First-Time Homebuyer Assistance Programs for 2022 in Pennsylvania

Last Updated on August 7, 2022 by Danielle McDonald

Mortgage Assistance for Homebuyers in Pennsylvania

Upper Darby Township First Time Homebuyer Program

Upper Darby Township has a First Time homebuyer Program as part of its goal to maintain neighborhoods. This program is funded by Community Development Block Grant Funds.

Available Assistance

The program offers closing payment assistance up to $6,000.00 to eligible buyers. Federal funding is used to provide financial assistance. This program is subject to certain requirements by the Federal government. The amount/gap between maximum amount that a mortgagee can lend and the total purchase cost determine the Township Assistance will provide. The total purchase price includes the cost of the house, plus the closing costs, and it is also reduced by the mandatory 3% down payment of the buyer. The home’s total cost cannot exceed $150,000

Eligibility Requirements 

The program’s guidelines require that all applicants are first-time homebuyers and have never owned a home in the past three years. In addition, they must also use the home purchased as their primary residence. The Upper Darby Township is eligible for single family, vacant, or owner-occupied properties. Properties that are for rent are only qualified if they are vacant upon the time of the agreement of sale, or if the current tenant is the buyer.

Income Limits 

  • 1-person household: $52,950 
  • 2-person household: $60,500 
  • 3-person household: $68,050 
  • 4-person household: $75,600 
  • 5-person household: $81,650 
  • 6-person household: $87,700 
  • 7-person household: $93,750 
  • 8-person household: $99,800      

Montgomery County First Time Homebuyers Program

The Montgomery County First Time Homebuyers Program was established and managed by the commissioners and the Department of Housing and Community Development. It provides assistance funds for closing costs and down payments to low-, moderate-, and median-income households who are interested in buying a home in Montgomery County.

Available Assistance 

The amount of grant is determined by the applicant’s household financial situation, the selling price of properties, and household assets. The maximum amount of assistance is 10% of the participant’s estimated affordable sale price. It cannot exceed $10,000.00. There is no interest and repayment due if the home is sold, conveyed, granted, vacated, transferred, or abandoned as a primary home within 15 years of the purchase date, or used as an investment or income source property.

Eligibility Requirements 

All applicants must

  • be a buying a home for the first-time, or have not owned a house in the past three years;
  • have a collective household income that is below the area median income;
  • have a reliable credit and the ability to qualify for a mortgage (Conventional, FHA, or VA) at or below the current market rate;
  • be a resident and/or be employed full time in the Montgomery County during the Program application and closing;
  • have the intention to live in the property as your primary residence;
  • complete the counseling program before signing any contract of sale to purchase real estate;
  • have at least $3,000.00 in liquid assets during your application (no cash gifts or equity allowed towards the first 3%)

Income Limits 

  • 1-person household: $52,950 
  • 2-person household: $60,500 
  • 3-person household: $68,050 
  • 4+ -person household: $75,600 

Washington County Homebuyer Assistance Program

The Homebuyer Assistance Program was created by the Redevelopment Authority of the County of Washington. It provides financial assistance to potential, first-time homebuyers for the purchase and rehabilitation of qualified housing units.

Eligibility Requirements 

A first-time homebuyer must not have owned a housing unit in the last 3 years, unless she/he is a displaced homemaker. The homebuyer must be able to give cash payment of 3% of the housing unit’s purchase price. Homebuyers with moderate income must be able to get a mortgage at 80% from a participating lending institution. Homebuyers with low income must be able to borrow 71% from a participating lending institution. The pre-purchase counseling course must be completed by homebuyers. The house must be used as the primary residence. And after rehabilitation, the value must not exceed $164,000.

Income Limits  

  • 1-person household: $47,500 
  • 2-person household: $54,300  
  • 3-person household: $61,100  
  • 4 -person household: $67,850  
  • 5-person household: $73,300 
  • 6-person household: $78.750  

Beaver County First Time Buyer Program

Beaver County’s First Time Buyer Program provides down payment and closing cost assistance. However, this is only for applicants with an income at or below 80% of the area’s median income.

Available Assistance 

You’ll receive an amount of assistance depending on your individual needs. Additionally, you, as an applicant must not have $5,000 in liquid assets at the time of closing. The assistance grant is forgivable at 20% each year, then would totally be forgiven after 5 years. However, if your home is sold before the 5 years, you must pay the remaining grant. 

