First-Time Home Buyer Guide for Pennsylvania (2026)

In short: To buy your first home in Pennsylvania, you will usually need a mortgage pre-approval, a written buyer agreement with your agent before touring homes, a down payment (as little as 0 to 3.5% with some loan programs) and money for closing costs. From accepted offer to settlement typically takes 30 to 60 days. Pennsylvania Housing Finance Agency (PHFA) programs can help with the down payment and closing costs if you qualify, and in Monroe County the county's First-Time Homebuyer Program can add up to $25,000 as a 0% loan forgiven over 10 years.

Step by step

1. Know your budget. Look at your savings, monthly debts and credit. A lender can tell you what you qualify for, but decide what monthly payment you are comfortable with.
2. Get pre-approved. A pre-approval letter shows sellers you can buy, and it is expected with most offers.
3. Sign a buyer agreement. Since August 2024, buyers sign a written agreement with their agent before touring homes. It states what your agent does for you and how, and how much, they are paid. That compensation is negotiable.
4. Find the home. Ryth sets up searches, tours homes with you and tells you what he sees in each one: condition, price and neighborhood.
5. Make an offer. The offer includes the price, a good-faith deposit, the settlement date and contingencies that protect you, such as inspection, financing and appraisal.
6. Inspect. A home inspection, plus radon testing, a wood-destroying insect inspection, and well and septic inspections where the home has them.
7. Appraisal and loan approval. The lender orders an appraisal and finalizes your loan.
8. Settlement. In Pennsylvania, settlement is usually handled by a title company. You sign, pay your closing costs and get the keys.

Loan options with low down payments

• FHA loans: as little as 3.5% down.
• Conventional loans: as little as 3% down for many first-time buyers.
• VA loans: 0% down for eligible veterans and service members.
• USDA loans: 0% down in eligible rural areas. Parts of Monroe County may qualify, depending on the address.

Monroe County: up to $25,000 toward your down payment and closing costs

If you are buying your first home in Monroe County, the county's First-Time Homebuyer Program can lend you up to $20,000, or 20% of the price if that is less, at 0% interest for the down payment and closing costs. Buyers who have lived in the county for the past 12 months can get $5,000 more. The loan is forgiven 10% a year, so after 10 years in the home you owe nothing.

To qualify, you must:

• Be a first-time homebuyer.
• Have a total household income at or below 100% of Monroe County's median income ($99,188 for a household of four, as of October 2026).
• Use the home as your primary residence.
• Be a U.S. citizen or permanent resident.
• Have good credit and the ability to make the mortgage payments.
• Complete a homeownership pre-purchase counseling workshop and get the certificate.
• Put in at least 3% of the price from your own money, and buy an existing home (new construction does not qualify).

The program is run by the Redevelopment Authority of the County of Monroe. See the full Monroe County First-Time Homebuyer Program guide for the income limits, how the loan is forgiven and how to apply, or ask Ryth.

Help from PHFA

The Pennsylvania Housing Finance Agency offers first-time buyer programs through approved lenders, including the Keystone Home Loan and the Keystone Advantage Assistance Loan, which helps with the down payment and closing costs. Income and purchase-price limits apply, and the amounts change, so check the current terms with a PHFA-approved lender. Ryth can connect you with one.

Costs to plan for

• The down payment
• Closing costs, often around 2 to 5% of the price, including your share of the transfer tax. See Closing costs in Pennsylvania.
• Prepaid property taxes and homeowners insurance
• Inspections, usually paid before settlement
• Moving costs and a cushion for the first repairs

Pennsylvania specifics to know

• The Consumer Notice. At your first real conversation, your agent gives you a state notice explaining the kinds of relationships you can have with an agent.
• The Seller's Property Disclosure Statement. For most homes, the seller must tell you in writing about known problems.
• Three property tax bills. Pennsylvania property taxes go to the county, the township or borough, and the school district.
• POA and HOA communities. In the Poconos especially, many homes belong to a community with dues and rules, and the seller provides a resale certificate.

Buying in Spanish

Ryth works in English and Spanish, so you can go through every step, from the pre-approval to settlement day, in Spanish. Pennsylvania contracts are written in English; Ryth explains each document in Spanish before you sign, and family members are always welcome.

Sources

• Pennsylvania Housing Finance Agency (PHFA): home purchase loans
• PHFA: Keystone Advantage Assistance Loan
• Redevelopment Authority of the County of Monroe: First-Time Homebuyer Program
• National Association of REALTORS®: consumer guide to written buyer agreements
• Pennsylvania State Real Estate Commission: Consumer Notice (PDF)
• Pennsylvania's Real Estate Seller Disclosure Law (68 Pa.C.S. Chapter 73)
• USDA: property eligibility map for USDA loans

What clients say

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