Down payment assistance, grants, forgivable loans, and tax credits available to Pennsylvania buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed July 2026·4 programs·6 federal programs
Administered by Pennsylvania Housing Finance Agency
8% of price (homes up to $150,000) or 5% (above $150,000)
Launched May 2026: down payment and closing cost assistance as a 0%, non-amortizing deferred second mortgage, due when you sell, refinance, or pay off the first mortgage.
Income limit
PHFA income limits apply
Minimum credit score660
First-time buyer requiredYes
Special requirements: Must pair with a Keystone Home Loan or K-Flex first mortgage. Homebuyer education required.
Administered by Pennsylvania Housing Finance Agency
Up to $10,000
Second mortgage at 0% interest for down payment assistance, forgiven 20% per year over 5 years. First-come first-served; fund availability varies - confirm with PHFA.
Income limit
Income up to 80% AMI (HOME-funded), varies by county
Minimum credit score620
First-time buyer requiredYes
Special requirements: For purchase of homes in designated areas; homes built before 1978 are generally ineligible. First-time buyers only.
Administered by Pennsylvania Housing Finance Agency
5% of purchase price (no dollar cap)
Assistance for down payment and closing costs: 5% of the lesser of purchase price or appraised value, with no maximum dollar limit. Forgiven 10% per year over 10 years.
Income limit
Income up to 115% of area median income
Minimum credit score660
First-time buyer requiredYes
Special requirements: Must complete homebuyer education. Must use PHFA first mortgage.
Low down payment mortgage with reduced mortgage insurance. Allows income from non-borrower household members. A $2,500 credit for very-low-income borrowers (50% AMI or less) is available through early 2027 when at least one borrower is a first-time buyer.
Do I have to be a first-time homebuyer to qualify?
Most Pennsylvania programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Pennsylvania programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
