York leaders are teaming up with Fulton Bank to make it easier for the city’s 300-plus employees to buy homes in the White Rose city.
York City and Lancaster-based Fulton Bank on Thursday announced a new program that offers mortgage assistance and other home-buying benefits to city employees.
York Mayor C. Kim Bracey said she hopes the program will encourage city employees “to plant your flag here and become a permanent homeowner.”
The partnership between Fulton, a subsidiary of Fulton Financial Corp., and York City allows qualified employees to finance 97 percent of a home purchase and receive up to 6 percent in seller assistance, Fulton officials said.
Employees who buy city homes also will be exempt from requirements to purchase private mortgage insurance. Known as PMI, the insurance is typically required for mortgages that cover more than 80 percent of a home’s cost.
The PMI protects the lender if a homebuyer stops making loan payments.
York City employees will have access to additional benefits as part of Fulton’s Homebuyer Advantage Plus mortgage program, which is part of the financial institution’s Fulton Forward initiative.
The main goals of Fulton Forward are promoting affordable housing, financial literacy and overall economic development.
Bracey, who announced the start of the program at a press conference at York City Hall, said she hopes it will be a big step in efforts to “attract and retain city employees.”
York City employees other than police are required to live in the city.
For the city employees hoping to use the program, there is no income limit if their prospective home is in a Census tract that is designated low- or moderate-income, Fulton officials said.
For most of York City, the household income limit is $56,240 to take part in the Homebuyers Advantage Plus mortgage and closing-cost assistance program, they said.
Craig Roda, Fulton Bank chairman and CEO, noted that “the investment in the purchase of a home is also an investment in the community where the home is located.”
For young professionals in particular, Roda said he hopes the new partnership “increases the appeal of buying a home” in York.
Fulton Financial is a $19-billion financial holding company headquartered in Lancaster’s Penn Square.
Fulton Bank operates more than 100 branches in Pennsylvania, Delaware and Virginia.