Homeownership Program

www.ApartmentsInPittsburgh.net
 

Phone (412) 456-5000 extension 2301

Fax (412) 456-5259

Eligibility and Steps to become a Homeowner

Tenant Minimum Eligibility Requirements
 

-City of Pittsburgh current HACP Public Housing or Section 8 tenants.

-You must be in either HACP public housing or receiving Section 8 Voucher assistance or you have received a letter of eligibility from the HACP
 Occupancy Department before you are eligible to receive Homeownership Program benefits.
 

-First-time home buyer and the single-family home is located within the City of Pittsburgh
 

-Minimum $17,000 year income and working full-time (30  hours week for (1) one year) or is a person with a disability or

  is a senior citizen

- All HACP benefits are subject to budgetary constraints and limited funding.

Homeownership Program - Steps to Purchase and Own Your Own Home

1.         STEP 1:  START HERE - Public housing or Section 8 tenant is to enroll in a Homeownership Education Class

            Public Housing or Section 8 tenants are to contact and enroll in a required 8 hour education class

             at: 

                        Urban League of Pittsburgh

                        610 Wood Street

                        Pittsburgh, PA 15222 

     CALL      Kelly Allen to enroll in the Homeownership education class

                       412-395-3950 ext. 1044

     FAX        (412) 395-3970

If you are not currently a HACP public housing
tenant or you are not on Section 8, you must apply for and receive a letter of eligibility from the HACP Occupancy Department.

A.     You need to apply for Public Housing or Section 8 at our Occupancy Department.

          Call Occupancy Department Phone Number (412) 456-5030 to obtain an application

          The Occupancy Department is located at 100 Ross Street, 4th Floor, Downtown.

 

Maximum income limits you can have to be eligible for either public housing or Section 8

2.          STEP 2:  Tenant Obtains a Financial Credit Score at Urban League of Pittsburgh

             While the Public Housing or Section 8 tenant is taking the Urban League education class, simultaneously

             the tenant is to meet  an Urban League credit counselor to obtain their financial credit

             score and review the tenant’s finances. 

      CALL      Urban League of Pittsburgh:  Kelly Allen
                 412-395-3950 x 1044

             Before you can proceed to Step 3, a bank or mortgage lender requires a minimum tenant financial credit score range of 580 to 600+.

             If a tenant’s credit score is below 580, the tenant is provided credit counseling and credit restoration.

             Urban League will aid the tenant to help them restore their credit with credit counseling and credit restoration.

3.          STEP 3:  Mortgage Pre-approval letter

             Upon completion of  Step 2 above,  which includes  completing Urban League Education class and

             a tenant credit score exceeding 580 to 600+ along with their finances in good order,  then the tenant/buyer is referred to banks

             such as 1st Niagara Financial Group, Huntington Bank, National City Bank or Dollar Bank where the tenant/buyer will make
            an application to determine if

             they qualify for a Mortgage Pre-Approval letter.

            Lenders

         Huntington Bank

         336 Fourth Avenue

         Pittsburgh, PA 15222

         Contact: Debbie Tawney Newsome

         412-227-4828

         fax 412-231-7423

         debborah.tawney@huntington.com

         Joe McGinn
         412-666-8060
         joseph.mcginn@huntington.com

             

         1st Niagara Financial Group
       11 Stanwix Street
         Pittsburgh, PA 15222
         Contact: Mary Jo Malesky
         412-926-0458
         maryjo.malesky@fnfg.com

                 

         Dollar Bank

         3 Gateway Center

         First Floor, East

         Pittsburgh, PA 15222

         Contact Person:  Bonnie Cash Booth or Regina Sandidge

         412-261-8018

         fax 412-261-5133

         bbooth@dollarbank.com
         rsandidge@dollarbank.com

         Fifth Third Bank
         4724 Liberty Avenue
         Pittsburgh, PA 15224
         Contact Person: Tamara Davis, Senior Loan Officer
         412-688-7216
         fax 412-688-7218
         Tamara.Davis@53.com
 

            The banks will provide the tenant/buyer with a Mortgage Pre-approval letter and the letter will state a mortgage amount

            a lender is willing to provide the tenant/buyer.  Essentially, the Mortgage Pre-approval letter states how
            much money the bank is able to loan the tenant/buyer for a home mortgage.

            HOME IMPROVEMENT LOAN

            If  your home is in need of  SUBSTANTIAL REPAIRS, contact:

            Urban Redevelopment Authority
         Housing Recovery Program (HRP)

         200 Ross Street
         Pittsburgh, PA 15219-2069
         Contact Person:  Alicia Majors, Program Officer
         412-255-6698
         fax 412-255-6645
         amajors@ura.org
 

4          STEP 4:   FAX or Mail your Mortgage Pre-approval Letter to the Homeownership Program

         Make sure your mortgage pre-approval letter includes your Gross Annual Income that was used

         by the bank or lender to determine the home loan amount you qualify for.

