Regrettably, the Allegheny County first-time home buyer program has been suspended due to a budget shortfall.
Both first-time and repeat home purchasers should familiarize themselves with the Pennsylvania Housing Finance Agency's (PHFA) home buyer programs, which include a down payment and/or closing cost assistance loan.
Eligibility: All residents of Allegheny County who satisfy income guidelines are eligible, with the exception of those who live in the City of Pittsburgh.
A minimum down payment of 3.5% is required for FHA loans.
Down payment and closing cost assistance of up to $5,000 is available to qualified borrowers earning up to 100% of the local median income.
For further information on the closing cost and down payment assistance programs, please read more below.
Allegheny County First-Time Home Buyer Program Requirements
- Occupancy: You must occupy the property purchased as a primary residence - no investors.
- Mortgage Limit: $248,900 (FHA base figure).
- Maximum Sales Price: Approximately $294,750. Existing homes and new construction qualify.
- Mortgage Program: FHA
- Minimum Down Payment: 3.5% (FHA)
- Repayment term: 30 years only
- Eligible Areas: All areas of Allegheny County except the City of Pittsburgh.
- Interest Rate: 3.60% (with 1.5 points) or 3.75% (with 0 points).
- Income Limit: $64,000 per household (1-2 people); $73,600 household (3 or more people).
Property types: Must be a single-family residence. Condominiums, townhouses and mobile homes permanently affixed to a borrower's individually owned lot are eligible. Houses that include rental space or commercial space are ineligible.
Home buyer counseling: Participants are required to obtain pre-purchase credit counseling (Homebuyer Education Counseling).
A Certificate of Completion must be submitted to the mortgage company to be made a part of the Borrower(s) loan file. An acceptable Certificate of Completion may be obtained by the Borrower(s) from a PHFA or HUD certified counseling agency.
Participants will also be required to meet with a counselor for a one on one counseling session to go over budget, credit, mortgage financing, and home ownership responsibilities. The counseling session will last a few hours.
Allegheny County closing cost and down payment assistance
Participants in the first-time homebuyer program may qualify for up to a maximum of $5,000 in closing cost and down payment assistance program.
There will be 2 levels of closing cost and down payment assistance available to eligible Borrower(s):
1. Applicants whose income is between 61% and 100% of the median income of Allegheny County (adjusted for family size) may be eligible to receive 50% of the required closing costs and down payment.
2. Applicants whose income is at or below 60% of the median income of Allegheny County (adjusted for family size) may be eligible to receive 75% of the required closing costs and down payment.
A second lien (in the form of a second mortgage) in the amount of the closing costs and down payment assistance will be placed on the property for a period of 5 years with no graduated forgiveness. The second mortgage is forgiven on the first day of the sixth year and upon receipt of a satisfaction fee from the Borrower(s).
To be eligible, borrowers must meet all program criteria, and household income must be at or below 100% of the area median income.
Allegheny targeted area homebuyers program
Prospective home buyers in the following census areas are not required to be first-time home buyers.
House to be purchased must be located within one of the following census tracts:
W. Homestead: 4824
McKees Rocks: 4644
McKeesport: 5509, 5519, 5521
All other requirements of the Allegheny county first-time home buyer program are applicable.
Pennsylvania Housing Finance Agency (PHFA)
The Pennsylvania Housing Finance Agency (PHFA) offers home loan financing to first-time and repeat home purchasers, providing down payment and/or closing cost assistance up to $6,000.