Income Limits 

  • 1-person household: $47,500 
  • 2-person household: $54,300 
  • 3-person household: $61,100 
  • 4-person household: $67,850 
  • 5-person household: $73,300 
  • 6-person household: $78,750 
  • 7-person household: $84,150 
  • 8-person household: $89,600 

Chester County First Time Home Buyer Program

The HPCC (Housing Partnership of Chester County) has an assistance program for first time home buyers (individuals or families) who have low-moderate income.

Available Assistance 

The good thing about this assistance is that it has a zero-interest loan. If you’re purchasing a home in Chester County, you cannot receive an assistance exceeding $10,000. Additionally, if you’re purchasing a home in the City of Coatesville, you cannot receive an assistance exceeding $20,000. 

Eligibility Requirements 

All applicants must be of 18 years or older. The applicant should also have a total household income gross at or below 80% of the median income. There should also be no liquid assets of the borrower after closing cannot exceed $15,000. The house should be occupied as the primary residence of the individual or family. It’s important that the applicant should be able to secure a 30 year, fixed rate mortgage from a local lending institution. The applicant should also not have owned a home in the last 3 years or been a displaced homemaker. 

Property Guidelines 

The home you’re purchasing with the program funds should meet HUD housing quality and lead based standards. Newly constructed single-family, detached, semi-detached, attached, or condominiums within Chester County are the eligible property types for the program. The sales price should not exceed FHA limits, the home must be insurable, and per FHA would be adjusted annually. Additionally, if the location is within a Special Flood Zone Area (SFZA), you’ll have to have insurance under the National Flood Insurance Program (NFIP).

Income Limits 

  • 1-person household: $54,150 
  • 2-person household: $61,850 
  • 3-person household: $69,600 
  • 4-person household: $77,300 
  • 5-person household: $83,500 
  • 6-person household: $89,700 
  • 7-person household: $95,900 
  • 8-person household: $102,050 

Cumberland County Affordable Housing Trust Fund First-Time Home Buyers Program

The Affordable Housing Trust Fund First-Time Home Buyers Down Payment and Closing Cost Assistance Program is Cumberland County’s program for qualifying first-time homebuyers. They provide up to $5,000 for those who qualify for the program.

Available Assistance  

Down Payment and closing costs assistance provides up to $3,000. This program only assists a family with a gross household income between 80% and 100% of the County’s Median Income. Those below 80% of the County’s Median Income may qualify for up to $5,000.

This program will triple the amount of money saved by the buyers. The initiative will pay $3 in financial assistance for every $1 of savings the buyer spends to purchase their home. The match cannot be more than $3,000 for households with a gross annual income between 80% and 100% of the County’s median income, and $5,000 for households with a gross annual income less than 80% of the County’s median income. This aid comes in the form of a five-year forgiving loan with no interest.

Eligibility Requirements 

All candidates must be first-time homebuyers and show proof of the funds to be matched, which must be the participants’ own finances. After the settlement, the participants’ household assets shall not exceed $30,000. Participants are not allowed to contribute more than $15,000 to the home’s acquisition (seller assistance, gift funds and lender assistance are included in this restriction). With the application, applicants must include a current pre-approval letter from a lender. Their total gross annual household income also cannot exceed the U.S. Department of Labor’s 100 percent median income criteria for the current fiscal year. Housing and Urban Development Department (HUD).

Income Limits 

80% AMI 

  • 1-person household: $47,550 
  • 2-person household: $54,350 
  • 3-person household: $61,150 
  • 4-person household: $67,900 
  • 5-person household: $73,350 
  • 6-person household: $78,800 
  • 7-person household: $84,200 
  • 8-person household: $89,650 

100% AMI 

  • 1-person household: $59,500 
  • 2-person household: $68,000
  • 3-person household: $76,500 
  • 4-person household: $84,900 
  • 5-person household: $91,700 
  • 6-person household: $98,500 
  • 7-person household: $105,300 
  • 8-person household: $112,100

Delaware County Homeownership First Program

The Delaware County Homeownership First Program assists qualifying homeowners with down payment and closing costs. The overall amount of aid will not exceed $5,000, and it will cover up to 2% of the new home’s down payment.

