First Time Home Buyer Program

What is First Time Home Buyer Program?

First Time Home Buyer Program is a forgivable loan for homebuyers in Chester County, Pennsylvania.

• Chester County HOME-funded FTHB DPA via HPCC. Up to $10,000 0% forgivable soft second forgiven at 5 years. Chester County PA, FTHB, 80% AMI, max purchase price $496,850, 640 FICO, mandatory HPCC counseling.
• Housing Partnership of Chester County (HPCC) First Time Home Buyer Program provides HUD HOME-funded down payment and closing cost assistance up to $10,000 to qualifying first-time homebuyers purchasing in Chester County PA (NOT the city of Chester, which is in Delaware County). HPCC is the statutory housing-counseling agency for Chester County. Maximum purchase price $496,850 (HUD HOME 95% area median sales price for Chester County, which has very high median home prices). The DPA is a 0% interest deferred forgivable second mortgage forgiven at 5 years per HUD HOME rules. Pairs with FHA, VA, USDA, or Conventional first mortgage. 640 minimum FICO. Income range $66,850-$126,100 (Chester County 80% AMI 1p-8p, Philadelphia-Camden-Wilmington MSA).
• Funding comes from Federal and HOME.

Do you have to pay it back?

First Time Home Buyer Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 5-year HUD HOME affordability period. If property is sold/refi/transferred or borrower vacates within 5 years, unforgiven balance due in full. Forgiven at 5 years of continuous owner-occupancy.
• The assistance is recorded in 2nd 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?

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

What are the income limits?

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

• Income range $66,850-$126,100 reflects Chester County / Philadelphia-Camden-Wilmington MSA 80% AMI for household sizes 1-8.
• 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?

First Time Home Buyer Program caps the purchase price at $496,850.

• Eligible property types include 1- to 2-unit owner-occupied primary residence (single-family detached, duplex, condominium, townhouse).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

First Time Home Buyer Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

First Time Home Buyer Program serves buyers purchasing in Chester County, Pennsylvania.

How do you apply?

Applications for First Time Home Buyer Program go through the administering agency, 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 (HUD-approved housing counseling agency) - HPCC's pre-purchase counseling and homebuyer education classes are required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply through HPCC pre-purchase counseling. Funds reserved on first-come, first-served basis subject to Chester County HOME allocation., 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.