Pittston introduces $8,500 down payment aid for homebuyers
Addressing the Housing Crisis in Pittston
Owning a home is often seen as a significant milestone, yet for many families, it feels increasingly out of reach. In response to this challenge, the city of Pittston has launched a new initiative aimed at making homeownership more accessible. This program provides financial support to first-time and income-eligible homebuyers, addressing one of the most common barriers to purchasing a home: the down payment.
According to Shannon Bonacci, Director of Community Development, the issue is widespread. “We know that homeownership is tough. Nationwide, it hits home and in Luzerne County as well, many of which could make a monthly mortgage payment but might not have the funds saved to do a large down payment. Especially when down payments are like 20% and interest rates keep inching up.”
The new Downpayment Assistance Program, funded through the Community Development Block Grant Program, offers eligible buyers up to $8,500 or 50% of their down payment. This support can be crucial in helping potential homeowners reach the closing table.
Meeting a Growing Need
Pittston faces unique challenges, including one of the highest poverty rates in the state. Officials are continuously looking for ways to address these issues and fill gaps in available resources. “We’re constantly trying to figure out what programming would fit a need for our residents and kind of fill a gap,” said Bonacci.
The initiative specifically targets first-time homebuyers who meet HUD income guidelines. This includes individuals looking to move out of renting, transition from subsidized housing, or leave multi-generational living situations. The demand for such assistance is evident, with public housing waiting lists growing daily.
Navigating the Housing Market
The housing market itself presents another challenge, particularly for first-time buyers. “We tend to see houses at the upper echelon selling for $500,000 or you see houses in disarray and selling for under $100,000 but it really is hard to find houses that are kind of in that middle market, a starter home, that might need some paint and some carpet but it doesn’t need a full, complete renovation,” said Bonacci.
Homes in the more affordable range, around $150,000 to $200,000, are selling quickly, making it even harder for buyers to compete. To help navigate this complex landscape, the program also assists applicants in getting pre-approved for a mortgage.
Supporting Homebuyers
If needed, the city can provide documentation to lenders confirming the assistance. “The getting pre-approved for a mortgage and having the credit to get approved for the amount that they want to put towards the house is an issue. This program helps by us providing a letter, if needed, to the lender they’re looking to get pre-approved through, and we provide a letter claiming that we will be providing the extra $8,500,” said Kristen Walters, community development and grants specialist for the city of Pittston.
To qualify, buyers must be pre-approved through a bank, complete required homeownership courses, and purchase a home within city limits. The program partners with NeighborWorks to provide training on everything from insurance to long-term maintenance, helping ensure buyers are set up for success.
Expanding Housing Opportunities
In addition to the down payment assistance, the city is working to increase housing opportunities by clearing blighted properties and making way for new builds. Vacant lots are available, and a modular home initiative is already underway. However, land is becoming limited, prompting officials to explore multiple angles to tackle the housing shortage.
Anyone interested in applying or learning more is encouraged to contact the city’s Office of Community Development. This initiative represents a significant step forward in addressing the challenges of homeownership and ensuring that more families can achieve their dream of owning a home.
