Lancaster County First Time Homebuyer Programs and Assistance

Buying your first home in Lancaster County takes planning and money. The good news is that multiple assistance programs exist to help you cover down payment and closing costs. Lancaster County offers several local programs plus access to statewide and federal options to make homeownership achievable.

Lancaster County is a vibrant region in south-central Pennsylvania with a median home price around $250,000. Local programs through Tenfold and the Lancaster County First Time Homebuyer Loan provide substantial assistance. Combined with state and federal programs, Lancaster County buyers have multiple pathways to homeownership.

Tenfold Down Payment Assistance Program

Tenfold administers the Lancaster County down payment assistance program formerly known as the Lancaster Housing Opportunity Partnership. The program provides substantial financial assistance to eligible first-time homebuyers purchasing homes in Lancaster County.

The Tenfold Down Payment Assistance Program offers up to $7,000 as a zero-percent interest deferred loan. This assistance can be used toward down payment and closing costs. Properties must be located within Lancaster County and serve as your primary residence.

An additional $10,000 in assistance is available for homes located in the Southwest Lancaster area through the SoWe program. If you are purchasing in the Southwest Lancaster neighborhood, you may qualify for up to $10,000 in assistance.

The loan is deferred with no monthly payments required. You repay the loan when you sell or refinance the property. The zero percent interest rate means you pay back exactly what you borrowed with no added interest charges.

To qualify for Tenfold assistance, you must be a first-time homebuyer. Tenfold defines this as someone who has not owned a home in the past three years. You must have a permanent address in Lancaster County. Income limits apply and vary based on household size.

You must complete Tenfold's Pre-Purchase Homeownership Education Class before receiving assistance. This class helps you understand the homebuying process, evaluate your credit, develop a budget, and determine how much home you can afford. The course also satisfies requirements for most state and federal programs.

Contact Tenfold at 717-397-5182 to register for a homebuyer course and discuss your eligibility. Tenfold's Homeownership Specialist will guide you through the application process and explain all available assistance options.

Lancaster County First Time Homebuyer Loan

The Lancaster County First Time Homebuyer Loan provides additional assistance beyond the Tenfold program. This county program offers 8 percent of the home's sales price, up to $5,000, in down payment and closing cost assistance.

This assistance is available in addition to Tenfold assistance, allowing you to layer programs and receive maximum support. Combined with Tenfold's $7,000, you could potentially receive up to $12,000 in assistance.

To apply for the Lancaster County First Time Homebuyer Loan, contact NeighborWorks at 570-558-2490. NeighborWorks serves as the HUD-approved housing counselor for Lancaster County and coordinates access to this additional assistance.

Income limits and other eligibility requirements apply. NeighborWorks will review your situation and help you understand which programs you qualify for and how to apply.

Lancaster Lebanon Habitat for Humanity Homeownership Program

Lancaster Lebanon Habitat for Humanity offers an alternative path to homeownership for income-eligible first-time homebuyers. The program provides a zero-percent interest mortgage through a process that includes sweat equity and community involvement.

Habitat builds or renovates homes in Lancaster and Lebanon counties with partner families serving as volunteer labor. Applicants must invest up to 400 hours of sweat equity building Habitat homes and helping construct homes for other families.

Habitat mortgages are tailored to fit your budget based on your sustainable income. Mortgage payments are affordable because they reflect the program's cost structure, not market rates. You must be able to make a 1 percent down payment and cover applicable closing costs.

To qualify, you must be a first-time homebuyer or someone who has not owned a home in the past three years due to divorce or separation. Your income must fall within Habitat's guidelines, which are based on area median income. You must have sustainable income and a consistent payment history with rent.

You must live or work in Lancaster or Lebanon County and be a U.S. citizen or permanent resident. Habitat also looks for families experiencing overcrowded or substandard living conditions, or those paying more than 30 percent of gross income for housing.

The application process includes working with Habitat staff to establish your homeownership goals and complete required educational classes. Participate with Habitat throughout the entire process from application through closing and beyond.

