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First Time Homebuyer Loans & Grant Programs

Down Payment Grants, Below-Market Rates & No PMI for Qualified Buyers in Pennsylvania

Down payment assistance. Below-market rates. No PMI. Our first-time homebuyer programs for Pennsylvania buyers — including Community Lending, Home Possible®, FHLB First Front Door, and more — are designed to reduce what you pay upfront and every month. Six programs. One goal: getting you into your first home.

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Compare Our First-Time Homebuyer Programs

Find the right fit based on your down payment, credit, and income

Program Feature	Community Lending	Peoples Select MTG™	Home Possible®	Refi Possible	FHLB First Front Door	PSBT Grant
Program Type	Purchase Loan	Purchase Loan	Purchase Loan	Refinance Loan	Grant	Grant
Assistance Amount	Combine with grantsUp to $16,500*	Combine with grants	Combine with grants	N/A	Up to $15,0003:1 match	Up to $1,500Closing costs
Minimum Down Payment	3%	20%	3%	3%	Varies by loan	Varies by loan
Minimum Credit Score	640	Contact us	620	620	620	Contact us
Private Mortgage Insurance	Lender-Paid	Standard	Reduced	Reduced	Varies by loan	Varies by loan
Interest Rate	Up to 2% below marketCurrently 5.00% APR	Competitive fixed	Fixed or ARM	Fixed or ARM	Varies by loan	Varies by loan
Maximum Loan Amount	$300,000	$500,000	Conforming limits	Conforming limits	Varies by loan	Varies by loan
Income Limit	≤80% AMI	≤80% AMI	≤80% AMI	≤80% AMI	≤80% AMI	≤80% AMI
Best For	Lowest monthly payment	Larger loan amounts	Flexible credit	Current homeowners	Maximizing grants	Extra closing help

*Maximum grant assistance combines up to $15,000 from FHLB First Front Door + up to $1,500 from PSBT Grant for qualifying borrowers. Income limits based on Area Median Income (AMI) as published by HUD. Programs subject to eligibility and funding availability.

Not sure which program is right for you? Our mortgage specialists can help you compare options.

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Do I Qualify?

Eligibility is based on HUD's Area Median Income (AMI) guidelines, which vary by county and household size. Most programs require household income at or below 80% AMI. For example, Northeastern Pennsylvania, this typically ranges from $55,000 to $70,000 for a family of four, depending on your county. Not sure if you qualify? We'll review your income and household size to match you with the right program — there's no cost or obligation.

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First-Time Homebuyer Mortgage Programs & Grants for Pennsylvania Residents

Community Lending Program

Our Community Lending Program^(1,2) is more than just financing; it’s about empowerment. This initiative aims to assist low-to-moderate income borrowers⁽³⁾ access the necessary resources while boosting your buying power and providing essential support throughout the home buying process. With affordable rates and dedicated support, we’re here to guide you step-by-step on the path to homeownership!

EXCLUSIVE LOW INTEREST RATES: Up to 2% lower than our 30 year fixed rate.⁽¹⁾
CREDIT SCORE FLEXIBILITY: 640 minimum credit score requirement.
LOW DOWN PAYMENT^(5,7): Minimum 3% down(5) and NO Private Mortgage Insurance (PMI).⁽⁶⁾
ASSISTANCE OPTIONS: Use in conjunction with other closing costs and down payment assistance programs.⁽⁷⁾
EXPERT GUIDANCE: Homeownership counseling required to prepare you for home ownership.⁽⁴⁾

(1) Community Lending Program Mortgages are available on 1st lien, 1-4 family owner occupied primary residence with a 30 year maximum term and $300,000 maximum loan amount. Annual Percentage Rate (APR) of 5.022% for 30 years with a monthly payment of $5.37 per $1,000 borrowed. Payments disclosed do not include taxes & insurance. Title and property insurance are required; flood insurance is required when applicable. Other closing costs may apply. The Community Lending Program rate is 2% lower than the current PSBT 30 year fixed mortgage rate of 7.00%, effective 12/9/2024. This rate reflects a 0.25% reduction for autodraft of payment from a Peoples Security Bank & Trust checking account. Subject to credit approval. Offer subject to change at any time without notice.

