How Much Do I Need for a Down Payment in Montgomery County, PA?
Most Montgomery County buyers do not need 20 percent down. Conventional loans can start at 3 percent down for qualified buyers, FHA loans at 3.5 percent, and VA loans at 0 percent for eligible veterans. Montgomery County and the Pennsylvania Housing Finance Agency (PHFA) also offer assistance programs that can help eligible buyers with their down payment and closing costs. Just remember to budget for closing costs too, which typically add 2 to 5 percent of the price.
Do I really need 20 percent down?
No. Putting 20 percent down helps you avoid private mortgage insurance (PMI) on a conventional loan and lowers your monthly payment, but it is not required. Many buyers put down less and accept PMI so they can buy sooner and keep cash in reserve. On a $469,000 home, close to the county's recent median sold price, 20 percent would be about $93,800. Three percent would be about $14,070.
What are the low down payment loan options?
Conventional loans: As low as 3 percent down for qualified buyers, with PMI until you reach enough equity.
FHA loans: As low as 3.5 percent down, with more flexible credit requirements.
VA loans: 0 percent down for eligible veterans and service members.
PHFA Keystone Home Loan: Pennsylvania's program for first-time buyers (or those who have not owned in three years), with income and purchase price limits that vary by county.
What down payment assistance is available in Montgomery County?
Montgomery County first-time homebuyer assistance: Up to $10,000 toward down payment and closing costs for eligible first-time buyers, with income limits and a required homebuyer counseling session. You must contribute some of your own funds, and funding is limited.
PHFA K-FIT: A forgivable second loan for down payment and closing costs, forgiven over ten years if you stay in the home.
PHFA Keystone Advantage Assistance: A low or no interest second loan for down payment and closing costs, used with a PHFA first mortgage.
Some programs can be combined and some cannot. Rules, amounts, and funding change, so always confirm the current details before you count on them.
How much cash do I need in total?
Plan for three buckets:
Down payment (from 0 to 20 percent or more, depending on your loan)
Closing costs, typically 2 to 5 percent of the price in Montgomery County, including your share of the 2 percent realty transfer tax
Earnest money and inspections, paid early in the process
A seller credit negotiated in your offer can help cover closing costs, which reduces the cash you need on closing day.
How does the Shaina McAndrews Team help buyers with less saved?
As a signed buyer client, you get:
A Personalized Path to Homeownership after your consultation, built around the cash you actually have
Help identifying which assistance programs you may qualify for and which can be stacked
Connections to trusted lenders who work with these programs
Offers written to request seller credits toward your closing costs when the home and market support it
Our Off Market Search Team, so you are not limited to the most competitive public listings
You may be closer to buying than you think.
The Shaina McAndrews Team at eXp Realty has more than 10 years of experience helping first-time and repeat buyers in Montgomery County and Greater Philadelphia. We are licensed in PA and NJ, and we plant a tree for every home we close (more than 1,000 so far). When you book, tell us which program you think might fit and we will prepare for your call.
Schedule a Buyer Strategy Consultation
Home Buyer Assistance Programs
Call or text 215.767.7150 or visit MontCoLiving.com.
Sources
Montgomery County Office of Housing and Community Development, Homebuyers Program
Pennsylvania Housing Finance Agency, Keystone Home Loan, K-FIT, and Keystone Advantage Assistance programs
CBHRE, September 2026 Housing Market Report (Montgomery County median sold price)
