Buying your first home in Taylor can feel out of reach when you look at down payment and closing costs. If you are wondering whether the Pennsylvania Housing Finance Agency can help you get there with less cash upfront and a steady fixed payment, you are not alone. Many first-time buyers in Lackawanna County pair a PHFA mortgage with assistance to make the numbers work. This guide breaks down what PHFA offers, how eligibility works in Taylor, and the exact steps to move from questions to a solid pre-approval. Let’s dive in.
What PHFA offers Taylor buyers
PHFA works through participating lenders to offer fixed-rate mortgages to qualifying buyers. You apply with a PHFA-approved lender, but the loan follows PHFA rules and is designed to support first-time buyers. Typical features include 30-year fixed options and competitive rates for eligible borrowers. You can review PHFA’s homebuyer programs and education resources on the agency’s official site under the Homebuyers section.
- Explore programs and education: PHFA Homebuyers
Who qualifies in Lackawanna County
PHFA uses county-level rules for eligibility, so homes in Taylor follow Lackawanna County limits. You will want to confirm three items early:
- First-time buyer status. PHFA generally requires that you have not owned a home in the past three years. Some exceptions apply, such as targeted areas or certain veteran categories. Check the current PHFA definition.
- Income and purchase-price limits. These limits are set by county and vary by household size and property type. Verify the most recent Lackawanna County numbers before you shop.
- Credit and debt-to-income. PHFA sets minimum credit score and maximum DTI standards that depend on the loan type. Your lender will clarify where you stand.
You can confirm today’s requirements and limits directly with PHFA or a PHFA-approved lender.
Down payment and closing cost help
PHFA offers down payment and closing cost assistance that can be combined with a PHFA first mortgage. This help typically comes as a subordinate second loan recorded at closing. Depending on the specific program, assistance may be deferred or include forgivable terms after a set period. Amounts and rules change, so you should confirm details with your lender and the current PHFA program page.
Most assistance options require approved homebuyer education before closing. Plan to complete the course early so you do not delay your timeline.
Mortgage Credit Certificate basics
PHFA also offers a Mortgage Credit Certificate that can reduce your federal income tax by letting you claim a portion of your annual mortgage interest as a tax credit. This can improve monthly affordability and may help you qualify. An MCC is especially useful if you expect enough tax liability to use the credit. Ask your PHFA lender whether pairing an MCC with your mortgage makes sense for your situation.
What homes can qualify in Taylor
Eligible properties typically include owner-occupied single-family homes and certain condominiums. In some cases, 2 to 4-unit owner-occupied properties may be eligible. PHFA has specific property standards and processes for condos, so get clarity early if you are considering a multi-unit or a condo. Your lender can confirm whether a particular Taylor property meets PHFA requirements.
Local costs to plan for
Your monthly budget should include more than the mortgage payment. In Taylor, factor in borough and school district property taxes, homeowner’s insurance, and utilities. At closing, you will also see county transfer tax and recording fees. Depending on the PHFA assistance you choose, some of these upfront costs can be offset by DPA. Your lender will estimate totals so you know how much cash you will need.
Step-by-step: from interest to keys
Follow this practical path tailored for Taylor buyers using PHFA.
Step 0: quick pre-work
- Gather photo ID, Social Security numbers, 30 days of pay stubs, two years of W-2s, recent bank statements, and a list of your monthly debts and rent history.
- Check your credit or allow a lender to pull it with your permission.
Step 1: confirm PHFA triggers
- Review the first-time buyer definition and property eligibility.
- Verify Lackawanna County income and purchase-price limits on the PHFA site.
- Note any homebuyer education requirements for the program you plan to use.
Step 2: contact a PHFA-approved lender
- Call a lender that participates in PHFA programs and serves Lackawanna County.
- Ask which PHFA first-mortgage products and DPA options they originate most often.
- Confirm whether they help with MCC applications and accepted education providers.
If you need guidance choosing a counseling option, you can find approved providers through HUD’s housing counseling resource.
Step 3: complete homebuyer education
- Take an approved course online or in person as required by the program and lender.
- Keep your completion certificate for your file and closing.
Step 4: submit your application and get pre-approval
- Provide income, asset, and credit documentation so the lender can underwrite your file.
