Pennsylvania First-Time Home Buyer Programs and Assistance
Pennsylvania Housing Finance Agency (PHFA) currently lists 5 programs for Pennsylvania buyers, with down payment help up to 5% of the price (about $15,425 on a median-priced home) through Keystone Forgivable in Ten Years Loan Program (K-FIT). Figures below were read from the agency's own pages on September 11, 2026.
Pennsylvania first-time buyer programs open now
Pennsylvania Housing Finance Agency (PHFA) is the state's housing finance agency (homebuyer programs page). It runs 5 down payment or closing-cost assistance programs. Required for the Keystone Home Loan program, with the requirement varying by county; not required for the HFA Preferred (Lo MI) or Keystone Government Loan programs.
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| PHFA Grant source | Grant (no repayment) | $500 | Check | n/a | See program page |
| Keystone Advantage Assistance Loan Program source | Second mortgage | Lesser of 4% of the purchase price/market value or $6,000 (up to $8,000 for buyers using a Participating Employer Assisted Housing (EAH) benefit) | Check | 660 | See program page |
| Keystone Forgivable in Ten Years Loan Program (K-FIT) source | Forgivable second loan | 5% of the lesser of the purchase price or appraised value, no maximum dollar limit | Check | 660 | See program page |
| Keystone Due At Time of Expiration Loan Program (K-DATE) source | Deferred second loan | 8% of the lesser of the purchase price or appraised value for loans of $150,000 or less (subject to availability); 5% for loans of $150,001 or more; no maximum dollar limit | Check | 660 | See program page |
| Access Downpayment and Closing Cost Assistance Program source | Program | Up to $15,000, no-interest loan | Check | n/a | At or below 80% of statewide family median income as determined by HUD |
- PHFA Grant. Terms: Grant assistance, does not require repayment Must pair with: HFA Preferred (Lo MI) loan; may be combined with the Keystone Advantage Assistance Loan Program Program page
- Keystone Advantage Assistance Loan Program. Terms: 0% interest, amortized over a 10-year term, repaid monthly; minimum loan amount $500 Must pair with: HFA Preferred (Lo MI), Keystone Government Loan, or Keystone Home Loan Program page
- Keystone Forgivable in Ten Years Loan Program (K-FIT). Terms: Forgiven annually over 10 years at a rate of 10% per year; minimum loan amount $500 Must pair with: Keystone Home Loan Program page
- Keystone Due At Time of Expiration Loan Program (K-DATE). Terms: 0% interest, 30-year term, no monthly payments; repayment deferred and due upon sale, refinance, or payoff of the first mortgage Must pair with: Keystone Home Loan, Keystone Flex with K-DATE, or Keystone Flex Purchase and Improvement with K-DATE Program page
- Access Downpayment and Closing Cost Assistance Program. Terms: No-interest downpayment and closing cost assistance loan Must pair with: PHFA Access Home Modification Program (required companion program) and a PHFA first mortgage Program page
City and county programs in Pennsylvania
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- City of Philadelphia: Philly First Home. Up to $10,000, or 6% of the purchase price, whichever is less. Forgivable second loan. Income limit: At or below 120% of area median income. First-time buyers only. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Pennsylvania's median-priced home (about $308,500), 3% down is roughly $9,255. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Pennsylvania programs often add income and purchase-price limits, which is another reason to confirm the details with Pennsylvania Housing Finance Agency (PHFA).
Stack a buyer rebate on top in Pennsylvania
Down-payment assistance and a buyer commission rebate are two different things, and in Pennsylvania you can use both. Assistance from Pennsylvania Housing Finance Agency (PHFA) helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $6,170 on a median-priced home), which can cover much of your closing bill.
See Pennsylvania buyer rebates → See Pennsylvania closing costs →
You may qualify for more help in your county
City and county governments in Pennsylvania run their own down payment programs on top of the state ones, and most can be combined with a state loan. Each county page lists the local programs, income limits and local closing costs alongside the state programs:
- Philadelphia County: local help up to $10,000
Frequently asked questions
What first-time home buyer programs are available in Pennsylvania?
Pennsylvania Housing Finance Agency (PHFA) lists 5 programs: PHFA Grant, Keystone Advantage Assistance Loan Program, Keystone Forgivable in Ten Years Loan Program (K-FIT), Keystone Due At Time of Expiration Loan Program (K-DATE), Access Downpayment and Closing Cost Assistance Program. Down payment help runs up to 5% of the price (about $15,425 on a median-priced home). City of Philadelphia also run local down payment programs.
How much down payment assistance can you get in Pennsylvania?
Up to 5% of the price (about $15,425 on a median-priced home) through Keystone Forgivable in Ten Years Loan Program (K-FIT) (forgivable second loan). Other Pennsylvania programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Pennsylvania?
Required for the Keystone Home Loan program, with the requirement varying by county; not required for the HFA Preferred (Lo MI) or Keystone Government Loan programs.
How much down payment do you need in Pennsylvania?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Pennsylvania's median-priced home (about $308,500), 3% is roughly $9,255. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Pennsylvania programs also have income and purchase-price limits, so check with Pennsylvania Housing Finance Agency (PHFA).
Can I combine assistance with a buyer rebate in Pennsylvania?
Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Pennsylvania. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.
Official sources
- Pennsylvania Housing Finance Agency (PHFA)
- PHFA Assistance Loans available with Home Purchase Loans
- City of Philadelphia: Buy your first home
- Consumer Financial Protection Bureau: down payment options and how to prepare
Pennsylvania program details last verified against Pennsylvania Housing Finance Agency (PHFA) on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Pennsylvania Housing Finance Agency (PHFA) and your lender before you rely on them.
See first-time buyer programs in all states