Thinking about buying your first home in Perkasie but not sure how to cover the down payment and closing costs? You are not alone. Many Bucks County renters are closer to homeownership than they realize once they understand the programs designed to help first-time buyers.
In this guide, you will learn how Pennsylvania’s PHFA programs work, which federal loans are most common for first-timers, what local Bucks County resources to check, and how to apply with confidence. You will also get a simple timeline and a document checklist, tailored for buyers in Perkasie. Let’s dive in.
What “first-time buyer” means
Most assistance programs use a simple definition: you are a first-time buyer if you have not owned a principal residence in the past three years. Some programs make exceptions for veterans, certain targeted areas, or specific household situations. It is important to confirm the definition that applies to the program you plan to use.
The core programs you can use
State help: PHFA loans and assistance
The Pennsylvania Housing Finance Agency (PHFA) is the main state resource for first-time buyers. PHFA works through approved lenders and offers:
- First-mortgage options for low and moderate-income buyers, available as conventional or government-backed loans through PHFA-approved lenders.
- Down payment and closing cost assistance, often as a forgivable second loan or a low or zero-interest second loan. Many assistance options must be paired with a PHFA first mortgage.
- Homebuyer education, which is commonly required before you can receive certain PHFA assistance.
- Income and purchase-price limits that vary by county and household size. Bucks County limits apply when you buy in Perkasie.
Why this matters in Perkasie: PHFA is often the most straightforward path to down payment assistance for Bucks County buyers. If you want DPA, start by speaking with a PHFA-approved lender.
Federal loans many first-timers use
- FHA loans: FHA can be a good fit if you have a limited down payment or moderate credit. Minimum down payment is typically 3.5 percent for buyers who meet FHA credit guidelines.
- VA loans: Eligible veterans, active-duty service members, and some surviving spouses can access a VA mortgage with no down payment and flexible underwriting.
- USDA Rural Development loans: USDA offers zero-down financing in eligible areas for income-eligible buyers. Some Bucks County locations qualify, while others do not. You will need to confirm property eligibility by address.
- Conventional 3 percent down: Fannie Mae HomeReady and Freddie Mac Home Possible allow low down payments for qualifying borrowers. These programs have income limits, mortgage insurance rules, and sometimes require homebuyer education.
Local Bucks County and Perkasie resources
Local programs can complement PHFA and federal loans. In Bucks County, potential options include:
- County or municipal down payment and closing cost assistance funded by HOME or CDBG allocations. These may be grants or forgivable loans.
- Mortgage Credit Certificates (MCCs) that provide a federal tax credit for eligible first-time buyers when available.
- Homeownership counseling and education through HUD-approved agencies and local nonprofits.
Funding for county and municipal programs can change each year. Before you write an offer, confirm current availability with Bucks County government housing or community development offices, the Redevelopment Authority, or Perkasie Borough contacts.
What it takes to qualify
Income and price limits
Many programs set household income caps tied to area median income and also cap the purchase price. These limits vary by county, household size, and program. Since these numbers change, review the current Bucks County limits with your lender.
Credit and underwriting
- FHA typically allows lower minimum credit scores than many conventional options.
- PHFA and conventional programs use lender-specific credit score and debt-to-income guidelines. Conventional low-down-payment routes often require stronger credit than FHA.
Property eligibility
Most programs are for your primary residence only. Single-family homes, townhomes, and many condos are eligible if they meet the program and condo approval rules. Manufactured homes can have additional restrictions.
Buyer contributions and education
Some programs require a minimum borrower contribution or specific documentation for gift funds. Homebuyer education is often required for DPA or forgivable assistance. Plan to complete your course early.
How DPA is repaid
Down payment assistance can take different forms:
- Forgivable second lien that is forgiven after you live in the home for a set number of years.
- Zero-interest deferred second loan with no payments until you sell, refinance, or transfer the property.
- Low-interest repayable second loan with monthly payments.
Always review how and when repayment could be triggered.
How to apply: a simple timeline
Self-check your readiness. Confirm your first-time buyer status, review your budget, and use a mortgage calculator to estimate payments for Perkasie price points.
Complete homebuyer education. If you plan to use PHFA or DPA, take the required class early. Some assistance cannot be approved without the certificate.
Contact a PHFA-approved lender. Ask if they offer PHFA first mortgages and down payment assistance, and whether they work with Bucks County or municipal DPA.
Get pre-approved. A written pre-approval clarifies your price range and program eligibility before you tour homes.
