Butler County First-Time Homebuyer Down Payment & Closing Cost 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.

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
• Have a household income at or below the area median income limit for your family size
• Have completed homebuyer counseling 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

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.

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

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

How the Program Helps You

Down payment and closing cost assistance 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.

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. Contact the Housing Authority for specific limits for 2025.

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 help, coupled with comprehensive counseling and education, gives you the tools and resources to succeed as a new homeowner.