Chester County First Time Homebuyer Program

What is Chester County First Time Homebuyer Program?

Chester County First Time Homebuyer Program is a deferred second loan for homebuyers in Chester County, Pennsylvania, administered by Chester County Department of Community Development (operated by the Housing Partnership of Chester County).

• The Chester County First Time Homebuyer Program (Chester County Dept of Community Development, HUD HOME-funded, operated by the Housing Partnership of Chester County) provides pre-purchase counseling and a 0% interest deferred second-mortgage loan for down payment and closing costs to first-time buyers at or below 80% AMI purchasing anywhere in Chester County. The loan is based on need, up to $40,000, repaid in full upon sale, transfer, or refinance.
• 0% interest deferred loan for down payment and closing costs.
• Loan up to $40,000 based on need.
• No monthly payments until sale/transfer/refinance.
• Free HUD-certified counseling (English and Spanish).
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal HUD HOME Investment Partnerships Program funds (24 CFR Part 92) through Chester County Department of Community Development.

How much assistance does it provide?

Chester County First Time Homebuyer Program offers up to $40,000 in assistance.

• Award tiers: County-wide max loan $40,000; based on individual financial need.
• Buyer contribution: Minimum $1,000 of borrower's own funds toward purchase, plus proof of two months of reserves at settlement.
• Amounts are the program's published maximums, not an offer — Chester County Department of Community Development (operated by the Housing Partnership of Chester County) determines any individual award.

Do you have to pay it back?

Chester County First Time Homebuyer Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by All funds repaid when the property is sold, transferred, or refinanced.
• The assistance is recorded in Second mortgage lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Chester County First Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Chester County First Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• At or below 80% AMI by household size: 1=$66,850; 2=$76,400; 3=$85,950; 4=$95,500; 5=$103,150; 6=$110,800; 7=$118,450; 8=$126,100.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Chester County First Time Homebuyer Program caps the purchase price as follows: Maximum sales price determined by HUD's HOME Program.

• Eligible property types include Single-family detached, Semi-detached, Attached/townhouse, and Condominium.
• New construction is eligible.

Where does it apply?

Chester County First Time Homebuyer Program is a federal program, so it is not limited to Pennsylvania.

• The program targets specific areas: $40,000 county-wide max anywhere in Chester County; HPCC historically noted enhanced assistance for City of Coatesville purchases.

How do you apply?

Applications for Chester County First Time Homebuyer Program go through Chester County Department of Community Development (operated by the Housing Partnership of Chester County), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Housing Partnership of Chester County (required homebuying seminar/group counseling up to 8 hrs + one-on-one and a credit/budgeting session with a HUD-certified counselor).

2. 2

   Contact Chester County Department of Community Development (operated by the Housing Partnership of Chester County) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.