Pennsylvania First-Time Buyer Programs

Pennsylvania Housing Finance Agency (PHFA) Programs:

The Pennsylvania Housing Finance Agency (PHFA) offers several 30-year fixed mortgage options through approved lenders, including Keystone Home Loan, HFA Preferred™ (Lo MI), and Keystone Government Loan. Some PHFA products have county-specific income and purchase-price limits. PHFA also offers down payment and closing cost assistance such as Keystone Advantage, HOMEstead, and K-FIT. Confirm current county limits, eligibility, and availability with a PHFA-approved lender or at PHFA Homebuyers.

Pennsylvania First-Time Homebuyer Mortgage Programs:

Eligibility: Rules vary by product. Some PHFA options target first-time buyers or buyers in designated areas; others are available to repeat buyers.
Offerings: 30-year fixed mortgages through approved lenders with conventional (HFA Preferred), FHA, VA, and USDA/RD-backed choices depending on the program.
Main PHFA Programs:

• Keystone Home Loan: PHFA core first mortgage. County- and tract-based income and purchase-price limits apply; see the PHFA county limits pages for the exact caps. See PHFA Keystone Home Loan.
• HFA Preferred™ (Lo MI): PHFA offers HFA Preferred as a conventional option with reduced mortgage insurance; product availability depends on lender participation and PHFA income limits.
• Keystone Government Loan: FHA/VA/RD-backed PHFA option where the underlying agency rules (FHA/VA/RD) apply; some PHFA assistance can be used with these loans. See PHFA lender pages for details.

Typical Requirements:

• County income and purchase-price limits apply to many PHFA products; check county limits with PHFA or a participating lender.
• Minimum credit score requirements vary by product. PHFA commonly shows a minimum middle FICO of about 660 for many PHIF-insured conventional loans and several assistance loans (for example, Keystone Advantage and K-FIT). Some products and lender overlays may use higher or lower thresholds; confirm current FICO guidance with PHFA or your lender. See PHFA program pages and the PHFA Sellers Guide for program-specific credit rules. (Keystone Advantage, K-FIT, HOMEstead).
• Debt-to-income standards depend on the loan product and lender underwriting overlays.
• PHFA commonly requires homebuyer education for lower-credit borrowers and strongly recommends counseling for all buyers; check the counseling requirement for your chosen product.

Down Payment Assistance (DPA) Options:

Keystone Advantage Assistance Loan: PHFA provides a subordinate, 0% interest assistance loan typically equal to the lesser of 4% of the purchase price or $6,000. The Advantage loan is amortized over a 10-year term with monthly payments. See Keystone Advantage for full rules.
HOMEstead: HOMEstead offers up to $10,000 in no-interest subordinate assistance. HOMEstead funds are forgivable at 20% per year over five years for loans that meet the program schedule; some cities and counties are excluded because they receive their own HOME allocations. See HOMEstead for eligible areas and rules.
K-FIT (Keystone Forgivable in Ten Years): K-FIT provides a forgivable second mortgage equal to 5% of the lesser of purchase price or appraised value (PHFA does not state a separate dollar maximum). The loan has no monthly payments and is forgiven at a rate of 10% per year over 10 years. See K-FIT for details and stacking rules.

Local Programs (Examples):

In addition to PHFA statewide programs, cities and counties may offer their own down payment or closing cost assistance. Funding and eligibility change frequently, so confirm details with the administering agency before relying on a figure.

Philadelphia / Philadelphia County

Philly First Home: The City of Philadelphia offers eligible first-time buyers a grant of up to $10,000 or 6% of the purchase price (whichever is less) for down payment and/or closing costs. Approved homeownership counseling is required. Details at Philly First Home.

Pittsburgh Area / Allegheny County

1st Home Allegheny: Allegheny County provides tiered forgivable assistance amounts, commonly $10,000 or $45,000 depending on household income and program tier and round. The program generally covers county areas outside the City of Pittsburgh and requires homebuyer education and program approval. See the county program page and guidelines: 1st Home Allegheny and program guidelines (published by the county).

Harrisburg Area / Dauphin County

Dauphin County First-Time Homebuyer Program: Dauphin County administers a first-time buyer assistance program. In April 2024 the county approved increasing the maximum assistance to $6,000; confirm current maximums, asset limits, and workshop requirements with Dauphin County before relying on an older figure. See Dauphin County housing help and the county press release: Dauphin County Housing Help and press release (Apr 17, 2024).

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 who meet FHA underwriting rules.

Pennsylvania offers a mix of PHFA mortgage products and local assistance programs. Confirm exact loan terms, assistance amounts, income limits, and county eligibility with a PHFA-approved lender or the local housing agency before you make 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.