First-Time Home Buyer Specialist
First-Time Home Buyer Guide
Your complete roadmap to buying your first home in the Lehigh Valley, PA.
Tim Tepes
Assoc Broker, Tim Tepes Real Estate LLC | PA License #AB062628L
How do I buy my first home in the Lehigh Valley?
Buying your first home is one of the biggest financial decisions you will ever make, and it doesn't have to be overwhelming. In the Lehigh Valley, Pennsylvania, first-time buyers have access to some of the most generous down payment assistance programs in the country, competitive home prices, and a wide variety of neighborhoods. With 36+ years of experience, 700+ closed transactions, and a patient, educational approach, Tim Tepes guides first-time buyers through every stage with clarity and expertise.
First-Time Buyer Report: October 2026
This report tracks the Lehigh Valley housing market for first-time buyers using the most recent Greater Lehigh Valley REALTORS (GLVR) data: the median home price across Lehigh and Northampton Counties is $370,000, up 5.9% from a year earlier, with homes averaging about 19 days on market and supply still well below a balanced market.
October 2026 Headline Stats
- Median home price: $370,000, up 5.9% year over year across Lehigh and Northampton Counties (GLVR market data).
- Month over month, the median eased from recent highs, after two consecutive record months earlier this year.
- Active inventory remains tight, still well below the level that marks a balanced market.
- Homes average about 19 days on market, and well-priced homes continue to attract competition at first-time buyer price points.
How much inventory is available?
GLVR reports active inventory across Lehigh and Northampton Counties remains well below the level that marks a balanced market, and supply keeps straining against steady demand. GLVR does not publish a separate count for the first-time buyer price band; with a region-wide median of $370,000, a meaningful share of active listings falls in the range where first-time buyers typically shop.
How quickly are homes selling?
The latest GLVR figures show homes averaging about 19 days on market, and well-priced homes continue to draw offers quickly. In practical terms, homes in the Lehigh Valley sell in about three weeks on average.
Tip for first-time buyers this month
Get pre-approved before you start touring. With homes averaging about 19 days on market and competition common at first-time buyer price points, a pre-approval letter lets you act quickly when the right home appears and shows sellers you are ready. Ask your lender about PHFA programs before you settle on a loan product: assistance can reduce your out-of-pocket costs by thousands.
Down payment assistance currently available
These programs were verified in October 2026. Amounts and income caps change frequently, so confirm current terms directly with each agency before applying.
- PHFA K-FIT: a forgivable second mortgage of up to 5% of the purchase price or appraised value for down payment and closing costs, forgiven 10% per year over 10 years. Program details at PHFA.
- PHFA Keystone Advantage Assistance: a 0% interest second mortgage of up to 4% of the purchase price or $6,000, whichever is less, for down payment and closing costs; a minimum credit score of 660 applies. Program details at PHFA.
- PHFA HOMEstead: up to $10,000 in no-interest down payment and closing cost assistance, forgiven over five years if the buyer remains in the home.
- PHFA Grant: a $500 grant toward down payment or closing costs when paired with the HFA Preferred (Low MI) loan.
- Northampton County First-Time Homebuyer Program: up to $10,000 in forgivable assistance for down payment and closing costs, forgiven 20% per year over five years. Requirements include first-time buyer status, income at or below 80% of the Lehigh Valley median income, a primary mortgage from a participating lender, and homebuyer counseling.
- Bethlehem Homebuyer Assistance Program (BHAP): a deferred-payment loan of up to 10% of the purchase price plus closing costs, with no monthly payment, forgiven over 10 years; the buyer contributes $1,000. Program details at the Bethlehem Redevelopment Authority.
- Neighborhood Housing Services of the Lehigh Valley and Community Action Lehigh Valley: down payment and closing cost assistance through the HOOP program, serving Allentown, Bethlehem, Easton, and Northampton County. Lehigh County housing program list.
Step-by-Step: The First-Time Buying Process
Here is a simple, step-by-step breakdown of what to expect when buying your first home in the Lehigh Valley:
Check Your Credit & Budget
Pull your credit reports from all three bureaus (free at AnnualCreditReport.com). Aim for a 580+ score for FHA or 620+ for conventional loans. Determine what monthly payment feels comfortable, typically no more than 28–31% of gross monthly income.
