PITTSTON, LUZERNE CO. (WOLF) \u2014 Owning a home can feel out of reach for many families, but a new program in Pittston is aiming to change that. City leaders are now offering thousands of dollars in down payment assistance to help first-time and income-eligible buyers take that next step, tackling what many say is the biggest barrier to homeownership.<\/p>\n
\u201cWe 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,” said Shannon Bonacci, Director of Community Development.<\/p>\n
That\u2019s where Pittston\u2019s new Downpayment Assistance Program comes in. Funded through the Community Development Block Grant Program, it offers eligible buyers up to $8,500, or 50% of their down payment, to help get them to the closing table.<\/p>\n
Officials say the program is designed to meet a growing need in the city.<\/p>\n
\u201cThe city of Pittston is extremely cost burdened. We actually have one of the highest poverty rates in the state. We\u2019re constantly trying to figure out what programming would fit a need for our residents and kind of fill a gap,” said Bonacci.<\/p>\n
The initiative targets first-time homebuyers who meet HUD income guidelines, especially those trying to move out of renting, transition from subsidized housing, or leave multi-generational living situations.<\/p>\n
And demand is already there.<\/p>\n
\u201cWe have several public housing residents, and our waiting list to get housing assistance grows every day. It\u2019s clear that the demand is there for housing, especially affordable housing. We just see it all the time. In response to that, we wanted to figure out what tools can we put in our tool belt to be able to help people?\u201d said Bonacci.<\/p>\n
City leaders say the housing market itself is another challenge, particularly for first-time buyers.<\/p>\n
\u201cWe 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\u2019t need a full, complete renovation,” said Bonacci.<\/p>\n
Homes in that more affordable range, around $150,000 to $200,000, are selling quickly, making it even harder for buyers to compete.<\/p>\n
The program also helps applicants navigate another major hurdle: getting pre-approved.<\/p>\n
If needed, the city can provide documentation to lenders confirming the assistance.<\/p>\n
\u201cThe 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\u2019re 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 <\/p>\n
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.<\/p>\n
Meanwhile, the city is also working to increase housing opportunities, clearing blighted properties and making way for new builds.<\/p>\n
Officials say vacant lots are available, and a modular home initiative is already underway, but land is becoming limited.<\/p>\n
All part of a broader effort to tackle a housing shortage from multiple angles.<\/p>\n