Contact Lancaster Lebanon Habitat for Humanity to learn about current home availability and the application process. Habitat serves both Lancaster and Lebanon counties with similar programs in each location.

Southwest Lancaster Down Payment Assistance

Homebuyers purchasing in the Southwest Lancaster neighborhood have access to additional assistance through the SoWe program. Tenfold offers an extra $10,000 in down payment assistance for properties located in this revitalization area.

The Southwest Lancaster area is targeted for housing and community development, creating increased opportunities for first-time homebuyers. This additional assistance reflects the commitment to expanding homeownership in the neighborhood.

Combined with the standard Tenfold program, buyers in Southwest Lancaster could potentially receive up to $17,000 in assistance through Tenfold alone. Adding the Lancaster County First Time Homebuyer Loan could bring total assistance to over $22,000.

SoWe also offers an Affordable Home Repair Program for existing homeowners. Grants and low-interest loans are available for critical repairs, weatherization, and interior and exterior work. Contact Tenfold at 717-397-5182 for information about this program.

Pennsylvania Housing Finance Agency Statewide Programs

Lancaster County homebuyers have access to multiple Pennsylvania Housing Finance Agency programs. PHFA offers several mortgage and assistance options designed to help first-time homebuyers achieve homeownership with affordable payments and flexible terms.

The Keystone Forgivable in Ten Years program, known as K-FIT, provides up to 5 percent of the purchase price in down payment and closing cost assistance with no maximum dollar limit. The K-FIT loan is forgiven at 10 percent per year over 10 years, meaning you owe less each year as you build equity.

The Keystone Advantage Assistance Loan provides up to $6,000 in structured assistance toward down payment and closing costs. This program offers a reliable amount of assistance with clear terms that are easy to understand.

The Keystone Home Loan program serves first-time homebuyers with income and purchase price limits specific to Lancaster County. This program offers competitive interest rates and low fees with 30-year fixed-rate mortgages available through conventional, FHA, VA, or USDA loans.

The HOMEstead program provides up to $10,000 in no-interest assistance. The program may be available in Lancaster County. Contact PHFA to confirm current eligibility and availability.

Federal Mortgage Programs Available

FHA loans allow first-time homebuyers to purchase with as little as 3.5 percent down payment. FHA mortgages have flexible credit requirements and accept borrowers with past credit challenges who demonstrate readiness for homeownership.

VA loans are available to eligible military members, veterans, and surviving spouses. VA loans offer zero down payment options and competitive interest rates as a benefit of military service. The VA guarantees the loan so lenders take less risk and offer better terms.

USDA loans are available in rural areas of Lancaster County for eligible borrowers. USDA loans offer zero down payment and reduced mortgage insurance for rural homebuyers. Income limits apply, but USDA loans serve borrowers in designated rural areas with favorable terms.

Conventional loans are available with 3 to 5 percent down payment for qualified borrowers. Conventional mortgages may offer the best rates and terms for borrowers with good credit and stable income.

How to Get Started with Lancaster County Assistance

The first step is to contact Tenfold at 717-397-5182 to register for a Pre-Purchase Homeownership Education Class. This course is required for Tenfold assistance and satisfies requirements for most state and federal programs.

Complete Tenfold's homebuyer education course. The course teaches you about the homebuying process, helps you evaluate your credit, develop a budget, and determine how much home you can afford. Ask Tenfold about course schedules and registration.

Contact Tenfold again after completing the course to apply for down payment assistance. Discuss your situation with Tenfold's Homeownership Specialist to understand how much assistance you may qualify for and discuss purchase price limits.

Contact NeighborWorks at 570-558-2490 to apply for the Lancaster County First Time Homebuyer Loan. NeighborWorks will review your application and coordinate this additional assistance with your Tenfold program.

Contact a PHFA-approved mortgage lender to explore statewide programs and federal loan options. Some lenders specialize in certain programs, so shopping around helps you find the best rates and terms.