Eligibility Requirements

Each borrower is assessed based on their income, credit history, and accessible assets. However, all applicants must meet specific criteria to be considered for the Homeownership First Program.

  • Applicants must be first-time homebuyers. They should not have owned a property in the previous three years.
  • Borrowers must also contribute a minimum of $1,000 toward the home’s purchase.
  • They must also attend a minimum of one individual therapy session and eight hours of mandated group homeownership counseling. Once the client develops strong credit and completes all of the items on their Action Plan, they will receive a Certificate of Achievement for successfully completing homeownership counseling.

Income Limits

  • 1 person household: $39,200
  • 2 person household: $44,800
  • 3 person household: $50,400
  • 4 person household: $56,000
  • 5 person household: $60,500
  • 6 person household: $64,950
  • 7 person household: $69,450
  • 8 person household: $73,900

They allow single-family, residential, owner-occupied dwellings (detached, twin, rowhouse, townhouse, or apartment condominium) that meet county housing quality standards. The home’s maximum sale price cannot exceed $218,000, and it must be located within the county’s boundaries.

HOMEstead Downpayment and Closing Cost Assistance Loan

The Pennsylvania Housing Finance Agency (PHFA) offers a variety of programs to help eligible homebuyers with the upfront costs of homeownership, one of which is the HOMEstead Downpayment and Closing Cost Assistance Loan.

Available Assistance

In the form of a no-interest, second mortgage loan, the program provides homebuyers with up to $10,000 (and a minimum of $1,000) in down payment and closing cost help. HOMEstead funds are forgiven at a rate of 20% each year for the next five years. PHFA also provides the initial mortgage at the same rate as the Keystone Home Loan program.

Eligibility Requirements

Borrowers must meet the minimum down payment on whoever is insuring or guaranteeing the mortgage to qualify for the HOMEstead program. The funds from the program may be able to provide the remainder of the down payment and the closing costs. They may also provide additional support to make the property more affordable depending on the family’s needs.

Those who are under PHFA’s Keystone Home Loan Program can apply for the HOMEstead program as long as they’re eligible. Additionally, the home should also meet other property guidelines specified by federal rules. The federal regulations for Lead-Based Paint Hazard Reduction applies to HOMEstead Second Mortgage Programs. In conclusion, houses built before 1978 are not eligible for this assistance. 

The PHFA, with its network of lenders and brokers will process and close the loan, after which PHFA will buy the loan. Afterwards, the borrowers will make mortgage payments directly to PHFA until the end of your loan.
This is similar to the Down Payment first-time homebuyer assistance programs in Oregon.

Keystone Advantage Assistance Loan Program

The Pennsylvania Housing Finance Agency (PHFA) offers eligible homebuyers assistance in meeting the upfront costs of homeownership through different programs, one of which is the Keystone Advantage Assistance Loan Program.

The PHFA has assistance programs to meet upfront costs of homeownership with different programs. The Keystone Advantage Assistance Loan Program is one of those assistance programs. They offer qualified borrowers with a second mortgage loan to help with down payment and closing costs on the property. 4% of the purchase price or market value or $6,000 in assistance (whichever is less) is what will be received by eligible applicants. Then, the assistance loan will be amortized over ten years without interest. However, it should be paid monthly. 

Eligibility Requirements

All applicants should have a minimum credit score of 660. Those applying for this loan should remember that the assistance is only for the minimum down payment and/or closing cost requirement. Additionally, the minimum loan amount is $500. Then, the applicant’s liquid assets cannot reach greater than $50,000 after deduction of funds for the loan to close. The liquid assets are the cash and funds (from savings accounts, bonds, stocks, certificates of deposit, etc.). However, the retirement accounts (401(k)s, IRAs, and pension funds) are not part of the liquid assets as long as they cannot be withdrawn without penalty. These retirement accounts can only be withdrawn from when the borrower’s age is of the age requirement. 

You cannot combine this assistance program with another PHFA assistance program unless it’s the Access Modification Loan Program. However, you can use it on conventional, FHA, VA, or RD loans. 

Are you interested in the First-Time Homebuyer Assistance Programs in Rhode Island?

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