Allegheny County's First Time Home Buyer Loan

young familyUnfortunately, the Allegheny County first time home buyer has been suspended for lack of funding. First time home buyers and non-first time home buyers should learn about the Pennsylvania Housing Finance Agency's (PHFA) home buyer programs; including the down payment and/or closing cost assistance loan. Last updated 3/2018

ELIGIBILITY - All Allegheny County residents who meet income limits are eligible except those who reside in the City of Pittsburgh. A minimum down payment of approximately 3.5 percent is required (FHA).

Up to $5,000 in down payment and closing cost assistance is available to eligible borrowers and up to 100% of area median income.
See below for more information on the Closing Cost and Down Payment Assistance Program.

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, townhomes 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 COUNCILING - 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 Cost 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 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