Buyer Resources

First-Time Buyer Programs for Relocators

PA-specific programs, FHA, VA, USDA, and down payment assistance available to relocators buying in the Lehigh Valley.

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Pennsylvania First-Time Buyer Programs

Pennsylvania offers some of the most generous first-time buyer assistance programs in the country. Through the Pennsylvania Housing Finance Agency (PHFA), relocators from any state can access below-market interest rates, down payment assistance, and reduced mortgage insurance — making homeownership more affordable from day one.

PHFA Keystone Home Loan

Below-market rates + assistance

Below-market interest rates and down payment/closing cost assistance for first-time buyers in Pennsylvania. Available through the Pennsylvania Housing Finance Agency.

Eligibility: First-time buyers or those who haven't owned a home in 3+ years. Income and purchase price limits apply.

PHFA Keystone Advantage Assistance

Up to 4% of purchase price

A loan of up to 4% of the purchase price to be used toward down payment and closing costs. Repaid when the home is sold, refinanced, or the mortgage is paid off.

Eligibility: First-time buyers using a PHFA mortgage. Income limits apply.

PHFA HFA Preferred (First time buyers)

Reduced mortgage insurance

Fannie Mae backed mortgage with reduced mortgage insurance costs and competitive rates. PMI is lower than standard FHA or conventional loans.

Eligibility: First-time buyers, income limits apply.

FHA Loans

3.5% down payment

Federal Housing Administration loans allow down payments as low as 3.5% with a credit score of 580+. Popular with first-time buyers who have limited savings.

Eligibility: Credit score 580+ for 3.5% down. 500–579 requires 10% down.

VA Loans

0% down payment

Available to eligible veterans, active-duty military, and surviving spouses. No down payment required, no private mortgage insurance, and competitive interest rates.

Eligibility: Veterans, active-duty, National Guard, Reserves with qualifying service. Certificate of Eligibility required.

USDA Loans

0% down payment

For homes in eligible rural and suburban areas. The Lehigh Valley has USDA-eligible areas, particularly in Northampton County. Zero down payment financing.

Eligibility: Income limits apply. Property must be in a USDA-eligible area. Many Lehigh Valley areas qualify.

Down Payment & Closing Cost Assistance Programs

Grants / forgivable loans

Various county and local programs in Lehigh and Northampton Counties offer grants or forgivable loans for down payments and closing costs. Availability varies by year and funding.

Eligibility: Income limits, homebuyer education, and first-time buyer status typically required. Tim Tepes can identify current programs.

USDA Loan Eligibility in the Lehigh Valley

USDA Rural Development loans offer zero down payment financing for homes in eligible rural and suburban areas. Many communities in the Lehigh Valley qualify, particularly in Northampton County and parts of Lehigh County.

To qualify, buyers must have household incomes at or below 115% of the area median income, and the property must be in a USDA-eligible area. This is an excellent option for relocators who want to buy with minimal upfront costs.

Tim Tepes can help you identify which properties and communities currently qualify for USDA financing, as eligibility boundaries can change.

Related Resources

First-Time Home Buyer Guide

Step-by-step buying process for the Lehigh Valley.

PA Tax Guide

Understand PA's tax structure before you buy.

Cost of Living Calculator

Compare costs between the Lehigh Valley and your state.

School District Guide

Find the right school district for your family.

First-Time Buyer FAQ

Can out-of-state buyers use PA first-time buyer programs?

Yes. PA first-time buyer programs like PHFA Keystone Home are available to anyone purchasing a primary residence in Pennsylvania, regardless of where they currently live. You do not need to be a current PA resident to qualify.

What credit score do I need for an FHA loan?

FHA loans require a minimum credit score of 580 for the 3.5% down payment option. Scores between 500–579 require a 10% down payment. Some lenders have additional overlay requirements above FHA minimums.

Are there USDA-eligible areas in the Lehigh Valley?

Yes. Several areas in Northampton County and parts of Lehigh County qualify for USDA rural development loans. These zero-down-payment loans are available to buyers with household incomes at or below 115% of the area median income. Tim Tepes can help identify eligible properties.

How much can I save with PHFA programs?

PHFA Keystone Advantage Assistance provides up to 4% of the purchase price toward down payment and closing costs. On a $350,000 home, that's up to $14,000 in assistance. Combined with below-market interest rates, the total savings can be significant for qualifying buyers.

Do I need to complete homebuyer education?

Many PA programs require completion of a homebuyer education course. PHFA-approved courses are available online and in-person. The course typically takes 4–8 hours and covers budgeting, credit, the mortgage process, home maintenance, and more.