First-Time Home Buyer Programs in Pennsylvania

Pennsylvania Housing Finance Agency (PHFA) Programs:

PHFA Keystone Home Loan:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas; exceptions for veterans or certain counties.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $126,500 in Allegheny County as of 2025).
• Minimum credit score of 620.
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

Keystone Advantage Assistance Loan:

Benefits: Up to 4% of purchase price or $6,000 (whichever is less) as a 0% interest second loan, repaid monthly over 10 years.
Eligibility: Requires PHFA first mortgage; credit score minimum 660; cannot be combined with most other PHFA assistance programs—eligible with Keystone Home Loan, Keystone Government, or HFA Preferred™ loans.

Keystone Forgivable in Ten Years Loan (K‑FIT):

Description: Offers up to 5% of purchase price or appraised value as a forgivable second loan—20% forgiven annually over 10 years.
Requirements: Requires PHFA first mortgage; minimum credit score 660; cannot be combined with most other assistance; eligible with Keystone Home or Keystone Flex mortgages.

HOMEstead Downpayment and Closing Cost Assistance:

Description: Up to $10,000 as a zero-interest second mortgage; forgiven 20% per year over 5 years.
Requirements: Pair with Keystone Home Loan; some areas excluded; minimum $1,000 loan.

Local Programs:

Philadelphia

Philly First Home: Offers up to $10,000 as a non‑repayable grant for down payment and closing costs; income ≤ 120% AMI; counseling required.

Pittsburgh

Pittsburgh Down Payment Assistance: Up to $15,000 as a deferred 0%‑interest loan; income ≤ 80% AMI.

Harrisburg

Harrisburg First-Time Homebuyer Program: Up to $12,000 as a deferred 0%‑interest loan; income ≤ 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Federal tax credit up to 50% of annual mortgage interest (max $2,000/year); fee applies; combinable with PHFA loans.
• FHA, USDA & VA Loans: Standard federal options—FHA (3.5% down), USDA/VA zero‑down, credit scores as low as 580.