(2) Maximum debt-to-income ratio is 45%.

(3) Borrower’s household income may not exceed 80% of the county median income per household as recently published by HUD.

(4) Online Home Buyer education course required through MGIC.

(5) Finance up to 97% of the lower of the purchase price or appraised property value.

(6) Lender paid PMI.

(7) Minimum contribution of 1% for 1 unit owner-occupied properties. Down payment assistance in the form of Local or County Assistance Programs/Grants, Peoples Security Bank & Trust grants and loans may be combined with borrower funds to meet down payment and closing cost requirements.

Peoples Select MTG^TM

Purchasing a new home or refinancing your existing mortgage? Our Residential Mortgage Loan for low-to-moderate income borrowers provides a fast, low cost and convenient solution to your mortgage needs.

This Special Mortgage Program^(2,3,6) for low-to-moderate income borrowers⁽⁵⁾ offers advantages many other banks don’t.

Lock in a Low Fixed Interest Rate⁽¹⁾
Low Annual Percentage Rate
Low Closing Costs
NO BANK FEES⁽⁴⁾ for Low-to-Moderate Income Borrowers⁽⁵⁾
Longer Term Options Available

(1) Current rates and full account disclosure available upon request. This excludes the financing of bank-owned (credit sale) transactions.

(2) Peoples Select MTG™ is available for first lien purchase and refinance 1-4 family owner-occupied primary residence transactions in amounts up to $500,000 with autodraft from a Peoples Security Bank checking account. Borrow up to 80% of the property’s value with short term financing. Other rates and terms are available. Borrower-paid homeowners insurance required. Borrower-paid flood insurance may be required as necessary. Rates are locked as of date of application for a 60-day period and are subject to market condition changes thereafter.

(3) All loans subject to credit and collateral approval.

(4) Examples of bank fees are: origination fees/points, application fee, documentation fee, credit report, appraisal fee, mortgage recording fee, bank provided property search fee, bank attorney fee, flood certification fee, underwriting fee, tax service fee, courier fee. Borrowers are responsible for all other costs and fees. Title insurance is required on purchase transactions; otherwise, title insurance is at discretion of the underwriter for refinance transactions.

(5) Borrower’s household income may not exceed 80% of the county median income per household as most recently published by HUD. Respective county information available upon request. Other household income options available.

(6) Down payment may consist of a combination of PSBT First Time Home Buyer Grant Program, qualified gift funds, local or county assistance programs and seller assist when applicable. This offer may discontinue at any time without notice.

Home Possible^® Mortgage

Make home purchase a reality with Home Possible^® Mortgage. A loan that offers additional flexibilities and financing options for those who qualify as very-low and low-to-moderate income, as well as those in underserved markets seeking low down payment options.

Low down payment with a variety of down payment sources
Purchase and no cash-out refinancing
Fixed and adjustable rate mortgages available
Income and credit flexibility

Freddie Mac Refi Possible^SM Mortgage

Freddie Mac Refi Possible^SM mortgage offers unique flexibilities for low-income borrowers looking to refinance their existing Freddie Mac-owned loan into a more sustainable mortgage.

Refi Possible encourages long-term homeownership success by enabling borrowers to take advantage of today’s interest rate environment. This program benefits the following categories of borrowers:

Lower income borrowers who may not have realized the benefit of refinancing their current loan.
Borrowers looking to save more on their monthly principal and interest payments.
Borrowers with current mortgages owned by Freddie Mac.
1-unit primary residence, manufactured housing and all eligible property types.

Fixed interest rate
Income eligibility of 80% of area median income

FHLB (Federal Home Loan Bank) First Front Door Program

First Front Door may assist qualified first time home buyers with a grant, matching $3 for every $1 applied toward a down payment and closing costs. You may be approved for up to $15,000 when funding is available through the FHLB Grant Program.