Get Pre-Approved
A mortgage pre-approval letter shows sellers you are serious and tells you exactly how much home you can afford. Compare offers from 2–3 lenders to find the best rate and terms. Tim can refer you to trusted local mortgage professionals.
Explore Down Payment Assistance
Pennsylvania offers several programs, including PHFA K-FIRST (up to $15,000 in assistance), Keystone Advantage Assistance (4% of purchase price), and county-level grants. These can dramatically reduce your out-of-pocket costs.
Hire a Buyer's Agent
Work with an experienced agent who knows the Lehigh Valley inside and out. Your agent represents your interests, negotiates on your behalf, and guides you through every step, at no cost to you as a buyer.
Define Your Needs & Tour Homes
Consider your budget, preferred school district, commute, home size, and neighborhood. Tour properties that match your criteria and visualize your life in each community.
Make an Offer
When you find the right home, your agent will craft a competitive offer based on current market data and comparable sales. Negotiate terms that protect your interests.
Home Inspection & Due Diligence
Schedule a professional home inspection. In the Lehigh Valley, pay special attention to radon levels, lead paint in pre-1978 homes, and well/septic systems in rural areas.
Final Approval & Appraisal
Your lender orders an appraisal to confirm the home's value. Stay in close communication with your lender and avoid any major financial changes during this period.
Closing Day
Review all closing documents, bring your government-issued ID and funds for closing costs (2–5% of purchase price in PA), sign the paperwork, and receive the keys to your new home.
Pennsylvania First-Time Buyer Programs
Pennsylvania offers some of the most generous first-time buyer assistance programs in the nation through the Pennsylvania Housing Finance Agency (PHFA):
PHFA K-FIRST
Up to $15,000The Pennsylvania Housing Finance Agency's K-FIRST program provides up to $15,000 in down payment and closing cost assistance to qualifying first-time buyers. Available as a second mortgage at 0% interest, repayable only when you sell, refinance, or transfer the property.
Learn more at PHFAKeystone Home Loan
Below-Market RatesPHFA's Keystone Home Loan offers below-market interest rates for first-time home buyers throughout Pennsylvania. Income and purchase price limits apply. Can be combined with Keystone Advantage Assistance for additional help.
Learn more at PHFAKeystone Advantage Assistance
4% of Purchase PriceA repayable loan of up to 4% of the purchase price, usable toward down payment and closing costs. Available with Keystone Home Loan or HFA Preferred programs. The loan is repaid over 10 years in equal monthly installments.
Learn more at PHFAHFA Preferred
Low MI + AssistanceA conventional loan product through PHFA with reduced mortgage insurance costs and eligibility for down payment assistance. First-time buyers can qualify with as little as 3% down.
Learn more at PHFALoan Options for First-Time Buyers
FHA Loans
3.5% Down, 580+ Credit Score- Down payment as low as 3.5% with a credit score of 580+
- Credit score of 500–579 requires 10% down
- Mortgage insurance premium (MIP) required, both upfront (1.75%) and annual
- Seller can contribute up to 6% toward closing costs
- Gift funds from family members allowed for the entire down payment
- Non-occupant co-borrowers allowed
VA Loans
0% Down, No PMI- 0% down payment, no down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
- VA funding fee (can be rolled into the loan)
- Available to eligible veterans, active-duty service members, and surviving spouses
- Seller can pay up to 4% in concession costs
USDA Loans
0% Down, Rural & Suburban Areas- 0% down payment for eligible rural and suburban areas
- Parts of Northampton, Lehigh, and Carbon Counties qualify
- All of Carbon County is generally eligible
- In Northampton and Lehigh Counties, areas north of Route 22 and south of I-78 tend to qualify
- Guarantee fee of 1% upfront and 0.35% annually
- Income limits apply (typically 115% of area median income)
Conventional with 3% Down
Fannie Mae HomeReady
As low as 3% down, reduced mortgage insurance, income from boarders or rental units can count toward qualification. Designed for creditworthy low-to-moderate income borrowers.
