Pennsylvania Home Buyer

Montour County First Time Home Buyer Program

Nice house with sold signWhy rent, when the Monroe County offers down payment and closing cost assistance to first time home buyers? The assistance loan is a second mortgage up to a maximum of $5,000 or 10% of the purchase price, (whichever is less). And here's the best part, NO monthly payments are required for the assistance loan, and NO interest is charged while you occupy the home. Repayment of the second mortgage is only required when the homeowner(s) refinances the home, no longer lives in the house, or transfers the title.

Eligibility Guidelines:

Check markYou must be a first-time homebuyer. All borrowers may not have owned a home within the last 3 years. The borrowers and co-borrowers may not have an ownership interest in any other real estate or business other than a business that is their primary source of income.

Check markYour total household annual income should be less than 100% of the Monroe County median income (adjusted annually)

Check markYou must reside in Monroe County for one full year prior to application, or have qualified current or potential employment.

Check markYou are required to be a U.S. Citizen or Resident alien.

Check markProspective home buyers are required to successfully complete home ownership counseling.


What kind of credit score do I need to qualify for an FHA loan?

The FHA will go as low as 580, however, mortgage lenders can require a higher credit score.

Can the seller pay the down payment on a conventional loan?

Unfortunately, no. The seller is permitted to pay a percentage of the closing costs depending on the down payment amount, but not the down payment.

How much is the down payment for a conventional loan?

Currently, five percent is required for the conventional loan down payment.

Can you buy a house without title insurance?

Yes, if you pay cash. But if you are using a loan to purchase the home, the lender will require you (or the seller) to purchase title insurance. The buyer pays the title insurance premium in Pennsylvania. In some states, the seller is responsible for the “owner’s policy” and the buyer is responsible for the “lender’s policy”. Title insurance can be expensive, but it can be even more costly if a problem arises after taking title to the property.

Can you get a mortgage loan with no credit?

Yes, the FHA requires lenders to use alternative sources to develop a credit history. The lender will ask you to provide rent receipts, cancelled checks for utility bills, car and renter’s insurance payments, and any other documentation to prove that you pay your bills on time.

Can you get a gift for a conventional loan?

Yes. Cash gifts are acceptable for conventional loans provided the money transfer is properly documented and the donor provides the lender with a signed “gift letter” stating that the cash gift is just that, a gift and not a loan.

Is a conventional loan better than FHA?

The choice between an FHA and conventional loan will depend on several variables. The number one consideration is down payment. The conventional loan requires a 5% down payment. The FHA requires a 3.5% down payment. Do you need the seller to pay any of your closing costs? If so, the FHA allows the seller to pay up to 6% of the sales price, regardless of the down payment amount. The conventional loan limits the seller paid closing costs to 3% with a down payment of less than 10%. Are you purchasing an investment property? The Federal Housing Administration (FHA) does not permit investors loans. The conventional loan does permit investor financing. And last, but not the least as the saying goes, what is your credit score? Conventional loans require a higher fico score than FHA.

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