First-Time Buyer Guide
Buying your first home in the Lehigh Valley.
What homes cost, the Pennsylvania programs that help with the down payment, and every step from pre-approval to keys, with real numbers.
Prices
What homes cost here right now.
Lehigh Valley prices set records this summer and homes move quickly, so first-time buyers do best walking in pre-approved, with a clear budget and an agent who can move the same day a good home appears.
Lehigh and Northampton counties combined, August 2026. Source: Greater Lehigh Valley REALTORS®.
Down payment help
Pennsylvania programs that lower what you bring to closing.
The Pennsylvania Housing Finance Agency (PHFA) runs the state’s homebuyer programs through participating lenders. Its assistance options, as PHFA describes them:
| PHFA program | What you get | Key terms |
|---|---|---|
| Keystone Advantage Assistance | Up to 4% of price, max $6,000 | Second loan at 0%, repaid monthly over 10 years. 660+ credit score. |
| K-FIT (Keystone Forgivable in Ten Years) | 5% of price, no dollar cap | Forgiven 10% a year over ten years. 660+ credit score. |
| K-DATE | 8% (loans ≤$150,000) or 5% | 0% interest, no monthly payments, 30-year term. 660+ credit score. |
| PHFA Grant | $500 | No repayment; applied to the purchase. |
On a $379,000 home, 4% would be $15,160, so Keystone Advantage caps out at $6,000; K-FIT’s 5% would be $18,950. Keystone Advantage can’t be stacked with other PHFA assistance, though it can be paired with the $500 grant. PHFA requires homebuyer counseling if your credit score is below 680 and encourages it for everyone.
Keystone Home Loan limits in Lehigh and Northampton counties (effective July 1, 2026): a maximum purchase price of $499,900, and household income up to $106,000 for 1 to 2 people or $121,900 for 3 or more. A PHFA participating lender confirms which programs you qualify for based on your credit and income.
Loan basics
How much you actually need to put down.
For an FHA loan, the minimum down payment is 3.5% if your credit score is 580 or higher. Scores from 500 to 579 can still qualify, with 10% down. On a $379,000 home, 3.5% is $13,265, before closing costs and any assistance. Conventional and other loan types have their own minimums; a lender will lay out the options side by side.
Step by step
From first call to keys.
Budget and pre-approval
Apply with a lender. Within three business days of your application they must give you a Loan Estimate showing your rate, payment, and closing costs, so you can compare lenders on the same form.
A written buyer agreement
Since August 2024, agents must have a written agreement with you before you tour homes. Atika explains every term, including how her compensation works, before you sign.
Search and tour
Homes that fit your budget and your must-haves, toured quickly, because good ones here sell in under three weeks.
Offer
A price and terms built on real comparable sales. Atika explains who pays the realty transfer tax (1% state plus the local share, split by agreement) and what’s normal to ask for.
Inspection and appraisal
Your home inspection, then the lender’s appraisal. In Allentown and Bethlehem, the seller’s city inspection results matter too.
Closing
You must receive your Closing Disclosure at least three business days before closing. Compare it to your Loan Estimate, then sign and get your keys.
In your language: Atika works with first-time buyers in English, Hindi, Punjabi, and Urdu, so nobody in your family has to sign something they don’t fully understand.
Common questions
What first-time buyers ask.
With an FHA loan, the minimum down payment is 3.5% if your credit score is 580 or higher. On the August 2026 Lehigh Valley median price of $379,000, that is $13,265, before closing costs. Pennsylvania’s PHFA programs can cover part of the down payment and closing costs.
PHFA offers Keystone Advantage Assistance (up to 4% of the price or $6,000, at 0% over ten years), K-FIT (5% of the price, forgiven over ten years), K-DATE (0% with no monthly payments), and a $500 grant. The assistance loans require a 660+ credit score.
For the Keystone Home Loan, effective July 1, 2026: a maximum purchase price of $499,900, and household income up to $106,000 for 1 to 2 people or $121,900 for 3 or more people.
Yes. Since August 17, 2024, agents working with buyers must have a written agreement before touring a home, and compensation is fully negotiable.
Yes. Atika Masood, a licensed Pennsylvania REALTOR based in Bethlehem, works with buyers in English, Hindi, Punjabi, and Urdu across Allentown, Bethlehem, Easton, and the surrounding towns.
Start here
Ready to see what you can buy?
Tell Atika your budget and timeline. She’ll help you line up pre-approval, check which PHFA programs fit, and start the search.
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Sources
- Greater Lehigh Valley REALTORS®, “Lehigh Valley Home Sales, Inventory Increase in August” (Sept. 15, 2026)
- PHFA, Assistance Loans for Home Purchase
- PHFA, Keystone Advantage Assistance Loan
- PHFA, Keystone Home Loan Purchase Price and Income Limits (effective July 1, 2026)
- HUD, What is the minimum down payment requirement for FHA?
- HUD, Does FHA require a minimum credit score?
- Consumer Financial Protection Bureau, TILA-RESPA Integrated Disclosure FAQs (Loan Estimate timing)
- Consumer Financial Protection Bureau, When do I get a Closing Disclosure?
- National Association of REALTORS®, Settlement FAQs
- Pennsylvania Department of Revenue, Realty Transfer Tax
Figures checked September 2026. Tax and program rules change; confirm current terms with the named agency, your lender, or a tax professional before you act.