Jodi Williams, Deputy Executive Director of Blair County Community Action, explains the application process for a new first-time homebuyer assistance program Friday. Mirror photo by Gary M. Baranec

HOLLIDAYSBURG — Blair County residents buying a house for the first time may be eligible for a grant of up to $5,000 to put toward closing costs and down payments.

With part of the revenue from a county-levied fee on deed and mortgage transfers, grants are going to become available through the First-time Homebuyer Assistance Program, a partnership created and supported by Blair County Community Action and the county’s Department of Social Services.

The goal of the program, Community Action Executive Director Sergio Carmona said, is to help Blair County residents achieve the dream of home ownership.

Community Action has a long history of counseling people on what it takes to buy and maintain a house.

A county-levied fee on deed and mortgage transfers — and not the county’s general fund supported by property tax revenue — is generating money so that grants can be offered toward closing costs and down payments, Commissioners Chairman Bruce Erb said.

This is an option that first-time homebuyers should explore, Erb said after a quick review of the program’s income guidelines outlined in a brochure. A family of four, Erb pointed out, would qualify for a grant as long as their annual household income doesn’t exceed $52,100.

Those same guidelines show that a single person could qualify for a grant as long as his or her annual income is less than $36,500. And for two people, the income needs to be less than $41,700.

Income guidelines, based on limits set by the U.S. Department of Housing and Urban Development, are updated annually.

Community Action Housing Counseling Director Billie Egan said Thursday that the program gives the agency another way to help the community by encouraging home ownership.

“We think it’s going to be popular, and we’re excited about introducing it,” she said.

To be considered for a grant, a first-time homebuyer must be pre-approved for a mortgage.

But applicants who are not pre-approved can work with Community Action on efforts to help them gain pre-approval, Carmona said.

The agency already has programs to help people develop a savings plan, repair their credit history, build good credit and work on budgeting plans designed to help them maintain home ownership.

“We want to help the consumer become a better consumer … and to create smarter consumers,” Carmona said.

To get the program started, Community Action has scheduled an educational meeting on Aug. 1 for local banking and lending institutions. Thereafter, the time frame for awarding grants toward closing costs and down payments will depend on each client’s finances and educational needs.

Grant applicants will also be asked, based on the program’s brochure, to provide proof of having lived in Blair County for at least 90 days.

In addition, applicants must be buying a single family dwelling inside Blair County and occupying that dwelling as their primary residence. Applicants will also need to sign a written agreement pledging to retain the property for at least five years.

Mirror Staff Writer Kay Stephens is at 946-7456.

Informational meeting set

Representatives of banks and lending institutions interested in learning about the Blair County First-time Homebuyer Assistance Program are invited to an informational meeting at 10 a.m. Aug. 1 at the Blair County Community Action, 2100 Sixth Ave., Altoona. Those interested should contact Billie Egan at 946-3651, Ext. 120, or by email at billie.egan@blaircap.org before July 27.