First-Time Home Buyer Programs in Pennsylvania
A plain-English guide to PHFA, FHA, VA, and USDA options for first-time buyers in Lancaster County and Berks County — what you qualify for, what you'll need down, and what happens next.
Loan Programs Pennsylvania First-Time Buyers Use
| Program | Typical down payment | Credit guideline | Best for |
|---|---|---|---|
| FHA | 3.5% | ~580+ | Buyers rebuilding credit |
| Conventional | 3–5% | ~620+ | Stronger credit, lower long-term cost |
| VA | 0% | Lender set | Veterans and active-duty service members |
| USDA | 0% | ~640+ | Rural Lancaster & Berks townships |
| PHFA Keystone / HOMEstead | 3–3.5% (assistance available) | ~660+ | PA buyers needing help with cash to close |
Guidelines are general and change over time. Eligibility depends on income limits, property location, and lender overlays — we confirm your exact options before you apply.
How Buying Your First Home Works
1. Review your credit
We pull a full picture, flag what's hurting your score, and tell you honestly whether to buy now or spend 60–90 days improving first.
2. Get pre-approved
Income, assets, and ID documents turn into a real budget and a pre-approval letter Lancaster and Berks sellers take seriously.
3. Compare loan programs
FHA, conventional, VA, USDA, and PHFA side by side — measured by true monthly cost, not just the headline rate.
4. Shop and make an offer
We coordinate with your Realtor so your offer is backed by financing that will actually clear underwriting.
5. Underwriting and notary
We keep documents moving and can notarize what you need in-house across Lancaster and Berks counties.
6. Close with confidence
You'll know your number before you sign — no surprise line items at the closing table.
Buying in a specific market? See our Lancaster mortgage page or Reading mortgage page.
Pennsylvania First-Time Buyer FAQs
Does Pennsylvania have first-time home buyer programs?+
Yes. PHFA (the Pennsylvania Housing Finance Agency) offers below-market-rate mortgages plus the Keystone Advantage and HOMEstead assistance programs for down payment and closing costs. Federal FHA, VA, and USDA loans are also widely used by first-time buyers in Lancaster and Berks counties.
What credit score do I need to buy a house in PA?+
FHA loans generally start around a 580 score with 3.5% down, conventional loans around 620, and PHFA programs typically require 660 or higher. If you're below those thresholds, credit restoration first usually saves far more than it costs.
How much down payment do first-time buyers need in Lancaster or Reading?+
As little as 0% with VA or USDA (eligible rural parts of Lancaster and Berks counties), 3% on conventional loans, or 3.5% on FHA. PHFA assistance can cover part of the down payment and closing costs for eligible buyers.
What are closing costs in Pennsylvania?+
Plan on roughly 2–5% of the purchase price, which includes PA transfer tax (commonly split between buyer and seller), title insurance, lender fees, appraisal, and prepaid taxes and insurance.
How long does it take to buy a first home in PA?+
Pre-approval usually takes 24–72 hours, and once your offer is accepted, most closings happen in 30–45 days. If credit work is needed first, expect a 3–6 month runway before shopping.
Ready to take the next step?
Talk to our team about your mortgage, credit, or real estate goals today.