Pennsylvania Home Buyer

First Time Home Buyer Loan Program for Berks County


Nice house in Berks CountyClosing cost assistance may be available to eligible low to moderate income families purchasing a home in Berks County, including the City of Reading, who are approved for an FHA mortgage. This assistance program is in conjunction with affordable home loan programs offered by certified FHA lenders.

Eligible properties - Single family, owner occupied homes located in the City of Reading, Boroughs of Berks County, and Berks County Townships.

Loan Description - Fixed rate mortgage loan product.

Maximum Loan Amount - $25,000 plus up to $3,000 for repair escrow.

Loan Term - 15, 20, 25 or 30 years (depending on the lender)

Interest Rate - The mortgage lender's interest rate at time of application 

Down payment - No down payment required ($0)


Closing Costs - Applicants are required to pay a minimum of $1,500 of their own savings toward closing costs. The balance of the closing costs may be gifted from a relative and/or seller contribution up to 6% of the purchase price. An additional loan amount of 10% may be offered by NHS once the minimum of borrower’s own funds requirement has been met.

When it is available, the Federal Home Loan Bank Home Equity Fund can be used by applicants who satisfy the FHLB eligibility requirements in conjunction with this program. Private Mortgage Insurance is not required

Counseling - Applicants are required to attend eight hours of pre-purchase home buyer counseling. The home buyer counseling course includes budget counseling and borrowers need to demonstrate the ability to save no less than $50.00 each month.

Income Qualifications - Applicant's household income may not be greater than 105% of HUD Median Income based on family size for City of Reading, and not greater than 80% of the HUD Median Income outside the city.

Property Inspection must be completed by NHS certified inspector. All health and safety repairs and must be corrected by the seller prior to settlement, or the borrower may borrow up to $3,000.00 to be held in escrow by NHS to make the repairs after settlement. A wood infestation inspection is also required.

FHA Closing Cost Assistance Loan Program For 1st Time Home Buyers

Neighborhood Housing Services of Greater Berks offers a settlement cost assistance loan to qualified low to moderate income families who are purchasing a home in Berks County, including the City of Reading. FHA mortgage approval is required. This assistance program works in conjunction with certified FHA lenders.

Maximum Loan Amount - Closing costs and prepaid expenses

Interest Rate - Below Market Maximum (1/4% incentive for 5 Years or less term & with auto debit payment)

Loan Term - 7 Years

Minimum Down Payment - 3.5% (Fha guidelines)

Debt to Income Ratios - 41%

Unpaid Collections - Not Permitted
Two Hour Budget & Settlement Counseling Required
* Fastrac Classes Encourage

Berks County Home Buyer and Credit counseling Programs







How much does it cost to buy a house in Pennsylvania?

Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.Closing cost calculator


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