First-time homebuyers looking to purchase property in Philadelphia will now have an opportunity to receive $10,000 from the city.
The Philly First Home program offers up to 6% of the purchase price to locals looking to buy their first home in the city.
The program works by creating a lien on the property for any finance assistance received. During the first 15 years of ownership, the lien will become due and payable upon the sale or lease of the home or the refinancing of the first mortgage to take cash out of the property.
To qualify, you must be:
- A first-time homebuyer or someone who has not purchased a home for at least three years
- Be a resident of Philadelphia for at least three years
- Purchase a home within county limits
- Have a household income at or below 120% of the area median income (that works out to $72,565 for a single person or $103,615 for a family of four)
- Complete housing counseling an approved agency
After 15 years, the lien will be forgiven, according to the city. Interested homebuyers can contact counseling agencies starting next month.
City officials are set to announce more details about the new program May 9.