Allegheny County's First Time Home Buyer Loan

Written by Anytime EstimateFebruary 11th, 20223 minute read

Allegheny County's First Time Home Buyer Loan

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:

Clairton: 4923
Duquesne: 4869
Homestead: 4838
Rankin: 5140
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.

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