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Down Payment Assistance Programs in Pennsylvania
Buying a home in Pennsylvania doesn’t have to mean draining your savings. Pennsylvania offers some of the most generous and flexible down payment assistance (DPA) programs in the country—including grants, forgivable loans, and low-interest second mortgages that can cover your down payment, closing costs, or both.
Whether you're a first-time buyer or purchasing again after years of renting, there are dozens of local, county, and state-level DPA options that may help you get the keys to your new home sooner.
Our Most-Used State Programs (via PHFA):
The Pennsylvania Housing Finance Agency (PHFA) administers the most widely used down payment and closing cost assistance in the state. These programs are often paired with PHFA first mortgages and can sometimes be combined with certain local grants.
K-FIT: Keystone Forgivable in Ten Years Loan Program
Assistance amount: Up to 5% of the home’s purchase price or appraised value (whichever is less)
Forgiveness: 10% forgiven each year over 10 years until fully forgiven
No monthly payment required
Can be used for both down payment and closing costs
Keystone Advantage Assistance Loan
0% interest second mortgage, repayable over 10 years
Assistance amount: Up to 4% of the purchase price/appraised value or $6,000 (whichever is less)
Funds can be used toward down payment and/or closing costs
Minimum credit score: 660
HOMEstead Down Payment & Closing Cost Assistance
No-interest second mortgage up to $10,000
Forgiven at 20% per year over 5 years
Available in certain targeted areas of the state
Can be layered with other PHFA first mortgage products
Featured Local & Regional Programs:
In addition to PHFA programs, many Pennsylvania counties and cities offer their own assistance.
Examples include:
Philadelphia — Philly First Home: Grant up to $10,000 or 6% of the purchase price (whichever is less) with required homebuyer counseling.
Allegheny County — 1st Home Program: Forgivable assistance for eligible buyers purchasing outside Pittsburgh city limits.
City of Pittsburgh — URA Housing Opportunity Fund DPA: Assistance for first-time buyers purchasing within Pittsburgh city limits.
Bucks County — First-Time Homebuyers Program: Zero-interest, deferred-payment loan for eligible households.
It might be easier to get pre-approved for a mortgage than you ever imagined. We believe in making it as easy as possible for everyone to purchase their own home. Click here now to get started, it only takes a few minutes online.
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We’ll review your full scenario and help you determine whether a standard or alternative documentation loan is the best fit. There’s no obligation, and you’ll walk away with a clear plan to move forward.
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PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. The content in this website has not been approved, reviewed, sponsored or endorsed by any department or government agency.
