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Get Matched Free →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.
Top Homebuyer Programs in Lebanon
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Lebanon County First-Time Homebuyer Program | Forgivable Loan | Up to $25,000 | 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 → |
| NACA Purchase Program | Zero-Interest Loan | No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate | No | 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:
- Forgivable Loan
- Amount:
- Up to $25,000
- 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:
- Zero-Interest Loan
- Amount:
- No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate
- First-time only:
- No
- 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. 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.