Last updated: October 2026

Butler County First-Time Homebuyer Assistance Program

What Is the Program?

The Butler County First-Time Homebuyer Down Payment & Closing Cost Assistance Program is a matching grant that helps eligible homebuyers cover the out-of-pocket costs needed to close on a home purchase. The program is sponsored by the Pennsylvania Housing Finance Agency and administered by the Butler County Housing Authority Resident Initiatives Department. It is one of the most valuable local housing initiatives and mortgage assistance programs available to first-time buyers in the region.

According to the Butler County Housing Authority, the program is currently serving participants and is designed to help low- to moderate-income individuals and families achieve the dream of homeownership [citation:2]. The program operates as a dollar-for-dollar match, meaning the more you save, the more assistance you receive.

How Much Assistance Can You Get?

The program offers financial help based on what you can contribute yourself. Here's how it works:

• The Housing Authority will match your personal contribution dollar-for-dollar
• Total assistance is limited to $5,000 or 50% of your closing costs, whichever is lower
• You must contribute at least 1% of the total amount from your own resources
• The remainder of your required contribution can come from gift funds

Who Is Eligible?

To qualify for the Butler County first-time homebuyer program, you generally must meet these requirements:

• Be a first-time homebuyer or meet the program's definition of first-time buyer (not have owned a home within the last 3 years)
• Have a household income at or below 80% of the HUD Area Median Income for your family size
• Have completed homeownership education through an approved provider
• Be able to secure financing through a conventional loan or FHA loan
• Have a minimum credit score as required by your lender
• Contribute at least 1% of the closing costs from your own funds
• Purchase a home located in Butler County that will serve as your primary residence

Eligibility for first-time homebuyers also depends on completing a pre-purchase counseling session. This step ensures you are prepared for the responsibilities of homeownership and helps you understand budgeting for home purchase.

2026 Income Limits for Butler County

To qualify for the program, your total household annual income must not exceed 80% of the HUD Area Median Income. For 2026, the total household annual income limit is $85,850 [citation:14]. The table below shows the income limits by household size for Butler County, Pennsylvania, effective May 2026 [citation:30].

Household Size	Low Income (80% AMI)
1 Person	$47,500
2 Persons	$54,300
3 Persons	$61,100
4 Persons	$67,850
5 Persons	$73,300
6 Persons	$78,750
7 Persons	$84,150
8 Persons	$89,600

These limits are based on HUD's annual income calculations and may be updated periodically. Contact the Housing Authority to confirm the limits for your specific household situation.

Types of Closing Costs the Program Covers

The matching funds can be used toward approved closing costs, which typically include:

• Loan origination and application fees
• Credit report and appraisal fees
• Title search, title insurance, and attorney fees
• Home inspection costs
• Homeowners insurance premiums
• Property taxes and homeowners association fees
• Recording fees and document preparation

What You Need to Know About Gifts and Contributions

Your 1% personal contribution must come directly from your own funds. The remainder of your required down payment or closing cost contribution can be a gift. All contributions and gifts must be available at the time of closing. Understanding property purchase assistance rules is critical to a smooth application process for aid.

According to the Housing Authority's program guidelines, the remainder of your contribution may be "granted, gifted, or donated" [citation:14]. This flexibility makes the program accessible even if you have limited personal savings, as long as you can secure a small personal contribution and have access to gift funds from family or other approved sources.

The Application Process

Getting started with the program involves these steps:

• Contact the Butler County Housing Authority to request an application
• Complete the housing counseling application and schedule an appointment
• Attend pre-purchase homebuyer counseling and education
• Submit your formal application for down payment and closing cost assistance
• Secure a mortgage commitment from an approved lender
• Once approved, the funds are made available at closing

For a broader look at available mortgage assistance programs and to estimate your monthly payments, visit our mortgage calculators page. You can also explore questions and answers for more details on the application process.

Documentation You Will Need

When you apply, be prepared to provide the following documentation [citation:14]:

• Bank statements (last 2 months for all checking and savings accounts)
• Tax returns (most recent federal and state, all schedules)
• Proof of income (30 days of pay stubs, or quarterly/year-to-date profit/loss statements if self-employed)
• Documentation of other income sources (child support, Social Security, pensions, etc.)
• Copy of photo ID
• Signed sales agreement
• Loan Estimate and Closing Disclosure

Benefits Beyond Financial Assistance

The Butler County Homeownership Program offers more than just matching funds. You also receive:

• Free homebuyer education classes
• Pre-purchase counseling to ensure you're ready for homeownership
• Post-purchase counseling and support after you close
• Fair housing education
• Credit and budget counseling to strengthen your financial foundation

These homebuyer support services and community resources for buyers are designed to set you up for long-term success as a homeowner.

How the Program Helps You

Down payment and closing cost aid addresses one of the biggest barriers to homeownership. By matching your savings, the program rewards your effort to build financial stability while reducing the cash you need at closing. This means you can buy your home sooner and keep more of your savings intact for unexpected expenses or home repairs after purchase. Combined with low-interest loans for first-time buyers and government grants for homes, this program is a cornerstone of real estate resources in Butler County.

According to the Housing Authority, the program also includes a 5-year lien on the home in the amount of assistance provided. Twenty percent of the total amount is deducted each year, meaning the lien is fully forgiven after five years [citation:14]. This structure ensures that the assistance remains a true grant for homebuyers who stay in their homes long-term.

Frequently Asked Questions

Can I use this program if I have bad credit?

The program has no minimum credit score requirement, but you must be able to secure mortgage financing through an approved lender. Most lenders require a credit score of at least 620. Pre-purchase counseling can help you work on credit issues before applying for a mortgage.

What if I'm not a first-time homebuyer?

The program is designed for first-time homebuyers, but the Housing Authority may have alternative programs available. Contact the Resident Initiatives Department to discuss your situation.

How long does the approval process take?

The timeline depends on how quickly you complete your counseling requirements and submit a complete application. Plan to allow several weeks from initial contact to approval, especially if you need to schedule counseling sessions.

Does the matching assistance affect my mortgage approval?

No. The matching funds are a grant and are not counted as new debt. They help you meet your closing cost obligations without borrowing additional money.

Are there any income limits?

Yes. Income limits are based on the area median income for your household size. For 2026, the total household annual income limit is $85,850. The specific limit varies by household size, as shown in the table above.

What if I don't have any savings?

You must contribute at least 1% from your own funds, but the remainder can be a gift from family or other approved sources. The Housing Authority can discuss gift fund rules with you during your counseling.

Why Choose the Butler County Program?

This program removes a major obstacle to homeownership by providing real, matching financial assistance. Unlike other programs that offer fixed dollar amounts regardless of your effort, this one rewards your savings. The program's combination of down payment and closing cost aid, coupled with comprehensive counseling and homeownership education, gives you the tools and resources to succeed as a new homeowner. It is a standout among local housing initiatives and a vital part of the affordable housing options in Butler County.