Chester County's First Time Home Buyer Loan

Chester County First Time Home Buyer Program Requirements

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; possibly the best closing cost assistance program in the state. The maximum loan of $10,000 for purchase of a home in a Chester County township and $12,500 for purchase of a home in the City of Coatesville or in a Chester County borough.

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, USDA, Fannie Mae), including a Pennsylvania Housing Finance Agency home loan (PHFA). It's possible to purchase a home in Chester County for only $1,000!


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.

Maximum Sales Price - $292,685

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


You intend to occupy the property purchased as a primary residence - no investors

Mortgage loan qualifications

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

Income Eligibility

You must be a first time home buyer or not owned a home within the previous three years and meet the household income limits in non-targeted area.

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: