FAQ’s – NHS – NeighborhoodLIFT

NeighborhoodLIFT down payment assistance is provided as a five-year forgivable loan for owner-occupied properties. As long as the borrower(s) resides in the home, the loan will be forgiven at 20 percent each year on the anniversary date of settlement. If the house is no longer a principal residence or the property is transferred, repayment of the balance of funds will be immediately due. For any questions on this please reach out to NHS of Greater Berks directly.

Yes. Income limits are set for each market for NeighborhoodLIFT funds. The income limits are calculated based on all borrower income. In Philadelphia, borrower income may not exceed $54,000 as determined by Federal Financial Institutions Examination Council.

No. Only borrower(s) income is calculated. In Philadelphia, all borrower income may not exceed $54,000.

A complete list of participating partner lenders is available here [A list of participating partner lenders will be available soon.]

Homebuyer education is a class that provides information about the home buying process. Borrowers must complete a total of eight hours of education. It is available virtually, through self-guided online platforms or in-person; course offerings vary by agency. Homebuyer education must be provided by a HUD-Approved housing counseling agency that has adopted the National Industry Standards for Homeownership Education and Counseling. View list of NeighborhoodLIFT-eligible providers here [A list of NeighborhoodLIFT-eligible providers will be available soon].

Homebuyer education must be completed prior to submitting a request for NeighborhoodLIFT down payment assistance.

No. Only homebuyer education certificates from HUD-Approved Housing Counseling Agencies that have adopted the National Industry Standards are eligible for NeighborhoodLIFT funds. View list of NeighborhoodLIFT-eligible providers here [A list of NeighborhoodLIFT-eligible providers will be available soon].

Yes. The NeighborhoodLIFT Home Ownership Counseling Initiative offers credit and homebuying counseling to individuals at no cost. This counseling is an added benefit and does not meet the eight hours of homebuyer education required to receive LIFT down-payment assistance. A list of these counseling providers can be seen here [A list of counseling providers will be available soon].

Yes, if you currently own a home but will be selling it prior to closing on the NeighborhoodLIFT property, you can still be eligible for the program. At the time of closing, you may not own any additional properties including investment properties.

Short sale properties are eligible for the program. When you are ready to move forward in the LIFT process, you must upload the purchase agreement for the short sale property, which must be signed by the buyer and the seller. The lender (lien holder of short sale property) must ratify the agreement prior to closing. NeighborhoodLIFT funds can be used in connection with the financing of a Wells Fargo short sale, but only if Wells Fargo is not the new first mortgage lender on the short sale purchase. Another lender must originate the new first mortgage loan.

NeighborhoodLIFT down payment assistance funds may be used for any eligible purpose including closing cost assistance, down payment assistance, or borrower minimum out-of-pocket investment if allowed by the first mortgage loan program. NeighborhoodLIFT funds may cover the closing costs or out-of-pocket requirements of an FHA first mortgage or other type of first mortgage loan; however, for an FHA mortgage the borrower must still provide their own 3.5 percent down payment. You should consult directly with your first mortgage lender and NHS of Greater Berks to determine how NeighborhoodLIFT program funds may be used in connection with your home purchase.

Yes. There may be other programs eligible and available for layering together with NeighborhoodLIFT down payment assistance. Programs sponsored by local municipalities or the state of Pennsylvania could potentially be included. View information on other assistance programs here [Link for assistance programs will be available soon].

Eligibility for each program is determined by the program administrators. Contact them directly to find out if you are eligible for their programs.

Yes. Wells Fargo REO (real estate owned) properties are not eligible for NeighborhoodLIFT funds. To learn if a property is a Wells Fargo REO click here https://reo.wellsfargo.com/Home-Search.aspx.

Buyers determined to be eligible will be issued a LIFT Qualification/Reservation Letter holding funds for 90 days. During this time borrowers will need to shop for and sign a contract to purchase an eligible home. Buyers who have a fully signed contract will be required to upload the contract. If the property is eligible, a LIFT commitment letter will be issued that is valid for 90 days or 180 days if the property is new construction, with a copy sent to the first mortgage lender. The first mortgage lender will then prepare documents for closing and provide copies of the required documents to NHS of Greater Berks at least 10 calendar days prior to closing. NHS of Greater Berks will then have all documents prepared for the closing.

You will not move for in the NeighborhoodLIFT process until you have a fully executed purchase and sale agreement. You should upload your purchase and sale agreement upon execution. You will receive a LIFT commitment letter approximately three business days after NHS of Greater Berks reviews your purchase and sale agreement. Be sure to notify your first mortgage lender that you are under contract and have received a NeighborhoodLIFT commitment letter. The first mortgage lender will then prepare documents for closing and provide copies of the required documents to NHS of Greater Berks at least 10 calendar days prior to closing. NHS of Greater Berks will then have all documents prepared for the closing.

No, you do not have to be under contract to submit a request.

No. Extensions are only available for clients who have met the program requirements and are preparing for settlement.

It depends on where the client is in the process. If this happens the client should follow up with NHS of Greater Berks directly.

Clients who are not able to qualify for a mortgage loan should contact New Kensington CDC or HACE to explore course offerings and/or housing counseling opportunities.

You can come back and check this webpage to see if funds become available in the future. We encourage you to reach out to New Kensington CDC or HACE and schedule a counseling appointment to determine your homeownership options

It depends. If you have a purchase contract when submitting your request for funds and you are selected for the program, you will need a minimum of 30 days to close. If you are selected for funds and receive a LIFT Qualification/Reservation letter for funds and find a property during your 90-day reservation period, you will need at least 21 days to close from the day you submit your fully signed purchase contract to NHSGB.

Frequently Asked Questions