- Make sure your pre-approval letter clearly notes PHFA financing and any DPA or MCC you plan to use. This helps sellers understand your offer.
Step 5: shop with a realistic budget
- Use your pre-approval and estimated property taxes to set a target price range for Taylor homes.
- If a condo or multi-unit is on your list, confirm PHFA property eligibility with your lender before you make an offer.
Step 6: make an offer and move to underwriting
- Once your offer is accepted, your lender orders the appraisal and completes PHFA paperwork.
- DPA or MCC documentation is prepared alongside the first mortgage.
Step 7: close with confidence
- DPA funds and MCC (if applicable) are applied according to program rules at closing.
- Ask your lender to explain how any secondary financing is recorded and what events trigger repayment.
For a broader overview of mortgage shopping and closing steps, see the CFPB’s Owning a Home guide.
Taylor first-time buyer checklist
Use this list to stay organized.
Before you call lenders
- Photo ID and Social Security number
- 30 days of pay stubs and two years of W-2s
- Federal tax returns if self-employed
- Two to three months of bank statements
- List of monthly debts and rent history
- Rough price range and Taylor neighborhoods you prefer
Questions to ask a PHFA lender
- Which PHFA first-mortgage and DPA options are you offering in Lackawanna County?
- What are today’s PHFA rates and your lender fees?
- What are the current county income and purchase-price limits?
- What homebuyer education do you accept, and when do I need it completed?
- How long does PHFA underwriting and closing typically take right now?
Documents for final closing
- Homebuyer education certificate
- PHFA disclosures and secondary financing terms if DPA is used
- Homeowner’s insurance binder
- Final closing funds after DPA is applied, if any
If PHFA is not the best fit
PHFA is a strong path for many first-time buyers, but it is not the only one. You may consider other federal options like VA for eligible veterans, USDA for properties in eligible rural areas, or FHA with a low down payment. A PHFA-approved lender can compare scenarios side by side so you can weigh payment, cash to close, and long-term costs.
How a local advisor helps
Financing and program rules can feel complex. A local agent who understands Taylor’s housing stock, taxes, and timelines can help you target homes that match your pre-approval and keep your offer competitive. You also benefit from steady communication between your lender, title, and the seller’s side so your DPA or MCC paperwork does not slow the closing.
With a boutique, client-first approach and deep roots in Greater Scranton, you get clear guidance, practical negotiation, and a smooth process from offer to keys.
Next steps
- Review today’s PHFA programs and Lackawanna County limits on the PHFA Homebuyers page.
- Complete approved homebuyer education early so you are ready for DPA.
- Connect with a PHFA-approved lender for a detailed pre-approval.
- Start touring Taylor homes in your price band with a plan that fits your payment and cash-to-close goals.
If you want local, step-by-step help aligning PHFA financing with the right Taylor home, schedule a quick consult with Michael S Taluto.
FAQs
What is PHFA and how does it help first-time buyers?
- PHFA partners with participating lenders to offer fixed-rate mortgages and optional assistance that can lower your upfront costs and improve affordability for eligible first-time buyers.
Do Lackawanna County income limits apply to homes in Taylor?
- Yes. PHFA eligibility uses county-based limits, so Taylor properties follow Lackawanna County income and purchase-price caps set by PHFA.
Can PHFA cover my entire down payment and closing costs?
- PHFA down payment assistance can often cover part or all of your required down payment and some closing costs, but the amount and terms vary by program and year.
Do I have to repay PHFA down payment assistance?
- Some assistance is deferred and repaid when you sell, refinance, or pay off the loan, while other programs include forgivable terms. Confirm your specific DPA’s rules with your lender.
Can I use PHFA if I owned a home in the past?
- PHFA generally requires that you have not owned a home in the last three years, though certain exceptions may apply. Check the current PHFA definition with your lender.
Are condos and multi-unit homes eligible for PHFA in Taylor?
- Some condos and 2 to 4-unit owner-occupied properties can be eligible, but PHFA has property standards and approval requirements. Verify eligibility with your lender early.
Where do I find approved homebuyer education for PHFA?
- You can review options on the PHFA site and locate counseling providers through HUD’s counseling resource.
