Buying your first home in Pennsylvania? You’re not alone, and you don’t have to do it without help. Between statewide loan programs, down payment assistance, and city-specific grants, there’s more support available than most buyers realize. We put together this guide to walk you through the major options, so you can figure out what fits your situation before you ever sit down with a lender.
Pennsylvania Housing Finance Agency (PHFA) Programs
The Pennsylvania Housing Finance Agency (PHFA) is the state’s primary resource for homebuyer assistance. PHFA works through a network of participating lenders. Including Perry Johnson Mortgage Company, which can offer 30-year, fixed-rate mortgages paired with down payment and closing cost help. Here’s a look at the core programs.
Keystone Home Loan Program
The Keystone Home Loan is designed for first-time buyers, though veterans and buyers in targeted counties or neighborhoods can qualify even if they’ve owned a home before.
To qualify:
- You (and any other adults moving in within 12 months) haven’t held title to a primary residence in the past three years, unless you’re a veteran or buying in a targeted area
- Household income falls within PHFA’s published limits for your county
- Purchase price stays within PHFA’s limits
- Minimum credit score of 660 for conventional loans insured by the Pennsylvania Housing Insurance Fund; FHA and VA/RD options are also available
HFA Preferred™ (Lo MI)
The HFA Preferred (Lo MI) loan is a conventional 30-year fixed-rate mortgage with reduced mortgage insurance costs for borrowers putting down less than 20%. There’s no first-time homebuyer requirement, which makes it a strong fit for repeat buyers too.
To qualify:
- Household income within program limits for your county
- Minimum $1,000 contribution from your own funds
- Pre-closing homebuyer education, required for all buyers
Down Payment and Closing Cost Assistance
Most PHFA first mortgages can be paired with a second layer of help:
- Keystone Advantage Assistance Loan – Up to 4% of the purchase price (capped at $6,000) as a 0% interest second mortgage, repaid over 10 years
- Keystone Forgivable in Ten Years Loan (K-FIT) – 5% of the purchase price or appraised value, forgiven at 10% a year over a decade
- PHFA Grant – $500 toward down payment and closing costs, no repayment required, when paired with an HFA Preferred loan
A PHFA-approved lender or housing counselor can help you figure out which combination makes the most sense for your budget.
Veteran Homebuyer Benefits
Veterans and active-duty service members have additional mortgage options worth exploring, including loans that require no down payment in most cases. Rather than walk through the details here, visit our VA Loan page for the full picture of eligibility, benefits, and how to get started with your Certificate of Eligibility.
City & County Assistance Programs
On top of PHFA’s statewide programs, several Pennsylvania cities and counties offer their own down payment and closing cost assistance. These are worth checking regardless of which PHFA loan you’re using.
| City / County | Program | What It Offers |
| Philadelphia | Philly First Home | Up to $10,000 or 6% of purchase price (whichever is less), forgivable loan; requires city-funded homeownership counseling |
| Pittsburgh | URA Down Payment & Closing Cost Assistance | $5,000–$7,500 depending on income tier, forgiven over 5–10 years |
| Bethlehem | Bethlehem Homebuyer Assistance Program (BHAP) | Up to 10% of purchase price plus closing costs, forgivable over 10 years |
| Northampton County | First-Time Homebuyer Program | Up to $10,000 as a forgivable second mortgage |
To qualify for most city and county programs:
- You’re a first-time buyer, or haven’t owned a home in the past three years
- Household income falls within local limits (often tied to area median income)
- You complete a HUD-approved homebuyer education course
- You’re purchasing in the program’s specific city or county
Availability and funding for these programs can shift, so we always recommend confirming current details with the local housing agency before you get too far into the process.
Where to Start
Ready to see what you qualify for? The best first step is a conversation with a lender who knows these programs inside and out. We’ll help you sort through your options, from your PHFA loan type to any down payment assistance you might be eligible for, so you can move forward with confidence.
Give us a call at 1-800-800-0450 or reach out online, and let’s talk about what homeownership in Pennsylvania can look like for you.