Shop within program limits. Focus on Perkasie and nearby Bucks County listings that fit the purchase-price caps and property rules.
Apply for DPA with your loan. Your lender will usually submit DPA paperwork during underwriting.
Close on your home. Purchases often close in 30 to 60 days. Allow extra time if county or state DPA needs additional approval steps.
Documents you will likely need
- Photo ID and Social Security numbers for all borrowers
- Recent pay stubs and two years of W-2s
- One to two years of federal tax returns
- Bank statements and verification of assets
- Rent history
- Homebuyer education certificate, if required
- Gift letter and donor documentation, if using gift funds
Timing tips for Bucks County buyers
- Do your education and lender conversations before making an offer.
- If you want county or municipal DPA, verify funding early since dollars can be limited or seasonal.
- Ask your lender how DPA affects your timeline so you can write realistic contract dates.
How assistance affects your payment
Down payment assistance reduces the cash you need to bring to closing. Whether it changes your monthly payment depends on the format:
- Forgivable or deferred second loans usually do not add a monthly payment, but you could repay when you sell or refinance.
- Low-interest second loans do add a payment and will affect your monthly budget.
- FHA and some conventional programs require mortgage insurance with lower down payments. Your lender can compare options so you can weigh a slightly higher payment against keeping more cash on hand.
Seller concessions can often be combined with DPA, up to program and lender limits. Ask your lender for the maximum allowed by your loan type.
Smart trade-offs to consider
- Lower down payment vs. mortgage insurance costs
- Forgivable assistance vs. restrictions on selling or refinancing within a certain period
- Zero-down options vs. monthly costs and long-term equity goals
- Using DPA now vs. waiting to save more while prices and rates may change
Local reality check: Perkasie market
Perkasie and nearby Bucks County suburbs include a mix of single-family homes, townhomes, and older properties at a range of prices. Your best strategy is to line up your pre-approval, confirm the current PHFA and program limits for Bucks County, and compare them to recent list and sale prices in your target neighborhoods. If you want a current market snapshot for Perkasie, ask for recent comps, inventory trends, and typical days on market so you can plan your timing.
Your next steps in Perkasie
- Complete a HUD-approved homebuyer education course if you plan to use PHFA or DPA.
- Run numbers with a mortgage calculator, including taxes, insurance, and mortgage insurance where applicable.
- Speak with a PHFA-approved lender about PHFA first mortgages, DPA, and how federal options like FHA, VA, USDA, HomeReady, or Home Possible could work for you.
- Verify whether Bucks County or Perkasie has current local assistance funds or MCCs available.
- Request at least two loan estimates so you can compare rates, fees, mortgage insurance, and DPA packaging.
- Tour homes within your program’s price caps and property rules.
- Partner with a local agent who knows the programs and the Perkasie market and can coordinate with your lender.
When you are ready to take the next step, reach out for local guidance and a step-by-step plan. You will get help aligning the right program with the right home and the right budget.
Monique Altomonte can help you understand your options, connect you with PHFA-approved lenders, and map out a clear path to buying in Perkasie.
FAQs
What is a first-time buyer in Pennsylvania?
- Most programs consider you a first-time buyer if you have not owned a principal residence in the past three years, with possible exceptions for veterans or targeted areas.
How much cash do I need for a down payment?
- FHA typically requires 3.5 percent down, conventional programs can allow 3 percent down, and VA or USDA may offer zero down for eligible buyers. Closing costs are additional.
Is down payment assistance a grant or a loan?
- It can be a forgivable second lien, a zero-interest deferred second, or a low-interest repayable second loan. The terms depend on the specific program.
Do I need a special lender to use PHFA or DPA?
- Yes. Many assistance programs require you to work with an approved lender. Start with PHFA-approved lenders or local lenders experienced with these programs.
Will assistance increase my monthly payment?
- Not always. Forgivable or deferred DPA usually does not add a monthly payment, but repayable second loans do. Your lender can compare options for you.
How long does closing take when using assistance?
- Many purchases close in 30 to 60 days. If state or county DPA is involved, allow extra time for approvals and paperwork.
Can I combine seller concessions with DPA?
- Often yes, within program and lender limits on seller-paid costs. Your loan type determines the maximum allowed.
What local offices should I contact for Bucks County assistance?
- Check Bucks County government housing or community development departments, the Redevelopment Authority, and the Borough of Perkasie for local program updates and counseling resources.