To learn about whether you may be eligible for the FHLB Grant, contact an experienced Mortgage Loan Originator at Peoples Security Bank at 1.844.PSBT.NOW.

To learn more or to see if funding is available for the FHLB of Pittsburgh’s First Front Door Grant Program, please click here.

Residential Mortgage Grant Assistance Programs

Peoples Security Bank & Trust is pleased to offer two grant programs to assist residential home applicants. Qualified applicants are those who are purchasing or refinancing a home who qualify as low-to-moderate-income borrowers⁽²⁾, receive approval, and close their mortgage loan through the PSBT Residential Lending area.

FIRST TIME HOME BUYER GRANT PROGRAM ^(1,3,4,5)—available for home purchase or home construction mortgages. Peoples Security Bank & Trust will contribute up to $1,500 towards closing costs.
MORTGAGE REFINANCE GRANT PROGRAM^(1,5)—available for existing primary residence refinance loans. Peoples Security Bank & Trust will contribute up to $500 towards closing costs.
Assists low to moderate income borrowers⁽²⁾

(1) Approval is based on Applicant(s) income.

(2) Borrower’s household income may not exceed 80% of the county median income per household as most recently published by HUD. Respective county information available upon request. Other household income options available.

(3) Maximum debt-to-income ratio 43%.

(4) Must meet the bank’s definition of first-time homebuyer.

(5) Bank may discontinue grant programs at any time without notice.

Frequently Asked Questions

Who qualifies as a first-time homebuyer?

You're considered a first-time homebuyer if you have not owned a primary residence in the past three years. This also includes single parents who only owned a home with a former spouse, displaced homemakers, and individuals who previously owned a home that didn't meet building codes. Veterans and buyers purchasing in targeted areas may also qualify for first-time buyer benefits regardless of ownership history.

What credit score do I need to buy a home?

Credit score requirements vary by program. Our Community Lending Program requires a minimum credit score of 640. Some government-backed loans like FHA may accept scores as low as 580 with a higher down payment. Not sure where you stand? We can review your credit situation and recommend the best program for you.

How much down payment do I need?

Down payment requirements depend on the loan program. Our Community Lending Program allows qualified buyers to purchase with as little as 3% down. FHA loans require 3.5% down, while VA and USDA loans may require no down payment at all for eligible borrowers. Down payment assistance grants can help cover some or all of this cost.

How much down payment assistance can I receive?

Qualified first-time homebuyers may be eligible for up to $6,500 in grant assistance through a combination of programs. The FHLB First Front Door program provides up to $5,000 in grants by matching $3 for every $1 you contribute toward your down payment. Our PSBT First Time Home Buyer Grant adds up to $1,500 toward closing costs. These grants do not need to be repaid.

What is PMI and can I avoid it?

Private Mortgage Insurance (PMI) is typically required when you put down less than 20% on a conventional loan. It protects the lender and adds to your monthly payment. Our Community Lending Program does not require borrower-paid PMI, even with just 3% down — this can save you hundreds of dollars each month compared to other low-down-payment options.

What are the income limits for first-time homebuyer programs?

Most first-time homebuyer programs require household income at or below 80% of the Area Median Income (AMI) for your county, as published by HUD. Income limits vary by county and household size. In Northeastern Pennsylvania, this typically ranges from $55,000 to $70,000 for a family of four. Our mortgage team can confirm your eligibility based on your specific situation.

Is homebuyer education required?

Yes, most first-time homebuyer programs require completion of a homebuyer education course before closing. Our Community Lending Program requires an online course through MGIC. The FHLB First Front Door program requires at least four hours of homeownership counseling. These courses help prepare you for the responsibilities of homeownership and are typically available online at low or no cost.

How do I get started?

The first step is to connect with one of our mortgage specialists. We'll review your income, credit, and savings to determine which programs you qualify for and help you understand your buying power. There's no cost or obligation to get pre-qualified. You can fill out a form, call us at 1.844.PSBT.NOW, or visit any PSBT branch to get started.