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Considering buying your first home?

Take advantage of First Northern Bank and Trust’s First-Time Home Buyers Program. Our seasoned mortgage professionals will be with you throughout the entire process. If you have questions, we’re ready to provide answers. If you’re weighing various options, feel free to run a few ideas by us. Although this might be your first time going through the process of buying a home, we do it every day. Our experience and knowledge will make things easier for you and your loved ones.

  • Application fee is refunded at closing
  • Interest rates are offered at ¼% below our current residential mortgage rates.
  • Pre-authorized payments from a borrower’s First Northern Bank Checking or Savings Account are required for participation in this program.
  • Program runs through 12/31/2021 and is subject to availability

Borrower Qualifications

  • Must be a first-time home buyer (cannot own or have previously owned a home, investment, or residential)
  • 2021 Maximum gross yearly income per family is based on the property’s location. Examples: In the Allentown, Bethlehem, and Easton, PA Metropolitan Statistical Area (MSA 10900), the income limit is $64,320.00. In the Monroe County, PA Metropolitan Statistical Area (MSA 20700), the income limit is $63,280.00. In the Non-Metro portions of PA (MSA 9999), the income limit is $51,920.00. The income limit will not increase if the number of borrowers and/or the number of people living in the home increases.
  • Although we do offer Mortgages on mobile homes, they are not included in this First-Time Home Buyers Program.
  • Minimum of 3% down with Private Mortgage Insurance. Down payment and closing costs may be in the form of a gift. Borrower and property must meet all Mortgage Insurance requirements for Private Mortgage Insurance approval.
  • Borrower and property must meet all standard Freddie Mac guidelines and qualifying ratios
  • If Non-Traditional credit is required, borrower must provide four total sources of credit, one of which must be a housing payment

Affordable 3/2 Housing Guidelines and Requirements

3% Minimum Down Payment

Gifts must come from:

  • A relative, defined as related by blood, marriage, adoption, or legal guardianship
  • A domestic partner
  • A fiancé or fiancée

Reserves: Per AUS Guidelines

Ratios: Not to exceed 45%

Maximum Loan-to-Value (LTV): 90%

Loans must be manually underwritten by: Mortgage Insurance Company

Non-Traditional Credit

This is only required if a borrower has fewer than three open and active items on their credit report during the 12 months prior to the application date. We require a total of four sources of credit history (any items that appear on a credit report can be used, but one must be a housing payment).

For example, if a borrower has two credit cards listed on a credit report and no other activity over the last 12 months, they would submit one housing payment and one additional source of non-traditional credit (a bill for utilities, auto insurance, monthly medical costs, etc.). A borrower will need to show a 12-month history of on-time payments coming from an account in their name, paying a monthly bill in their name.

If a borrower does not have three items on their credit report and cannot show a housing payment, they would not qualify for a conventional mortgage loan. Instead, they may qualify for a USDA or FHA loan, as these programs do not require a housing payment and - if there are three credit scores being reported - may not require non-traditional credit at all.

Apply today. Call 1-800-344-2274 or visit any branch location.

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First Northern Bank & Trust | Fourth Street & Lafayette Avenue Palmerton, PA 18071

(800) 344-2274 | (610) 826-2239 Local | [email protected]

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