Chester County's First Time Home Buyer Program

Nice young familyThinking of buying a home in Chester County? If so, you're in luck, Chester County has a terrific program for first time home buyers.

The county offers a maximum loan of $5,000 for the purchase of a home in a Chester County.

The loan is repaid when the home is sold, transferred or refinanced. The loan amount is based on financial needs of applicant. And here’s the best part, zero percent (0%) interest rate!

The closing cost assistance can be "coupled" with most loans (i.e. FHA, VA, USDA, conventional), including a Pennsylvania Housing Finance Agency home loan (PHFA).

Program Requirements


To be eligible for a loan, a borrower must:

  • Be 18 years of age or older;
  • Meet the income limits (see below)
  • Intend to occupy the property being purchased as a primary residence;
  • Be able to secure a 30 year, fixed rate mortgage from a local lending institution;
  • Not have owned a home in the last 3 years or be a displaced homemaker.

Buyer Cash Contribution

At least $1,000 towards the purchase of the home plus 2 mortgage payments in the bank.

  • Maximum allowable down payment 20% (Minimum LTV 80%);
  • Liquid assets of borrower after closing cannot exceed $10,000.

Eligible Properties must:

  • Be existing or newly constructed single family residences within Chester County;
  • Be detached, semi-detached, attached, or condominiums;
  • Meet HUD housing quality and lead-based paint standards;
  • Have a sales price that does not exceed FHA limits, adjusted annually per FHA.

Eligible Mortgage Programs - Fannie Mae | FHA | USDA

Mortgage loan qualifications

You must be creditworthy and able to qualify for a mortgage at or below the current market rate;

Income Eligibility

Your total gross household income must be at or below 80% of the median income, adjusted for household size.

I think I meet the requirements, now what?

Meet with a Housing Partnership of Chester County councilor, PRIOR to signing a sales contract. You are required to have a one on one counseling session and participate in two workshops. Once again, these counseling sessions must be completed PRIOR to buying a home!

This seminar will cover topics such as:

Pennsylvania Housing Finance Agency (PHFA)

Don't overlook the State of Pennsylvania home buyer programs for first time and non-first time home buyers. Some programs do not have income limits and the state also offers a down payment/closing cost assistance loan. Read more
Last updated 3/2018