Chester County First-Time Home Buyer Program
Your Path to Homeownership

Making homeownership attainable for low-to-moderate income families in Chester County. The Housing Partnership of Chester County (HPCC) offers zero-interest loans up to $40,000 to help qualified first-time homebuyers cover down payment and closing costs. Since 1988, this HUD-backed program has helped over 600 families achieve the dream of homeownership.

Program Overview

The Housing Partnership of Chester County's First-Time Home Buyer Program is designed to assist low- to moderate-income individuals and families interested in purchasing their first home in Chester County. The program goes beyond financial assistance—it includes comprehensive pre-purchase homeownership counseling to help you prepare for the long-term responsibilities and rewards of homeownership.

The program provides two essential components:

Financial assistance: Zero-interest loans for down payment and closing costs
Counseling: Free homebuyer education classes and one-on-one counseling with HUD-certified housing counselors

Loan Terms & Assistance Amounts

Loan Structure

Amount: Up to $40,000 for Chester County purchases
Interest Rate: 0% (zero percent)
Term: Repayable upon sale, transfer, or refinance of property
Lien: Second mortgage recorded against the property

Eligible Expenses

Title insurance and title examination fees
Closing document preparation
Escrows for taxes and insurance
Appraisal, inspection, and credit report fees
Transfer taxes and recording fees
Down payment assistance

Eligibility Requirements

To qualify for the Chester County First Time Home Buyer Program, you must meet specific criteria:

Homebuyer Requirements

Be at least 18 years old
Have not owned a home in the last 3 years (or be a displaced homemaker)
Be able to secure a 30-year, fixed-rate mortgage from a local lender
Intend to occupy the property as your primary residence
Complete the required homebuyer counseling before purchase

Financial Requirements

Household income at or below 80% of the median income (see limits below)
Contribute a minimum of $1,000 of your own money toward the purchase
Maintain two months of reserves at the time of settlement
Not to exceed $15,000 in liquid assets after closing

2026 Income Limits

Your household gross annual income must not exceed the limits below (based on 80% of the median income for the area):

Household Size	Maximum Annual Income
1 person	$66,850
2 persons	$76,400
3 persons	$85,950
4 persons	$95,500
5 persons	$103,150
6 persons	$110,800
7 persons	$118,450
8 persons	$126,100

Property Requirements

The home you purchase must meet the following criteria:

Be located in Chester County, Pennsylvania
Be an existing or newly constructed single-family residence
Be detached, semi-detached, attached, or a condominium
Be owner-occupied as your primary residence
Meet HUD housing quality standards
Comply with lead-based paint standards (pre-1978 homes must be inspected)
Be below the HUD HOME program maximum sales price for the area
Be fully insurable

					Note on Property Age: Homes built before 
					1978 must comply with federal lead-based paint regulations. 
					This may affect eligibility or require additional testing 
					and disclosure.

The Application Process

Step 1: Attend a Homebuying Seminar

Attendance at a free monthly homebuying seminar is required before you can apply. These group classes provide up to eight hours of instruction on homeownership fundamentals. The seminars are free and cover topics essential to successful homeownership.

Step 2: Submit Your Application

Complete the First-Time Home Buyer application and gather the required documentation. A $40 non-refundable application fee (via money order only) is required. Checks will not be accepted.

Mail your completed application package to:

Housing Partnership of Chester County
41 W. Lancaster Avenue
Downingtown, PA 19335

You may also deposit your application in the lockboxes at the front and back doors of the building. Applications are not accepted by fax or email.

Step 3: One-on-One Counseling

Once your application is reviewed, you'll be contacted by a HUD-Certified Housing Counselor to schedule an individual appointment. You'll also attend a one-on-one credit and budgeting session before proceeding with a home purchase.

Step 4: Home Shopping

After completing counseling, you can begin looking for a home. Important: Do not sign an agreement of sale until all required counseling sessions are completed.

Step 5: Underwriting & Settlement

HPCC will evaluate your application based on your income, credit history, available assets, property condition, and sales price. All counseling documentation must be completed before your settlement date.

