NHS is Berks County’s only Neighborworks â HomeOwnership Center. As a Homeownership Center, NHS adheres to rigid, nationwide standards for high-quality, comprehensive homeownership services. A well-informed homebuyer is better prepared to reach the goal of homeownership. On that premise, NHS offers a wide range of services to prospective homeowners. NHS pre- and post-purchase counseling, home repair counseling, and “Full-Cycle” lending services enable lenders, government agencies and nonprofit agencies to work together to assist families who might not qualify for—or know how to get—conventional home financing. Several local banks work closely with NHS to offer combined financing. Standard fixed rate mortgages for qualified low/moderate income, first-time homebuyers are available for home purchase with no maximum sales price. Repayment proceeds deposited in a revolving loan fund are "recycled" in the form of new mortgage loans to first-time homebuyers. This reinvestment in Reading City and Berks County neighborhoods plays a role in the NHS mission to revitalize the community.

2010 HUD Income Guidelines

The Path To HomeOwnership
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Step 1 - Orientation - An hour small group introduction to the guidelines of the NHS HomeOwnership Center first time homebuyer education and mortgage lending program. This meeting is the first step a customer will take on their path to homeownership. The HomeOwnership Center special financing is available to individuals and families who meet the Housing and Urban Development income guidelines.

Step 2 - Pre-Purchase Counseling
a. Credit Counseling-Having co mpleted the Orientation, a customer reviews his credit report with an NHS Mortgage Counselor. Is she ready to apply for a mortgage or are there obstacles to overcome first? If so, a plan of action is put in place.
b. Budget Counseling- A written net income budget is a requirement as part of the loan application, to establish that the customer is able to afford the anticipated mortgage payment and additional new expenses. $50 residual income requirement .

Step 4 - Loan Application - The NHS Mortgage Counselors assess the readiness of a potential borrower before a mortgage application can be taken. Credit, Capacity, Capital, and Collateral are the important four “C’s” that undergo their scrutiny. (These are important topics in the FASTRAC classes.) We want to be 99% sure that the application for the first loan will be approved by the NHS lender partner. Then the NHS loan committee does its job of reviewing the second mortgage for NHS approval.

Step 5 - Property Inspection and Repair Escrow - After an NHS required property inspection, a NHS HOP borrower can feel more secure about the condition of their new home. If repairs are required by NHS, the customer can borrow up to $3,000 as part of the mortgage loan.

Step 6 - Settlement Counseling- When it is time for the settlement meeting, the NHS Mortgage Counselor readies the customer with a review of the documents that will be signed at the closing table, as well as the important topic of home maintenance.

Step 7 - Post-Purchase Counseling- After the new homeowner has resided in their home for 4-6 months, NHS will request a follow-up appointment to review the household budget and any questions regarding the mortgage terms or other concerns that the new homeowner may have.