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, FHA, VA, and USDA/RD-backed choices depending on the program.
Main PHFA Programs:

• Keystone Home Loan: For eligible buyers who meet county income and purchase price limits; targeted-area rules may apply.
• HFA Preferred™ (Lo MI): Conventional 30-year fixed option with PHFA income limits for some products but no separate PHFA first-time buyer requirement for this product.
• Keystone Government Loan: FHA, VA, and USDA/RD-backed option where agency loan rules (FHA/VA/RD) apply rather than PHFA purchase price caps.

Typical Requirements:

• County income and purchase price limits apply to some PHFA products; check county limits with PHFA or a participating lender.
• Minimum credit score requirements vary by program and assistance product. PHFA documents commonly show a 660 minimum for PHIF insured conventional loans and many assistance loans such as Keystone Advantage and K-FIT. HOMEstead may allow lower minimums in some cases; always check the PHFA program page for the product you plan to use. See PHFA program pages for current FICO guidance. (Keystone Advantage, K-FIT, HOMEstead).
• Debt-to-income standards depend on the loan product and lender underwriting overlays.
• PHFA strongly recommends homebuyer education; some borrowers (for example, those with lower credit scores) are required to complete counseling through a PHFA-approved provider.

Down Payment Assistance (DPA) Options:

Keystone Advantage Assistance Loan: Typically up to 4% of the purchase price or appraised value, capped at $6,000, as a 0% interest subordinate loan repaid monthly over 10 years. See Keystone Advantage for limits and eligibility.
HOMEstead: Up to $10,000 in no-interest subordinate assistance. HOMEstead loans are forgivable at 20% per year over five years and are not available in all jurisdictions (PHFA excludes some cities and counties that receive their own HOME Program allocations). See HOMEstead for eligible areas and rules.
K-FIT (Keystone Forgivable in Ten Years): Provides 5% of the lesser of purchase price or appraised value with no PHFA maximum dollar cap stated by PHFA; the loan is forgiven over 10 years. Learn more at K-FIT.

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. The program is available in Allegheny County excluding the City of Pittsburgh and requires homebuyer education and administrative approval. See the county program page and program guidelines for income tiers and current availability: 1st Home Allegheny and the program guidelines (May 2025).

Harrisburg Area / Dauphin County

Dauphin County First-Time Homebuyer Program: Dauphin County operates a first-time buyer assistance program administered through the county community and economic development office. County materials and a 2024 county press release show the maximum assistance was increased from $3,000 to up to $6,000, but some county web pages still show older language. Buyers should confirm current maximums, asset limits, and workshop requirements with Dauphin County before relying on a prior figure. See Dauphin County housing help and the county press release: Dauphin County Housing Help and press release.

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.