Get prequalified for a mortgage before house hunting. Prequalification shows you how much you can borrow and helps you search in the right price range.

Income and Credit Requirements

Tenfold Down Payment Assistance Program income limits vary by household size. Income limits are determined based on area median income for Lancaster County. Contact Tenfold at 717-397-5182 to confirm your specific income limit.

Lancaster County First Time Homebuyer Loan income limits also vary by household size. Contact NeighborWorks at 570-558-2490 to confirm your specific income limit.

Lancaster Lebanon Habitat for Humanity has income guidelines based on area median income. The organization looks for families with sustainable income and good rental payment history. Contact Habitat directly to learn about their current income limits.

FHA loans typically require a minimum credit score of 580 for borrowers putting down 3.5 percent. Conventional loans require a minimum credit score of 620. VA loans have flexible credit requirements for veterans. USDA loans vary by lender but often require a 640 credit score.

The good news is that you do not need perfect credit to qualify for homeownership assistance in Lancaster County. Multiple programs work with homebuyers who have past credit challenges if they demonstrate willingness to repay debt and maintain good credit going forward.

Documents You Will Need

Gather your documents early to speed up the application process. You will need recent pay stubs, typically covering the last 30 days. You will need tax returns for the past two years to verify income stability.

Bank statements showing your savings and down payment funds are required. You must also provide identification such as a driver's license or passport. Employment history verification is required.

Authorization to check your credit report is required. This allows lenders and programs to review your credit history and score. Tenfold's homebuyer course will help prepare you and explain what documents you need.

Frequently Asked Questions

How much assistance can I receive in Lancaster County?

You can receive up to $7,000 through Tenfold as a zero-interest deferred loan. If you qualify for the Lancaster County First Time Homebuyer Loan, you can receive an additional 8 percent of the sales price, up to $5,000, bringing total assistance to $12,000. If purchasing in Southwest Lancaster, you may qualify for an additional $10,000 through SoWe, potentially totaling over $22,000 in local assistance alone.

Is the homebuyer education course required?

Yes, you must complete Tenfold's Pre-Purchase Homeownership Education Class to qualify for down payment assistance. This course is required by Tenfold and also satisfies requirements for most state and federal programs including PHFA programs. Contact Tenfold at 717-397-5182 to register for an upcoming course.

Can I combine Lancaster County assistance with PHFA programs?

Yes, you can combine local Lancaster County assistance with PHFA statewide programs to receive additional support. For example, you might receive $7,000 from Tenfold plus $5,000 from the Lancaster County loan, then apply for K-FIT from PHFA for additional down payment assistance. Contact Tenfold and your lender to confirm which programs can be combined.

What is Habitat for Humanity's sweat equity requirement?

Habitat for Humanity requires you to invest up to 400 hours of sweat equity building Habitat homes and helping construct homes for other families. This involvement helps reduce construction costs and builds community. You participate with Habitat throughout the entire process from application through closing and beyond.

What if I am a veteran?

If you served honorably in the U.S. military, you may qualify for VA loan benefits including zero down payment and competitive interest rates. VA loans are available through PHFA participating lenders. Contact a PHFA-approved lender to ask about VA loan eligibility and benefits available to you.

Get Started Today

Lancaster County offers real help for first-time homebuyers who are ready to own. The county's multiple programs combined with state and federal options make homeownership achievable. Lancaster County is a vibrant region with diverse housing opportunities and strong community support for homeownership.

Contact Tenfold at 717-397-5182 to register for a homebuyer education course. Call NeighborWorks at 570-558-2490 for information about the Lancaster County First Time Homebuyer Loan. Explore Lancaster Lebanon Habitat for Humanity if you are interested in the sweat equity program. Talk to mortgage lenders about FHA, VA, USDA, and conventional loan options available to you.

Your path to homeownership in Lancaster County starts today. Take the first step and reach out to the program or lender that best matches your situation.