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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!

Drawing of a bank buildingThe Federal Home Loan Bank of Pittsburgh offers a free down payment (or closing cost assistance grant) for qualified first-time home buyer(s) in Pennsylvania, Delaware, and West Virginia. Read more

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

Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.

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 the 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:

  • You must be at least 18 years old.
  • Meet the income requirements (see below)
  • Intend to live in the acquired home as your main residence;
  • You must be able to get a 30-year, fixed-rate mortgage from a local lending institution.
  • You must not have owned a house in the previous three 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 the 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:

  • Closing/Settlement Day
  • Final Walk Through
  • HUD-1 Settlement Sheet
  • Importance of Budgeting
  • Inspections Life as Homeowner
  • Looking at Personal Finances
  • Obtaining a Mortgage
  • Potential Financial Rewards
  • Preparing for Closings Preparing for Homeownership
  • Title Insurance
  • Understanding your credit report

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