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Get Matched Free →Homebuyer Programs in Lancaster, PA (2026)
Lancaster is a historic city in south-central Pennsylvania and the seat of Lancaster County, with a population of about 58,000 and a median home price around $250,000. First-time buyers in Lancaster can access the Tenfold Down Payment Assistance Program (formerly LHOP), which provides up to $7,000 as a zero-interest deferred loan, with up to $10,000 available for homes in the Southwest Lancaster area. The Lancaster County First Time Homebuyer Loan offers an additional 8% of the sales price up to $5,000 for down payment and closing costs. At the state level, the PHFA K-FIT program provides 5% of the purchase price as a forgivable loan, and the PHFA HOMEstead Program offers up to $10,000. Lancaster Lebanon Habitat for Humanity also provides affordable homeownership opportunities for qualifying families. By layering local, county, and state programs, eligible Lancaster buyers can potentially stack over $20,000 in assistance toward their home purchase.
Top Homebuyer Programs in Lancaster
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Lancaster County First Time Homebuyer Loan | Deferred Loan | 8% of sales price, up to $5,000 | Yes | View → |
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| Lancaster Lebanon Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable zero-interest mortgage on a Habitat-built or renovated home sold at cost | Yes | View → |
| Tenfold (formerly LHOP) Down Payment Assistance Program | Deferred Loan | Up to $7,000 | Yes | View → |
| PHFA HFA Preferred Grant | Grant | $500 | No | View → |
| PHFA HOMEstead Program | Forgivable Loan | Up to $10,000 | Yes | View → |
| PHFA Keystone Advantage Assistance Loan | Zero-Interest Loan | Up to 4% of purchase price or market value, or $6,000, whichever is less | No | View → |
| PHFA Keystone Forgivable in Ten Years (K-FIT) | Forgivable Loan | 5% of the lesser of the purchase price or appraised value | No | View → |
- Type:
- Deferred Loan
- Amount:
- 8% of sales price, up to $5,000
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable zero-interest mortgage on a Habitat-built or renovated home sold at cost
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $7,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $500
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Up to 4% of purchase price or market value, or $6,000, whichever is less
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- 5% of the lesser of the purchase price or appraised value
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. Most local programs require first-time buyer status (no homeownership in the past 3 years) and income within program limits. The Tenfold DPA program requires all borrowers to have a permanent address in Lancaster County.
- Step 2:
Complete homebuyer education. Tenfold offers a required Home Buyer Course for DPA applicants. Contact them at 717-397-5182 to register. This education also satisfies requirements for most state programs.
- Step 3:
Get pre-approved for a mortgage. Work with a Tenfold partner lender to explore DPA options, and a PHFA-approved lender for state programs like K-FIT and HOMEstead.
- Step 4:
Find a home within program limits. The Tenfold DPA and Lancaster County loan both require the property to be in Lancaster County. The Tenfold program has specific purchase price limits.
- Step 5:
Apply for the Tenfold DPA Program. Your partner lender will help coordinate the application. You must contribute a minimum of $1,000 of your own funds toward the purchase.
- Step 6:
Apply for the Lancaster County First Time Homebuyer Loan. Contact NeighborWorks at 570-558-2490 to inquire about this additional 8% of sales price (up to $5,000) in assistance.
- Step 7:
Apply for state PHFA programs. Through your PHFA-approved lender, apply for K-FIT (5% of purchase price, forgivable over 10 years) and HOMEstead (up to $10,000).
- Step 8:
Close on your home. Your lender and housing counselor will coordinate the layering of all assistance programs to maximize your benefits at closing.