See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 1, 2026
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.
County Programs in Lancaster County
| 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 → |
- Type:
- Deferred Loan
- Amount:
- 8% of sales price, up to $5,000
- First-time only:
- Yes
State Programs in Pennsylvania
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 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:
- 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
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 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 → |
| 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 → |
- 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:
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 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 → |
- 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
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.
Frequently Asked Questions
How much down payment assistance can I get in Lancaster?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price for Lancaster programs?+−
What homebuyer education is required?+−
What is the Tenfold Southwest Lancaster program?+−
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