See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 1, 2026
Homebuyer Programs in Reading, PA (2026)
Reading is the county seat of Berks County in southeastern Pennsylvania, located about 60 miles northwest of Philadelphia along the Schuylkill River. With a median home price around $227,000, Reading offers some of the most affordable homeownership opportunities in the region. First-time buyers can access significant assistance through programs like the PHFA Keystone Forgivable in Ten Years Loan (K-FIT), which provides up to 5% of the purchase price as a forgivable second mortgage, the City of Reading HOME Homebuyer Assistance offering up to $25,000, and settlement cost assistance through Neighborhood Housing Services of Greater Berks. Diamond Credit Union participates in two FHLBank Pittsburgh grant programs: the First Front Door program offering up to $15,000 and the First Front Door Keys program offering up to $20,000 for first-generation and minority first-time buyers. By combining state and local programs, Reading homebuyers may be able to stack over $30,000 in assistance toward their purchase.
City Programs in Reading
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Reading HOME Homebuyer Assistance | Deferred Loan | Up to $25,000 for down payment and closing costs | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $25,000 for down payment and closing costs
- 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 |
|---|---|---|---|---|
| Diamond Credit Union First-Time Homebuyer DPA | Grant | Up to $15,000 grant (First Front Door) or up to $20,000 grant (First Front Door Keys for first-generation buyers) | Yes | View → |
| Habitat for Humanity of Berks County Homeownership Program | Repayable Loan | Affordable 30-year mortgage on a Habitat-built or renovated home | Yes | View → |
| NHS Greater Berks Settlement Cost Assistance Program | Deferred Loan | Closing cost and down payment assistance (amount varies) | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $15,000 grant (First Front Door) or up to $20,000 grant (First Front Door Keys for first-generation buyers)
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Affordable 30-year mortgage on a Habitat-built or renovated home
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Closing cost and down payment assistance (amount varies)
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Most programs require household income at or below 80% of the Area Median Income for Berks County, though the FHLB First Front Door Keys program extends to 120% AMI for first-generation buyers. Review income limits on the PHFA website or contact NHS of Greater Berks at 610-372-8433.
Step 2: Complete homebuyer education. Enroll in a free FASTRAC homebuyer education course offered by NHS of Greater Berks at 213 N. 5th Street, Suite 1030, Reading, PA 19601. This satisfies PHFA and most local program requirements. The Keys program requires at least four hours of homeownership counseling including predatory lending topics.
Step 3: Review your credit and finances. Work with NHS of Greater Berks for free budget and credit counseling to ensure you meet minimum credit score requirements (typically 660 for PHFA programs).
Step 4: Get pre-approved for a mortgage. Contact a PHFA-approved lender or Diamond Credit Union at 610-326-5490 to get pre-approved. Ask about combining a Keystone Home Loan or Keystone Flex mortgage with K-FIT or Keystone Advantage assistance, and inquire about FHLB First Front Door or Keys grant eligibility.
Step 5: Apply for local assistance. Once pre-approved, work with your lender and NHS of Greater Berks to apply for settlement cost assistance and any FHLB grants. Also contact the City of Reading Department of Community Development at 610-655-6328 about HOME program assistance for properties within city limits.
Step 6: Find a home within program guidelines. Search for homes in Reading and Berks County that meet program requirements, including purchase price limits and property condition standards.
Step 7: Complete your purchase. Your lender and housing counselor will coordinate the closing process, ensuring all assistance funds are applied correctly to your down payment and closing costs.
Frequently Asked Questions
How much down payment assistance can I get in Reading, PA?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
Can I buy a home in Reading with no money down?+−
Are there special programs for Reading city residents?+−
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