See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 1, 2026
Homebuyer Programs in Lebanon, PA (2026)
Lebanon is the county seat of Lebanon County in south-central Pennsylvania, situated between Harrisburg and Reading in the fertile Lebanon Valley. With a median home price around $200,000, Lebanon offers affordable homeownership with strong community roots. The Lebanon County First-Time Homebuyer Program, administered by the Lebanon County Redevelopment Authority, provides up to $25,000 in gap funding for down payment and closing costs through HOME Investment Partnership funds. At the state level, the PHFA K-FIT program offers up to 5% of the purchase price as a forgivable loan, and the HOMEstead program adds up to $10,000 more. Lancaster Lebanon Habitat for Humanity also offers affordable homeownership opportunities with zero-interest mortgages for qualifying families. By combining county and state programs, Lebanon buyers could potentially access over $35,000 in assistance.
County Programs in Lebanon County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Lebanon County First-Time Homebuyer Program | Forgivable Loan | Up to $25,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $25,000
- 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 → |
| NACA Purchase Program | Zero-Interest Loan | No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate | No | 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:
- Zero-Interest Loan
- Amount:
- No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The Lebanon County First-Time Homebuyer Program requires household income at or below 80% of the area median income. For a two-person household, that is approximately $48,800 per year. You must be a first-time homebuyer.
Step 2: Contact the Lebanon County Redevelopment Authority. Call (717) 274-1401 ext. 134 to learn about the First-Time Homebuyer Program and begin the application process. The program can provide up to $25,000 in gap funding for down payment and closing costs.
Step 3: Complete homebuyer education. The City of Lebanon offers Homebuyer 101 Classes available in English and Spanish. PHFA state programs also require a HUD-approved homebuyer education course, available online through eHome America or Framework.
Step 4: Get pre-approved for a mortgage. Connect with a PHFA-approved lender to access state programs like K-FIT and HOMEstead. The county program works with your primary mortgage to close the gap between your loan amount and the purchase price.
Step 5: Find a home in Lebanon County. Your home must be in Lebanon County for the county program. Confirm purchase price limits with the Redevelopment Authority and your lender.
Step 6: Submit your applications and close. Work with the Redevelopment Authority and your lender to coordinate program timelines and submit all required documentation.
Frequently Asked Questions
How much down payment assistance can I get in Lebanon?+−
Do I have to be a first-time homebuyer to qualify?+−
What are the income limits for the Lebanon County program?+−
What homebuyer education is required?+−
How does the $25,000 county assistance work?+−
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