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 September 2026·5 programs·6 federal programs
Administered by Pennsylvania Housing Finance Agency
Up to $15,000
No-interest second mortgage of up to $15,000 for down payment and closing costs for buyers who are also using PHFA's Access Home Modification Program (a $1,000-$10,000 zero-interest loan for accessibility modifications for a household member with a disability). Repayment is not required as long as the buyer occupies the home as a principal residence.
Income limit
Household income may not exceed 80% of the statewide median family income.
First-time buyer requiredNo
Special requirements: Only available with the Access Home Modification Program (documentation of a disability for a household member required); paired with a Keystone Home or Keystone Government first mortgage through a PHFA participating lender.
View official program page
Apply through a PHFA participating lender when applying for a Keystone Home or Keystone Government loan with the Access Home Modification Program.Verified September 2026
K-DATE (Keystone Due At Time of Expiration)
Administered by Pennsylvania Housing Finance Agency
8% of price (homes up to $150,000) or 5% (above $150,000)
Second mortgage of 8% of the lesser of purchase price or appraised value for loans of $150,000 or less, or 5% for loans above $150,000, with no maximum dollar cap; 0% interest, 30-year term, no monthly payments; due on sale, refinance or payoff of the first mortgage. Available with Keystone Home Loan, Keystone Flex with K-DATE and Keystone Flex Purchase & Improvement with K-DATE. 660 minimum FICO; liquid assets after closing may not exceed $50,000.
Income limit
Keystone Flex income limit: qualifying income up to $212,000 in all counties, purchase price up to $730,600, effective for reservations on or after 7/1/2026. When paired with a Keystone Home Loan, Keystone Home county income/purchase price limits (Appendix A) apply instead.
Minimum credit score660
First-time buyer requiredNo
Special requirements: Must pair with a Keystone Home Loan or K-Flex first mortgage. Homebuyer education required.
Administered by Pennsylvania Housing Finance Agency
5% of purchase price (no dollar cap)
Second mortgage of 5% of the lesser of purchase price or appraised value with no maximum dollar limit (minimum $500), forgiven at 10% per year over ten years. Available with Keystone Home Loan and, per PHFA's Home Purchase Loans page, Keystone Flex with K-FIT (no first-time buyer requirement) and Keystone Flex Purchase & Improvement with K-FIT. 660 minimum FICO; liquid assets after closing may not exceed $50,000; cannot be combined with other PHFA assistance except Access Home Modification.
Income limit
Keystone Flex with K-FIT: qualifying income up to $212,000 and purchase price up to $730,600 in all counties (effective 7/1/2026), no first-time buyer requirement. Keystone Home Loan with K-FIT: county income/purchase price limits (e.g., Philadelphia $147,200 for 1-2 persons / $171,700 for 3+, purchase price $730,600; Allegheny $110,400 / $126,900, $523,000) and first-time buyer required unless targeted area or veteran.
Minimum credit score660
First-time buyer requiredNo
Special requirements: Must complete homebuyer education. Must use PHFA first mortgage.
Administered by Philadelphia Housing Development Corporation (PHDC) / City of Philadelphia Division of Housing and Community Development
Up to $10,000 or 6% of purchase price, whichever is lower
Homebuyer assistance of up to $10,000 (or 6% of the purchase price, whichever is lower) to reduce principal, cover down payment and closing costs for first-time buyers purchasing a single-family home or duplex in Philadelphia (condominiums are not eligible). City materials describe it as a grant secured by a lien: per phila.gov the lien becomes due if the home is sold, leased or cash-out refinanced within the first 15 years and is forgiven after 15 years of ownership.
Income limit
$85,900 (1-2 person) / $122,700 (3+)
First-time buyer requiredYes
Special requirements: Must complete free one-on-one homeownership counseling through a City-funded housing counseling agency before signing an Agreement of Sale; first-time buyer or no home ownership in the past three years; single-family or duplex in Philadelphia.
View official program page
Contact a City-funded housing counseling agency (list on phdcphila.org) with total annual family income, income sources and household size; the agency submit...Verified September 2026
Keystone Advantage Assistance
Administered by Pennsylvania Housing Finance Agency
Lesser of 4% of price or $6,000
Second mortgage of up to 4% of purchase price or market value or $6,000, whichever is less (minimum $500), at 0% interest amortized over 10 years with monthly payments. Available with HFA Preferred (Lo MI), Keystone Government and Keystone Home first mortgages; 660 minimum FICO; assistance limited to the minimum required down payment and/or closing costs.
Income limit
Income limits follow the paired first mortgage (HFA Preferred county limits, Keystone Government agency limits, or Keystone Home Loan county limits such as Philadelphia $147,200/$171,700 effective 7/1/2026). Liquid assets after closing may not exceed $50,000. Up to $8,000 for buyers whose employer participates in PHFA's Employer Assisted Housing program.
Minimum credit score660
First-time buyer requiredNo
Special requirements: Must use with PHFA first mortgage. Homebuyer education required.
3% minimum down payment with no minimum borrower contribution; income at or below 80% AMI (2026 AMIs effective June 13, 2026); reduced, cancellable mortgage insurance; $2,500 credit for very low-income first-time buyers on loans purchased through February 28, 2027.
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.
