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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.

Montgomery County's First-Time Home Buyer Loan

Happy familyThe Montgomery County Home Buyer's Program was created to help low, moderate, and median-income families purchase their first home in Montgomery County, Pennsylvania.

The homebuyer's program is a down payment/closing cost assistance loan. The program can provide as much as 10% of the sales price (not to exceed $10,000).

The loan is paid back only when the house is sold or transferred during the first 8 years. The total assistance is dependent on the selling price, closing costs, mortgage amount, and other required costs to purchase the house.

And here’s the best part, the grant is zero percent (0%) interest rate! The loan remains in effect for 8 years.

Repayment of this loan is only required if: 

  • The house is sold, granted, conveyed, or transferred to another person;
  • Or, is changed into an investment property;
  • The house is vacated or abandoned as a primary residence within 15-years from the settlement date;


You are required to live in the home as your primary residence.


You must qualify for a first mortgage loan at the current interest rate;

Montgomery county residency or employment

At application and up to closing, you must reside and/or be employed full time within Montgomery County

Home buyers making loan applicationHome buyer education

Prior to executing any contract of sale for the purchase of a home, you are required to complete a home-buyer counseling program and meet with a Counselor for a one on one counseling session. The home buying counselor will discuss the importance of establishing a budget, maintaining a good credit rating, mortgage financing and home ownership responsibilities. The counseling session can last a few hours.

Assets for down payment & closing costs

The program requires that you have at least $3,000.00 in your checking, saving or investment account(s) at application (liquid and must be of your own funds).

You must provide at least three percent (3%) of the purchase price for the down payment. You must also have at least two months’ mortgage payments in the bank along with the 3% down payment.

Applicants have to make use of their own assets and may obtain a matching gift from a relative up to 3% prior to receiving the home buyer funds. The assistance loan is not available to applicants with 10% or more of the purchase price to put towards the purchase. 401K's, Ira's, and Roths are not considered in the 10% limitation.

All assets have to be completely disclosed at application, if not, the application will be declined.

The applicant must immediately notify the first-time Home Buyer's Program if the applicant's financial information changes prior to closing.

Eligible participants may receive closing costs assistance up to 8% of the purchase price if your household income is 80% of the median income for Montgomery County or less; and if the household income is under 80% of the median income, the county will chip in an additional 2% towards the down payment for a total assistance of 10% of the sales price.

Maximum sales price

The maximum sales price is based on the applicant's earnings, monthly obligation, etc.

No seller assist!

Attention Realtors® and mortgage lenders. No seller closing cost assistance (seller paid closing costs) is allowed with this program.

Home warranty & home inspection

The Department of Housing & Community Development mandates a home inspection and home warranty. Home inspectors are required to complete a housing quality standards form. This form will be provided to the applicant at the counseling program.

Property types:

Existing or recently built single-family home situated in Montgomery County;
Have an agreed upon sales price that does not exceed the Program's established affordability.
Meet local codes, Housing Quality Standards, and lead-based paint standards.
Be acceptable to the insurer of the property and mortgage lender.

Eligible mortgage programs

Conventional (Fannie Mae & Freddie Mac) | FHA | USDA

This closing-cost assistance program can be used in conjunction with the Pennsylvania Housing Finance Agency (PHFA 1st mortgage).

Grant application procedure

The grant money is available to all eligible applicants on a first come, first serve basis. Applicants must be income and loan-eligible PRIOR to entering into an agreement of sale (or putting a deposit on a property). There is a $25.00 non-refundable fee payable at the time of application.

Be aware, you must make application and receive counseling before you sign a sales contract!
Income Eligibility - You must be a first-time homebuyer or not owned a home within the previous three years. You must meet Montgomery County household income limits.

Pennsylvania Housing Finance Agency (PHFA)

The Montgomery County Home Buyer's Program can be used along with the first-time home buyer programs through the State of Pennsylvania. The PHFA loan programs are available for first-time home buyers and non-first-time home buyers. The PHFA programs provide below market interest rates. Read more