Pennsylvania Down Payment Assistance
Pennsylvania Down Payment Assistance Programs
A guide to current down payment assistance options in Pennsylvania, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Pennsylvania homebuyers.
Pennsylvania Housing Finance Agency
Pennsylvania Housing Finance Agency (PHFA)
www.phfa.org1-855-827-3466
PHFA administers the primary DPA programs for Pennsylvania. Program details below are current as of April 23, 2026 - confirm current terms directly with PHFA before applying.
Statewide DPA Programs in Pennsylvania
Keystone Home Loan
PHFA
30-year fixed-rate first mortgage for first-time homebuyers (or non-FTHBs buying in a Targeted Area, and discharged veterans).
Paired with: Conventional, FHA, VA, USDA
- First-time homebuyer: Required
- Primary residence only
- Income: County-based PHFA Keystone Home Loan income and purchase price limits.
- Homebuyer education required
First-time homebuyer requirement waived in Targeted counties/areas and for discharged veterans.
Source: www.phfa.org
HFA Preferred
PHFA
30-year fixed-rate conventional first mortgage with reduced mortgage insurance. No first-time homebuyer requirement and no purchase price limits.
Paired with: Conventional
- First-time homebuyer: Not required
- Primary residence only
- Income: HFA Preferred income limits apply.
- Homebuyer education required
HFA Preferred borrowers may also receive a $500 PHFA Grant toward down payment or closing costs.
Source: www.phfa.org
Keystone Government Loan (K-Gov)
PHFA
30-year fixed-rate first mortgage for FHA, VA, and USDA-RD loans. No first-time homebuyer requirement.
Paired with: FHA, VA, USDA
- First-time homebuyer: Not required
- Primary residence only
- Homebuyer education required
Source: www.phfa.org
Keystone Advantage Assistance Loan
PHFA
0% interest second mortgage for down payment and closing cost assistance. Must be paired with a PHFA first mortgage (Keystone Home Loan, HFA Preferred, or Keystone Government).
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Homebuyer education required
Cannot be combined with other PHFA DPA programs except the Access Modification Loan Program.
Source: www.phfa.org
Keystone Forgivable in Ten Years Loan Program (K-FIT)
PHFA
Second mortgage of up to 5% of the purchase price or appraised value (no maximum dollar cap). No interest and no payments; forgiven 10% per year over 10 years.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Minimum FICO: 660
- Homebuyer education required
Liquid assets after closing must not exceed $50,000. Must be paired with a PHFA first mortgage.
Source: www.phfa.org
HOMEstead Downpayment and Closing Cost Assistance
PHFA
Up to $10,000 as a no-interest second mortgage for down payment and closing costs. Forgiven 20% per year over 5 years for loans closed on or after January 1, 2007.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Income: HOMEstead income limits apply (based on HUD HOME program guidelines).
- Homebuyer education required
Property must meet HUD HOME Program Housing Quality Standards and lead-safe requirements. Not available in all counties.
Source: www.phfa.org
Major City & County Programs in Pennsylvania
Philly First Home Program
Philadelphia Division of Housing and Community Development (DHCD) / Philadelphia Housing Development Corporation (PHDC) · City of Philadelphia, PA
Up to $10,000 or 6% of the purchase price, whichever is less, toward down payment and/or closing costs.
First-time homebuyer (no ownership in past 3 years). Property must be a single-family home or duplex in Philadelphia (no condominiums). One-on-one housing counseling with a City-funded counseling agency is required before signing an Agreement of Sale. Funding is first-come, first-served and opens annually.
Source: www.phila.gov
Pennsylvania Notes for Homebuyers
- All PHFA programs require homebuyer education.
- Pennsylvania charges a state and local realty transfer tax (typically split between buyer and seller); confirm your local rate with your closing agent.
2026 Loan Limits in Pennsylvania
Conforming (Conventional)
$806,500 baseline
Some Pennsylvania counties qualify as high-cost, with limits up to $1,209,750.
FHA
$524,225 floor
Higher-cost Pennsylvania counties can reach the FHA ceiling of $1,209,750.
Live DPA Pricing for Pennsylvania
Pricing below is sourced live from hundreds of wholesale lenders for a Pennsylvania scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
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