purchase price must come from borrower’s own funds
- 6% maximum seller contribution
- All applicants are required to participate in First Time Home Buyer education
*Borrower must not have had ownership interest in a property in the last three years.
Mortgage Myth #1 – You Need to Put 20% Down to Buy a Home
Check out this short video to see how two of our mortgage team members can quickly debunk this myth and help you learn more about our down payment assistance options.
First Time Home Buyer Down Payment Grant
If you qualify for our First Time Home Buyer Program, you may also be eligible for a down payment grant. A grant can help you raise the money you need immediately for a home. The down payment often proves to be an obstacle for first time homebuyers. They don’t have money from a previous home sale that they can roll over to put down on a new place.
We offer the down payment grant to help more people get into the homes they have always dreamed of owning. Our conditions include:
- Must be used in conjunction with the PeoplesBank First Time Home Buyer loan
- To be used toward a down payment & closing costs of a single family, primary residence
- Maximum grant of $3,000 – does not need to be repaid
- Borrower must contribute $1 for every $2 of grant money allocated
- Ex. to receive the full $3,000 the borrow must contribute $1,500 from their own funds
We offer grants to help more people achieve their goal of homeownership. When you use our grant program, you don’t have to pay back the money you receive. Grants are conditional, but they do not become debt. With a grant, you can eliminate the need to borrow additional funds and pay more toward the home initially.
One advantage of using the grant program is that you can make a more significant financial investment in your home to start. This process can lower your monthly payments. Many first time homebuyers save for a down payment on a home, but it can take years to make progress. A grant allows you to get into your home quicker by eliminating the wait to save extra money.
Grants give you the opportunity to take any money you have saved and put it toward something else in your new home.
First Front Door
Do you need up to $5,000 in cash for down payment and closing costs? Through First Front Door, we will match every $1.00 contributed with $3.00 in grant assistance, up to a maximum of $5,000.
To qualify, you must:
- Be a first time home buyer (which means you haven’t owned a home within the past three years)
- Secure a first mortgage through PeoplesBank
- Have an income at or below 80 percent of the area median income
- Complete at least four hours of homeownership counseling prior to purchasing the home
Subject to availability. Subject to credit approval of first mortgage. Additional terms and conditions may apply. See a representative for more details.
Helping to Keep the American Dream Alive
You found your perfect new home. Here’s the perfect financing for your purchase. Unlike some other banks with first-time homebuyer programs, PeoplesBank will guide you through every step of the process.
Through our program for first time homebuyers, we’ll help you answer the tough questions that come with homeownership. Consider the following factors as you begin the process of buying a home:
- How long you plan to stay in the home: It’s no secret that a house is a significant investment. Are you planning to stay in the area for at least five to 10 years? If not, you might want to reconsider your reasons for buying a home.
- Your income: As you go through the mortgage process, your income history will play a role in determining whether you qualify for a loan. You should make sure you have a steady source of income that you can count on over the next few years. Otherwise, it will be easy to get in over your head.
- Your savings: In addition to your mortgage payments, you should consider your down payment and closing costs. It’s also a good idea to put some savings aside for repairs and upkeep.
No Down Payment? No Problem!
Learn more about our Zero Down Loan and just pay closing costs!Learn More