Zero Down Loan

No Down Payment? No Problem!

We understand that one of the biggest hurdles of homeownership is saving for a down payment. It can take years to save up enough to purchase your dream home and it can be a large financial burden. Or, maybe you’ve already saved up enough for a down payment, but would rather spend that money on furnishing your new home, completing renovations, or save it for something else entirely!

Now, the choice is yours with our Zero Down Loan. No down payment is needed when you combine the Zero Down Loan with our First Time Home Buyer program or our Welcome Home loan – just pay closing costs!

Zero Down Loan Highlights

• Long term, fixed rate, second lien loan to be used in conjunction with a PeoplesBank first lien
• To be used toward a down payment of a single family, primary residence
• Finance up to 100% of the home sales price
• Must contribute 1% of purchase price from own funds toward closing costs
• Gift funds and seller concession are permitted

Eligibility

The Zero Down Loan may only be used with the PeoplesBank First Time Home Buyer Program or Welcome Home Loan in qualified areas**.

First Time Home Buyer Program

• Must be a first time home buyer*
• Fixed interest rate, long term loan with no mortgage insurance
• 100% or less of median income for given area
• When used with the Zero Down Loan,  1% of the purchase price must be contributed from own funds toward closing costs
• 6% maximum seller contribution
• All applicants are required to participate in First Time Home Buyer education

Welcome Home Loan

• Fixed interest rate, long term loan with no mortgage insurance
• No income limits
• Property must be located in a qualified area**
  • Examples of a qualified area include areas within York City, Lancaster City, and Baltimore City
  • Ask us if your potential new home is in a qualified area or use the link and instructions below to find out
• When used with the Zero Down Loan, 1% of purchase price must be contributed from own funds toward closing costs
• 6% maximum seller contribution
• All applicants are required to participate in a home buyer education course

Is My Property Located in a Qualified Area**?

• Open the FFIEC Mapping System
• Enter the property address in the address bar at the top of the page and select “search”.
• Click on “Census Demographic Data” and a box will pop up on top of the map.
• The “Tract Level Income” of the property must be listed as low or moderate for the property to qualify.

Contact Us Today!

**Census tracts designated by the Census Bureau as low to moderate income.

*Borrower must not have had ownership interest in a property in the last three years.
Flexible terms available. Subject to credit approval. Program may be withdrawn at any time. Additional terms and conditions may apply, see a representative for more details.