Pennsylvania Housing Finance Agency (PHFA) Programs:
Updated April 2026The Pennsylvania Housing Finance Agency (PHFA) offers several 30-year fixed-rate home purchase options through approved lenders, including Keystone Home Loan, HFA Preferred™ (Lo MI), and Keystone Government Loan. Some programs have county-specific income and purchase price limits, while others do not. PHFA also offers down payment and closing cost assistance through programs such as Keystone Advantage, HOMEstead, and K-FIT. Homebuyer education is available through PHFA-approved providers and may be required depending on the loan program and borrower profile. Verify current rates, county income/purchase limits, targeted areas, and assistance availability at phfa.org/homebuyers or with a PHFA-approved lender.
Pennsylvania First-Time Homebuyer Mortgage Programs:
Eligibility: Program rules vary by loan type. Some PHFA options are designed for first-time buyers or buyers in targeted areas, while others are also available to repeat buyers.
Offerings: 30-year fixed-rate mortgages through approved lenders, with conventional, FHA, VA, and USDA/RD options depending on program type.
Main PHFA Programs:
- Keystone Home Loan: For eligible buyers meeting county-specific income and purchase price limits; first-time buyer rules may apply depending on county/target area.
- HFA Preferred™ (Lo MI): Conventional 30-year fixed loan with income limits, but no PHFA first-time buyer requirement and no PHFA purchase price limit.
- Keystone Government Loan: FHA, VA, and USDA/RD-backed option with no PHFA-specific income or purchase price limits, though agency loan rules still apply.
Typical Requirements:
- Income limits may apply depending on the specific PHFA program and county.
- Purchase price limits apply to some PHFA programs, including Keystone Home Loan.
- Minimum credit score requirements vary by loan and assistance type.
- For Keystone Home Loan conventional PHIF-insured loans, PHFA notes a 660 minimum credit score.
- For borrowers using K-FIT assistance, PHFA requires a minimum 660 credit score.
- Debt-to-income standards vary by product and lender underwriting.
- Homebuyer education/counseling may be required for some borrowers and is strongly encouraged by PHFA.
Down Payment Assistance (DPA) Options:
Keystone Advantage Assistance Loan: Up to 4% of the lesser of the purchase price or market value, or $6,000, whichever is less. This is a 0% interest second loan repaid monthly over 10 years.
HOMEstead: Up to $10,000 in no-interest assistance, generally forgiven at 20% per year over 5 years. Available only in eligible areas and subject to additional program/property rules.
K-FIT (Keystone Forgivable in Ten Years): 5% of the lesser of the purchase price or appraised value, with no maximum dollar cap stated by PHFA. Forgiven annually over 10 years and available with Keystone Home Loan.
Local Programs (Examples):
In addition to PHFA statewide programs, some Pennsylvania cities and counties offer separate down payment or closing cost assistance. Funding is limited and program terms can change.
Philadelphia / Philadelphia County
Philly First Home: The City of Philadelphia states eligible first-time buyers may receive up to $10,000, or 6% of the purchase price, whichever is less, for down payment and/or closing costs. The property must be in Philadelphia, and approved homeownership counseling is required before signing the agreement of sale.
Pittsburgh Area / Allegheny County
1st Home Allegheny: Allegheny County says eligible first-time homebuyers may qualify for assistance of $10,000 or $45,000 depending on household income. The program applies in Allegheny County excluding the City of Pittsburgh, requires homebuyer education, and uses a forgivable subordinate loan structure.
Harrisburg Area / Dauphin County
Dauphin County First-Time Homebuyer Program: Dauphin County offers down payment assistance for eligible first-time homebuyers in Dauphin County through its First Time Homebuyer program. Buyers should confirm current assistance amounts, income limits, counseling rules, and availability directly with Dauphin County before relying on prior figures.
Additional Information:
- USDA/RD Loans: May allow 0% down in eligible rural areas; USDA income and property rules apply.
- VA Loans: May allow 0% down for eligible veterans, service members, and certain surviving spouses.
- FHA Loans: Low down payment option, commonly 3.5% for eligible borrowers meeting FHA requirements.
Pennsylvania offers a mix of statewide PHFA mortgage products and local assistance programs, so buyers should confirm the exact loan, assistance amount, and county rules with a PHFA-approved lender or the local housing agency before making an offer. Seeking Agents® connects you with Pennsylvania agents who understand first-time buyer programs and can help you compare options—free for buyers and sellers.
View First-Time Home Buyer Programs for: Rhode Island
Frequently Asked Questions
What first-time home buyer assistance is available in Pennsylvania?
Pennsylvania buyers may be eligible for statewide assistance, local housing programs, and federal loan options such as FHA, VA, and USDA loans. Program terms vary based on income, region, and available funding.
What first-time home buyer assistance is available in Pennsylvania?
Pennsylvania buyers may be eligible for statewide assistance, local housing programs, and federal loan options such as FHA, VA, and USDA loans. Program terms vary based on income, region, and available funding.
Who qualifies as a first-time home buyer in Pennsylvania?
Most Pennsylvania programs define a first-time buyer as someone who has not owned a primary residence during the last three years. Some targeted programs may allow additional flexibility.
Who qualifies as a first-time home buyer in Pennsylvania?
Most Pennsylvania programs define a first-time buyer as someone who has not owned a primary residence during the last three years. Some targeted programs may allow additional flexibility.
Can Pennsylvania buyers get help with down payment and closing costs?
Yes, some Pennsylvania assistance programs help with both down payment and closing costs. The support may come as grants, second mortgages, or deferred repayment assistance depending on the program.
Can Pennsylvania buyers get help with down payment and closing costs?
Yes, some Pennsylvania assistance programs help with both down payment and closing costs. The support may come as grants, second mortgages, or deferred repayment assistance depending on the program.
Do Pennsylvania programs require homebuyer education?
Many Pennsylvania first-time buyer programs require a homebuyer education course before closing. This requirement is common and helps borrowers understand the costs and responsibilities of buying a home.
Do Pennsylvania programs require homebuyer education?
Many Pennsylvania first-time buyer programs require a homebuyer education course before closing. This requirement is common and helps borrowers understand the costs and responsibilities of buying a home.
Can a Pennsylvania real estate agent help with buyer assistance programs?
Yes. A Pennsylvania agent who understands first-time buyer financing can help you narrow your search, coordinate with lenders, and move through the process more confidently.
Can a Pennsylvania real estate agent help with buyer assistance programs?
Yes. A Pennsylvania agent who understands first-time buyer financing can help you narrow your search, coordinate with lenders, and move through the process more confidently.