Freddie Mac Home Possible
As low as 3% down, flexible sources for down payment including gifts, grants, and community programs. 100% of down payment can come from gifts.
USDA Qualifying Areas in the Lehigh Valley
Parts of all three Lehigh Valley counties have USDA-eligible areas. Eligibility is determined by specific address, always verify at the USDA eligibility map.
Carbon County
18013 (Aquashicola), 18071 (Palmerton), 18235 (Lehighton), 18242 (Summit Hill), 18072 (Palmerton), 18064 (Easton Rural)
Northampton County
18042 (Easton, outer areas), 18040 (Easton), 18025 (Bath), 18068 (Nazareth Rural), 18072 (Wind Gap), 18091 (Wind Gap Rural)
Lehigh County
18055 (Fogelsville, outer), 18062 (Macungie, rural areas), 18031 (Breinigsville), 18036 (Coplay Rural)
Note: All of Carbon County is generally eligible. In Northampton and Lehigh Counties, rural areas north of Route 22 and south of I-78 tend to qualify. Always confirm with the official USDA map for the specific address.
Is down payment assistance available in the Lehigh Valley?
Beyond the statewide PHFA programs, several county-level and local programs can help first-time buyers in the Lehigh Valley:
- Northampton County: The Northampton County Affordable Housing Program offers down payment and closing cost assistance for income-qualifying buyers. Combined with PHFA programs, buyers may access $15,000–$25,000+ in total assistance.
- Lehigh County: The Lehigh County Department of Community & Economic Development administers housing programs including down payment assistance and home rehabilitation grants for eligible buyers.
- Carbon County: First-time buyers in Carbon County can access USDA 0% down loans across most of the county plus PHFA programs. Some local programs may also be available.
- Employer-Assisted Housing: Many Lehigh Valley employers, including hospitals, universities, and manufacturers, offer homebuyer assistance programs for employees. Ask Tim if your employer participates.
Credit Score Improvement Tips
Pay Bills On Time
Payment history is 35% of your credit score. Even one missed payment can drop your score significantly. Set up autopay for all recurring bills.
Lower Credit Utilization
Keep credit card balances below 30% of your limit (ideally under 10%). Paying down balances is the fastest way to boost your score.
Avoid New Credit
Don't open new credit cards or take on new debt 6–12 months before buying. Each new inquiry can lower your score by 5–10 points.
Dispute Errors
Review your credit reports for errors, incorrect balances, outdated accounts, or fraudulent activity. Dispute any inaccuracies promptly.
Become an Authorized User
Being added as an authorized user on a family member's credit card with a long positive history can boost your score quickly.
Keep Old Accounts Open
The length of your credit history matters. Don't close old credit cards, even if you don't use them, they help your credit age and utilization ratio.
Pre-Approval Checklist
Gather these documents before applying for a mortgage pre-approval:
Home Inspection Guide for the Lehigh Valley
The Lehigh Valley has specific inspection considerations every first-time buyer should know about:
Radon testing
Pennsylvania has elevated radon levels. EPA recommends mitigation if levels exceed 4.0 pCi/L. Average cost to mitigate: $800–$1,200.
Lead paint inspection
Required disclosure for homes built before 1978. A lead paint inspection or risk assessment costs $300–$600 and is strongly recommended.
Well & septic inspection
Common in rural parts of Carbon, Northampton, and Lehigh Counties. Well water testing should include bacteria, nitrates, and radon. Septic inspections cost $300–$500.
Structural evaluation
Foundation cracks, water intrusion, and settling are common in older Lehigh Valley homes, especially those built on hillside lots.
Roof condition
Given the region's snow, ice, and storm activity, roof condition is critical. A new roof can cost $8,000–$15,000.
HVAC and electrical
Many Lehigh Valley homes still have original electrical panels or aging HVAC systems. Upgrades can be $5,000–$15,000.