Required Application Documents

To process your application, you must provide photocopies (originals not required) of:

Signed application form
Three (3) months of current bank statements for ALL accounts (all pages)
Proof of all 401(k)s, IRAs, CDs, Money Market accounts, etc.
Two (2) most recent signed federal tax returns
Two (2) years of W-2s for all jobs held
One (1) month of recent pay stubs for all jobs held
Copy of Social Security card for all applicants
Copy of government-issued photo ID for all applicants
Copy of Permanent Resident Card (if applicable)
List of all monthly debts with balances, interest rates, and minimum payments
Divorce decree and/or property settlement (if applicable)
Court order and 12-month printout (if receiving child support/alimony)
Award letter (if receiving Social Security or VA benefits)
Bankruptcy discharge and list of accounts (if applicable)

Important Program Details

Homebuyer Cash Contribution

You must provide at least $1,000 of your own money toward the home purchase. The maximum down payment allowed is 20% (minimum 80% loan-to-value ratio). You must also maintain two months of living expenses reserves by the settlement date.

Application Fee

A non-refundable $40 application fee per person (or $40 per married couple) is required. Payment must be by money order, made payable to the Housing Partnership of Chester County. Personal checks will not be accepted.

Debt-to-Income Ratios

Your lender will evaluate your debt-to-income ratio. HPCC reserves the right to deny assistance based on income, credit history, sales price, available assets, or property condition.

Post-Purchase Counseling

All first-time homebuyers have the right to return to HPCC at no charge for additional counseling after purchase. This ongoing support helps ensure long-term homeownership success.

Repayment Terms

The loan must be repaid to HPCC when the property is sold, transferred, or refinanced. To satisfy the second mortgage, submit a written request for the payoff amount. You'll be responsible for the satisfaction fee charged by the Chester County Recorder of Deeds Office (typically $36).

Privacy & Confidentiality: HPCC maintains strict confidentiality of all client information. Office access is by appointment only to protect client privacy. All applications must be submitted by mail or through lock boxes; the office staff will not make photocopies for you.

About the Housing Partnership of Chester County

The Housing Partnership of Chester County (HPCC) is a 501(c)(3) non-profit organization established in 1988. Founded in response to a housing shortage for moderate-income residents, HPCC has spent over three decades providing tools, resources, and education to help build strong, stable communities in Chester County.

Program Impact Since 1988:

✓ Coordinated 600+ settlements for first-time homebuyers, representing $3.9+ million in financial assistance

✓ Completed $7.1+ million in home repairs for Chester County homeowners

✓ Provided counseling and financial literacy education to thousands of residents

Beyond the First Time Home Buyer Program, HPCC offers several complementary services:

Credit and Budgeting Counseling: Free financial literacy programs for all ages
Home Modification Program: Accessibility improvements for residents with disabilities
Senior Home Maintenance: Basic repairs for residents 65 and older
Housing Rehabilitation: Assistance for low-to-moderate income homeowners making necessary repairs
Fuel Assistance: Emergency heating bill assistance

Contact Information & Next Steps

Housing Partnership of Chester County

Address: 41 W. Lancaster Avenue, Downingtown, PA 19335

📞 610-518-1522

Hours: Monday – Friday, 9:00 AM – 5:00 PM

Note: Office access is by appointment only. All applications must be mailed or deposited in lock boxes at the front and back doors.

Get Started Today

Homeownership in Chester County is achievable with the right support and resources. The Housing Partnership of Chester County has helped hundreds of families realize their dream of owning a home. If you're a low-to-moderate income individual or family interested in purchasing your first home, take these steps:

Call HPCC at 610-518-1522 to learn more about the program
Attend a free homebuying seminar (required for all applicants)
Complete your application with all required documentation
Meet with a housing counselor for personalized guidance
Find your home and begin your journey to homeownership

With competitive assistance up to $40,000, comprehensive counseling, and a proven track record of success, the Housing Partnership of Chester County is committed to helping you achieve the stability and pride that comes with homeownership.

Disclaimer: This article is for informational purposes only. Program details, income limits, and loan amounts are subject to change. For the most current and complete information, contact the Housing Partnership of Chester County directly at 610-518-1522 or visit their website at housingpartnershipcc.com. The program is funded through HUD's HOME Investment Partnership Program and administered by the Chester County Department of Community Development.

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Chester County First-Time Home Buyer Program Your Path to Homeownership