Luzerne County First-Time Buyer Closing Costs: What No One Tells You Until It’s Too Late

by Christopher Madden

Stop Guessing: Real Closing Cost Numbers for Luzerne County First-Time Buyers

Let’s kill the biggest myth right out of the gate: your down payment is not your only upfront cost.
Every week, I meet first-time buyers in Luzerne County who think, “We saved 3%, we’re good!” Then they sit at the closing table, eyes wide, wondering where the extra $8–10K went.

So let’s break down the truth about Luzerne County first-time buyer closing costs, what programs can actually help (and which ones waste your time), and how to walk into your closing without getting sucker-punched by surprise fees.

What Exactly Are “Closing Costs” in Luzerne County?

Here’s the blunt version: it’s every fee the system can possibly tack on before you get the keys.

Expect to pay 5%–6% of your purchase price once you add up lender charges, taxes, insurance, and the county’s lovely transfer tax. On a $250,000 home, that’s $12K–$15K—yeah, it stings.

Breakdown looks roughly like this:

Lender fees: $1,000–$1,500 (application, underwriting, etc.)
Title company & recording: $1,000–$2,000
Pre-paids (taxes, insurance, interest): $3,000–$5,000
Transfer tax: 2% of sale price—split between buyer and seller if you negotiate it that way (many don’t even try).

And because this is Pennsylvania, every township loves its own little quirks—Mountain Top, Wright Township, and Dallas Township each have slightly different property tax escrow amounts and utility setup costs.

PHFA Grant: The Real MVP (If You Qualify)

If you haven’t heard of the PHFA Grant, that’s your first mistake. It’s one of the only true grants left—you don’t pay it back.

Through the Pennsylvania Housing Finance Agency (PHFA), qualified first-time buyers can snag up to $500 in closing cost assistance, or stack it with Keystone Advantage, which can go up to $6,000 or 4% of the home’s price (whichever is less).

To qualify, you’ll need:

A credit score of at least 660
Income under PHFA’s Luzerne County limit (currently around $100K for a family of four)
To use a PHFA-approved lender (many local lenders are—ask before you apply).

Pro tip: Don’t waste time with random online mortgage companies. Most don’t handle PHFA loans, and you’ll end up re-starting the process locally anyway. Go straight to a local lender familiar with these programs—think Fidelity Bank, Community Bank, or CrossCountry Mortgage’s local branch.

Keystone Advantage: Think of It as the Safety Net

The Keystone Advantage Assistance Loan Program isn’t a “handout”—it’s a zero-interest loan for your closing costs or down payment.

It’s repayable over 10 years, but there’s no interest and no monthly payment penalty, meaning you can pay it off early once you get your feet under you.

Let’s say you buy a $220,000 home in Mountain Top. Between appraisal, inspection, and insurance escrow, your closing costs hit about $11K. Keystone Advantage could cover $6K of that, letting you keep cash for actual furniture instead of draining your savings.

If you’re combining this with a PHFA mortgage, you’re stacking smart—not struggling.

How to Actually Get These Programs (Without Losing Your Mind)

Here’s where most buyers screw up: they try to do this after they’re under contract. Too late.

You want to get pre-approved through a PHFA lender before you start home shopping. Ask the lender directly:

“Are you an approved PHFA lender, and can you layer the Keystone Advantage on top?”

If they hesitate, move on. If they know exactly what you’re asking, you’ve found the right one.

And yes, you can still use your own agent (that’s where I come in). Just make sure your lender and agent communicate early so the deal doesn’t die in underwriting over paperwork delays.

Other Hidden Costs First-Time Buyers Miss in Luzerne County

Let’s talk about the stuff no one lists on Zillow:

Home Inspection – $400–$600
Radon Test – $150
Septic/Well Inspection (if rural) – $350–$500
Survey (if required) – $400+
Homeowner’s Insurance – often $1,200–$1,800 annually, paid upfront.

And yes, the appraiser gets paid too—usually $500–$600. You’ll pay that before you even get to closing.

Don’t forget to ask about escrow cushion requirements. In Dallas Township or Mountain Top, property tax escrows can easily hit $5K+ due to school district levies—especially Crestwood or Dallas SD.

How to Negotiate to Save Thousands

Buyers rarely realize: closing costs are negotiable—sort of.

You can’t change government fees, but you can often get the seller to cover a portion through something called a “seller assist.”

FHA loans: up to 6% seller assist allowed
Conventional loans: up to 3% (sometimes 6% depending on down payment)

That means if you’re buying at $250K with an FHA loan, you can ask for $10–15K in help. It’s baked into the price and paid at closing—freeing up cash to cover your PHFA and Keystone Advantage balance.

But here’s the kicker: don’t lowball the seller and ask for full assist. In Luzerne County’s market—especially in spots like Mountain Top or Back Mountain—homes still move fast. Structure it smartly. Example:

“$260K offer with $10K seller assist” often wins over “$250K and no help.”

Bottom Line: Don’t Show Up Broke to Closing

Between down payment, escrow, inspections, and lender fees, most first-time buyers in Luzerne County need $10K–$15K in cash ready to go.

But if you plan ahead, stack the PHFA Grant and Keystone Advantage, and work with a lender who actually knows this terrain, you can cut that number nearly in half.

That’s how smart buyers make homeownership happen without wiping out their savings.

So before you fall in love with that Cape Cod in Mountain Top, get your paperwork, your lender, and your expectations in check. This market rewards the prepared—everyone else gets educated the hard way.