            When a tenant/buyer receives their Mortgage Pre-approval letter from the bank, tenant/buyer is to FAX or Mail a copy of

            their Mortgage Pre-approval letter to:

            Homeownership Program

            Jack Lewis

            FAX 412-456-5259

            PHONE 412-456-5000 ext. 2301

            200 Ross Street, 6^th Floor

            Pittsburgh, PA 15219-2068

5.      STEP 5:   Shop to Purchase Your Home

 .       Tenant/buyers who have received a Mortgage Pre-approval letter are financially qualified home buyers shopping to purchase

          a home within the City of Pittsburgh. Before the tenant/buyer makes an offer to purchase a home, please talk to

          Jack Lewis at the Homeownership Program and our phone number is 412-456-5062.

          Sales Agreement and Home Inspection:  

        a.      The home must be inspected by an independent professional and selected by the buyer.  The
                 independent inspector must provide a copy of the inspection report to both the buyer and to HACP.  \

                 Items cited within the inspection report as "Poor" or "Fail" must be repaired by owner prior to closing.
                 HACP shall have discretion to disapprove the unit for assistance under the homeownership option.
        b.      A contingency clause must provide that the purchaser is not obligated to pay for any necessary
                 repairs cited as home deficiencies within the inspection report. 
        c.      The seller is required to pay for any necessary repairs as cited within the inspection report.

        d.      HACP will reimburse the buyer for the cost to obtain an independent property inspection.

         Sales Agreement and Seller Certification Form:  
 

          HACP may not approve a home for sale if HACP has been informed by HUD that seller is debarred,

          suspended, or subject to limited denial of participation.  HACP may deny approval of seller for any

          reason stated above. HACP can provide the Seller Certification Form upon request.

6.        STEP 6:  The tenant/buyer makes an offer to purchase a home with a sales agreement.

           Once the sales agreement is signed by both the tenant/buyer and the seller (s) of the home, the tenant/buyer is to FAX or MAIL

           the signed sales agreement to the Homeownership Program listed in STEP 4.

           Once the Homeownership Program receives your signed sales agreement, together we will guide you through the few remaining
           steps.

7.       Tenant/Buyer Closing Costs

        Once you the tenant/buyer have a signed sales agreement, what closing costs are you the tenant/buyer responsible for paying?

                                              Section 8 Tenant/Buyers Closing Costs Obligations

            The maximum amount of financial assistance is $7,000 for homeowner’s insurance, home warranty, and closing costs assistance. This benefit is for both public housing and Section 8 buyers.

          a.     If you are a Section 8 tenant/buyer, you must pay at least 1% down payment of the sale price of your home.

                  Example:  Your Home purchase price is $50,000  x  1% your down payment = $500 you the tenant/buyer must pay at closing

          b.     You the tenant/buyer must pay the prepaid City, County and School taxes due at closing.  The closing company is

                  also known as a settlement company and they will provide you a settlement statement also known as a HUD-1 form.
                  The closing company / settlement company will provide you with a HUD-1 form approximately 3-5 days before your closing.
                  The closing day is the day you sign the agreements to purchase your home.   The HUD-1 statement will list in detail the
                  amount of prepaid City, County, and School taxes you will pay at closing.

          c.     You the Section 8 tenant/buyer may be required to pay private mortgage insurance (PMI) which may be required by the lender.

          d.     The Housing Authority Homeownership Program may pay other closing costs for you the tenant/buyer up to a maximum amount of
                   financial assistance of $7,000 for homeowner's insurance, home warranty and closing costs assistance.

                  Make sure you bring photo identification such as a driver's license to the closing and you must use a cashier's check to pay your

                  down payment and prepaid City, County, and School taxes. You can not use personal checks at closing.

          _____________________________________________________________________________________________________________

                                                           Public Housing Tenant/Buyers Closing Costs Obligations

The maximum amount of financial assistance is $7,000 for homeowner’s insurance, home warranty, and closing costs assistance. This benefit is for both public housing and Section 8 buyers.

         e.     If you are a Public Housing tenant/buyer, you must pay at least 1% down payment of the sale price of your home.

                 Example:  Your Home purchase price is $50,000  x  1% your down payment = $500 you the tenant/buyer must pay at closing

         f.     You the tenant/buyer must pay the prepaid City, County and School taxes due at closing.  The closing company is

                  also known as a settlement company and they will provide you a settlement statement also known as a HUD-1 form.

                  The closing company / settlement company will provide you with a HUD-1 form approximately 3-5 days before your closing.
                  The closing day is the day you sign the agreements to purchase your home.   The HUD-1 statement will list in detail the

                  amount of prepaid City, County, and School taxes you will pay at closing.

       g.      You the public housing  tenant/buyer may be required to pay private mortgage insurance (PMI) which may be required by the lender.

         f.       The Housing Authority Homeownership Program may pay other closing costs for you the tenant/buyer up to a maximum amount of
                   financial assistance of $7,000 for homeowner's insurance, home warranty and closing costs assistance.

                  Make sure you bring photo identification such as a driver's license to the closing and you must use a cashier's check to pay your

                  down payment and prepaid City, County, and School taxes. You can not use personal checks at closing.