Chester County First-Time Homebuyer Program: Loans up to $40,000

Overview

Chester County's First Time Homebuyer Program is administered by the Housing Partnership of Chester County (HPCC) in Downingtown. It combines required homeownership education with direct financial assistance for low- and moderate-income buyers purchasing in Chester County, PA.

Assistance amount and terms

• Loans of up to $40,000 toward down payment and closing costs, based on the applicant's financial need
• 0% interest, recorded as a second mortgage lien
• Repaid when the home is sold, transferred, or refinanced — no monthly payments

Eligibility requirements

• Age 18 or older
• Total gross household income at or below 80% of the area median income, adjusted for household size
• No home ownership (no deed in your name) for the 3 years before applying, or status as a displaced homemaker
• Must occupy the home as your primary residence
• Able to secure a 30-year fixed-rate mortgage from a local lending institution
• Contribute at least $1,000 of your own funds; liquid assets after settlement cannot exceed $15,000
• The home must be located in Chester County

Required counseling

Before purchasing, applicants must complete a group counseling class (up to eight hours) plus an individual one-on-one credit and budgeting session. Importantly, you may not sign an agreement of sale before completing the individual and group counseling — so start early.

How to apply

1. Download the application from the Housing Partnership of Chester County website (English and Spanish versions available).
2. Return the completed application by mail or to the drop boxes at the HPCC office — applications are not accepted by fax or email.
3. Include the non-refundable application fee by money order.
4. A HUD-certified housing counselor will contact you after review.

Loan amounts and income limits change over time. Contact HPCC at 610-518-1522 for current guidelines. This article is for general information and is not a commitment to lend.