What the program is
The Housing Partnership of Chester County runs the county’s first-time buyer program with the Chester County Department of Community Development, on HUD money. The maximum is $40,000. It carries no interest and no monthly payment, and it records as a second lien behind your first mortgage. You repay it when the home is sold, transferred or refinanced. The figures on this page are program rules. Eligibility and the amount are the Partnership’s to decide, and the first mortgage sitting in front of it is subject to lender approval.
The eligibility basics, from the Partnership’s own page as it read in August 2026: no ownership in the past three years, at least 18 years old, primary residence, property in Chester County. Detached, semi-detached, attached or condominium all qualify, existing or newly built. The house has to meet HUD housing quality standards and be insurable, which on a pre-1940 row in Coatesville or a farmhouse with an old flue is a real punch list.
The income table
Household income is capped at 80% of the area median, and the Partnership publishes the whole table.
| Household size | Income limit |
|---|---|
| 1 | $66,850 |
| 2 | $76,400 |
| 3 | $85,950 |
| 4 | $95,500 |
| 5 | $103,150 |
| 6 | $110,800 |
| 7 | $118,450 |
| 8 | $126,100 |
Those were the figures on the program page in August 2026. The table moves when HUD’s median income numbers move, so confirm yours when you apply.
There is a purchase price ceiling as well, tied to the HUD HOME program’s homeownership value limits. The Partnership prints no dollar figure for it and the limit changes, so treat it as a number to confirm at application, and do not plan a price range around a guess at it.
The two rules that catch people
The first is the ceiling on your down payment: it may not exceed 20% of the purchase price, which is the same thing as saying the first mortgage has to be at least 80% loan-to-value. A buyer sitting on a large family gift can be too well-funded for this program. It reads backwards until you remember the money is subsidy, aimed at the households that need it to close.
The second is the floor and cap on your own cash. You have to put in at least $1,000 of your own money and hold two months of reserves at settlement, and liquid assets after closing may not exceed $15,000. Work both against the first mortgage before you set a price range, because the loan the lender writes and the assistance the county writes have to agree with each other.
Counseling, and how you apply
Homebuying seminars are required, and the Partnership runs them monthly. The office is at 41 W. Lancaster Avenue in Downingtown, works by appointment, and takes applications by mail or through its lock boxes. The number is 610-518-1522.
Counseling pays for itself on the state side too. PHFA gives a $300 closing-cost credit when at least one borrower completes in-person pre-purchase counseling at an approved agency before signing the agreement of sale. PHFA also requires homebuyer education before closing, and borrowers below a 680 credit score have to do it face to face. Booking the session early turns a requirement into a credit.
Stacking PHFA behind the county money
The county’s $40,000 is a second lien, and a Pennsylvania Housing Finance Agency loan is usually the first mortgage sitting in front of it.
For reservations on or after July 1, 2026, PHFA’s Keystone Home Loan in Chester County caps the purchase price at $588,800 and income at $122,700 for a one- or two-person household, $141,100 for three or more. Keystone Flex, which carries no first-time buyer requirement, runs at $730,600 and $212,000 statewide. K-FIT adds 5% of the purchase price or appraised value with no dollar cap, forgiven at 10% a year over ten years. Keystone Advantage is the lesser of 4% or $6,000, with no interest, repaid over ten years. Both assistance programs set a minimum 660 credit score.
Chester County contains one designated targeted census tract, 3056. Inside it the first-time buyer requirement is waived and the same dollar limits apply. An address search decides whether a given property sits in it, and it takes a minute.
The order of operations
- Run household income against the table above.
- Call the Partnership and ask three things: whether funds are available, what the current purchase price limit is, and when the next seminar runs.
- Book the seminar and the counseling session before you sign an agreement of sale, so the $300 PHFA credit stays on the table.
- Get the first mortgage structured, since the 20% down payment ceiling has to work with it.
- Apply by mail or lock box.
- Watch the liquid asset number all the way to closing, and again on the day itself.
Household size and the price you are aiming at are enough to begin, and a licensed Pennsylvania lender calls you back, usually the same business day, to run the county program and the PHFA caps against your own numbers.