Closing Cost Breakdown for Pennsylvania
Closing costs in Pennsylvania typically range from 2–5% of the purchase price. Here is a breakdown of common costs:
| Cost Item | Typical Range |
|---|---|
| Loan origination fee | 0.5–1% of loan amount |
| Appraisal fee | $400–$600 |
| Home inspection | $350–$500 |
| Radon testing | $150–$250 |
| Title search & insurance | $1,000–$3,000 |
| Attorney/settlement fee | $800–$1,500 |
| Transfer tax (PA) | 1% of sale price (split buyer/seller) |
| Recording fees | $100–$300 |
| Prepaid property taxes | 2–6 months |
| Homeowners insurance | First year premium (varies) |
| Escrow reserves | 2–3 months of taxes & insurance |
Property Tax Info by School District
Property taxes vary significantly by school district in the Lehigh Valley. Understanding millage rates helps you accurately budget your monthly payment:
Bethlehem Area SD
59.99 mills
~$3,600/yr on $200K assessed value
Northampton Area SD
58.52 mills
~$3,510/yr on $200K assessed value
Nazareth Area SD
~57 mills (est.)
~$3,420/yr on $200K assessed value; 4.1% increase for 2025-26
Whitehall-Coplay SD
~56 mills (est.)
~$3,360/yr on $200K assessed value; 4.5% increase for 2024-25
Millage rates are approximate and subject to change. Actual property tax bills depend on assessed value, county taxes, and municipal taxes in addition to school district millage. Consult Tim or your county assessor for exact figures.
Common First-Time Buyer Mistakes to Avoid
Skipping Pre-Approval
Getting pre-approved before you shop is essential. Without it, you waste time looking at homes outside your budget and your offer carries less weight with sellers.
Not Budgeting for Closing Costs
Closing costs in PA typically range from 2–5% of the purchase price. On a $300K home, that's $6,000–$15,000 on top of your down payment.
Making Big Purchases Before Closing
Avoid buying a car, opening new credit cards, or making large purchases between pre-approval and closing, these can jeopardize your mortgage approval.
Waiving the Home Inspection
In a competitive market, the temptation to waive inspections is real. But skipping an inspection can expose you to thousands in hidden repairs, radon, structural issues, or outdated electrical.
Not Shopping for the Best Mortgage Rate
Even small differences in rates add up. A 0.25% rate difference on a $300K loan over 30 years can cost you $15,000+ in extra interest.
Ignoring School District Taxes
Property taxes vary significantly by school district in the Lehigh Valley. Factor millage rates into your monthly payment calculations to avoid surprises.
Falling in Love Before the Appraisal
If the appraisal comes in low, you may need to renegotiate the price, bring extra cash, or walk away. Stay emotionally prepared for all outcomes.
Not Understanding USDA Eligibility
Many Lehigh Valley buyers qualify for USDA 0% down loans without realizing it. Always check eligibility for the specific property address before assuming you need a large down payment.
Why First-Time Buyers Choose Tim Tepes
Buying your first home is complex, but it doesn't have to be stressful. Tim Tepes brings 36+ years of local expertise and has closed 700+ transactions, giving first-time buyers a competitive edge that no other agent can match.
Tim is known for his patience with first-time buyers. He takes the time to explain every step, answer every question, and ensure you feel confident at each stage of the process, from pre-approval through closing day.
As a Licensed Associate Broker and Past President of the Greater Lehigh Valley REALTORS®, Tim operates at the highest level of professional accountability. His deep market knowledge, honest pricing guidance, and strong negotiation protect your interests.
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Market Data
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Get Your Free First-Time Buyer Roadmap
Your first home should not feel like a guessing game. Tim will put together a free first-time buyer roadmap for you: your realistic buying power, down payment assistance programs you may qualify for, and the Lehigh Valley neighborhoods that fit your budget and lifestyle.
Tim Tepes | Assoc Broker, Tim Tepes Real Estate LLC | PA License #AB062628L
A Personal Note From Tim
Tim Tepes | PA Licensed Associate Broker | Better Homes and Gardens Real Estate Cassidon Realty
Buying your first home is exciting and a little intimidating all at once, and that is exactly how it should feel. I have guided first-time buyers through every kind of market since 1990, taught more than a few of them how to read a settlement sheet, and I still get a kick out of handing over the keys on closing day. If you are ready to stop renting and start owning, text me your questions and we will figure out your real buying numbers together.