Home Home Buyer Home Seller Per Diem Interest Credit report Search
Real Estate Tax first-time Programs Title Insurance Transfer Tax Calculators Interest Rates
FHA Loan VA Loan USDA Loan Conventional Loan Jumbo Loan Reverse Mortgage

Closing Cost Assistance

PHFA logoThe Pennsylvania Housing Finance Agency (PHFA) offers a below market interest rate for first and non-first-time homebuyers. PHFA also provides a down payment/closing cost assistance loan for qualified home buyers. Read more

Free grant money!

The Federal Home Loan Bank of Pittsburgh offers a no-interest loan (or grant to assist with closing costs) to qualifying first-time home buyers in Pennsylvania, Delaware, and West Virginia. Read more

How much does it cost to buy a house in Pennsylvania?

Use the PADrawing of a bank building mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.

Allegheny County's First-Time Home Buyer Loan

young familyRegrettably, the Allegheny County first-time home buyer program has been suspended due to a budget shortfall.
Both first-time and repeat home purchasers should familiarize themselves with the Pennsylvania Housing Finance Agency's (PHFA) home buyer programs, which include a down payment and/or closing cost assistance loan.

Eligibility - All residents of Allegheny County who satisfy income guidelines are eligible, with the exception of those who live in the City of Pittsburgh.
A down payment of roughly 3.5 percent is required as a minimum (FHA).

Down payment and closing cost assistance of up to $5,000 is available to qualified borrowers earning up to 100 percent of the local median income.

For further information on the closing cost and down payment assistance programs, please see the sections below.

Allegheny County First-Time Home Buyer Program Requirements

  • Occupancy - You must occupy the property purchased as a primary residence - no investors
  • Mortgage Limit - $248,900 (FHA base figure)
  • Maximum Sales Price - Approximately $294,750. Existing homes and new construction
  • Mortgage Program - FHA
  • Minimum Down Payment - 3 1/2% (FHA)
  • Term - 30-years only
  • Eligible Areas - All areas of Allegheny County except the City of Pittsburgh
  • Interest Rate - 3.60% (with 1 ½ points) or 3.75% (with 0 points)
  • Income Limit -
    $64,000 per household (1-2 persons)
    $73,600 household (3 or more persons)

Property types - Must be a single-family residence. Condominiums, townhouses and mobile homes permanently affixed to a Borrower's individually owned lot are eligible. Houses that include rental space or commercial space are ineligible.

Home buyer counseling - Participants' are required to obtain pre-purchase credit counseling (Homebuyer Education Counseling). A Certificate of Completion must be submitted to the mortgage company to be made a part of the Borrower(s) loan file. An acceptable Certificate of Completion may be obtained by the Borrower(s) from a PHFA or HUD certified counseling agency. Participants will also be required to meet with a counselor for a one on one counseling session to go over budget, credit, mortgage financing, and home ownership responsibilities. The counseling session will last a few hours.

Allegheny County closing cost and down payment assistance

Participants in the first-time homebuyer program may qualify for up to a maximum of $5,000 in closing cost and down payment assistance program.

There will be two (2) levels of closing cost and down payment assistance available to eligible Borrower(s):
1. Applicants whose income is between 61% and 100% of the median income of Allegheny County (adjusted for family size) may be eligible to receive 50% of the required closing costs and down payment;
Nice two story house2. Applicants whose income is at or below 60% of the median income of Allegheny County (adjusted for family size) may be eligible to receive 75% of the required closing costs and down payment.

A second lien (in the form of a Second Mortgage) in the amount of the closing costs and down payment assistance will be placed on the property for a period of 5 years with no graduated forgiveness. The Second Mortgage is forgiven on the first day of the sixth year and upon receipt of a satisfaction fee from the Borrower(s).

To be eligible, borrowers must meet all program criteria, and household income must be at or below 100% of the area median income.

Allegheny targeted area homebuyers program

Prospective home buyers in the following census areas are not required to be first-time home buyers. All other requirements of the Allegheny county first-time home buyer program are applicable.

House to be purchased must be located within one of the following census tracts:
Clairton: 4923
Duquesne: 4869
Homestead: 4838
Rankin: 5140
W. Homestead: 4824
McKees Rocks: 4644
McKeesport: 5509, 5519, 5521

Pennsylvania Housing Finance Agency (PHFA)

The Pennsylvania Housing Finance Agency (PHFA) offers home loan financing to first-time and repeat home purchasers, providing down payment and/or closing cost assistance up to $6,000.