Pennsylvania Home Buyer

Montgomery County First Time Home Buyer Program


Nice house with sold signEligible participants may receive assistance with closing costs up to 8% of the sales price, and if your income is below 80% of the median income (see below), the Montgomery county will chip in an additional 2% toward the down payment for a total assistance of 10% of the sales price.

The mortgage loan is repaid if the home is sold or transferred within the first 8 years. You can refinance your first loan without paying off the closing cost assistance loan. The loan amount is based on financial needs of applicant. And here's the best part, zero percent (0%) interest rate! The loan remains in effect for 8 years.

Participants will be required to complete a counseling package and meet with a Counselor one on one to go over budget, credit, mortgage financing and home ownership responsibilities. The counseling session will be a few hours. Home buyers who are employed full time within Montgomery County at the time of the program application and closing are also eligible! Nice!

Program Eligibility

    To be eligible for a loan, the household must . . .
  • Currently reside and/or be employed full time within Montgomery County at the time of Program application and settlement.

  • Be creditworthy and able to qualify for a mortgage at or below the current market rate.
  • Intend to occupy the property as your primary residence.
  • Have a household income below the Montgomery County area median income.
  • Be a first time home buyer or not owned a home within the previous three years.

Complete the required counseling program prior to executing any contract of sale for the purchase of real estate.
Have a minimum of $3,000.00 liquid assets at the time of application (must be of your own funds).


Home Buyer Cash Contribution

The minimum cash requirement from the prospective home buyer is a down payment of three percent (3%).

Two months' mortgage payments in the bank in addition to the 3% down payment. Applicants must use their own liquid assets and may receive a matching gift up to 3% prior to home buyer funds. Assistance is not available if applicant has 10% or more of the sales price to put towards purchase.

The following investments are not considered in the 10% limit:
Ira's, 401K's, Roths

Assistance amount is based on the selling price, liquid assets, closing costs, mortgage amount, and other fees paid in the acquisition of the property.

Maximum Sales Price - The maximum sales price is determined by the applicant's income, monthly debt, etc.

No Seller Assist! - Attention RealtorsĀ® and mortgage companies. No seller assist (seller paid closing costs) is permitted with this program. Learn more about seller assistance.

Home Warranty & Home Inspection - The Department of Housing & Community Development requires a home inspection and a home warranty. Home inspectors must complete a housing quality standards form. This form will be furnished to the applicant at the counseling session.

Property Types
Property purchased under the program must:

  • Be acceptable to the primary lender and insurer of the property.
  • Meet Housing Quality Standards, local codes, and lead based paint standards.
  • Have a sales price that does not exceed Program's determined affordability.
  • Be an existing or newly constructed single family residence situated in Montgomery County.

Eligible Mortgage Programs

Conventional loan, FHA loans, USDA loans

This closing cost assistance program can be used along with the Pennsylvania Housing Finance Agency first mortgage. (PHFA)

Grant Terms

Grant amount is based on the financial need of the applicant's household, household assets, and selling price of property. Assistance up to a maximum of 10% of the estimated affordable sales price for participants. Interest rate of zero percent (0%).
Repayment only if:

Used as an income producing property or investment. After 8 years, the loan is forgiven
Vacated or abandoned as a primary residence within 8 years from the date of purchase of the property.
Home is conveyed, sold, granted or otherwise transferred.







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.Closing cost calculator


First time home buyer classes listed by county



Learn about Pennsylvania's home buying programs. Read more

phfa logo