PA First Time Homebuyer

Buying your first home in Pennsylvania doesn't have to drain your savings. Get up to 5% down payment assistance, free counseling, and expert guidance from PHFA approved programs.

Why Homebuyers Choose PHFA Programs

The Pennsylvania Housing Finance Agency (PHFA) helps first-time homebuyers achieve homeownership through grants and assistance programs specifically designed for you. Here's what you get:

Down payment and closing cost assistance up to 5% of purchase price
Forgivable loans that disappear if you stay in your home for 10 years
Free one-on-one counseling from HUD certified advisors
Affordable mortgage programs with reduced interest rates
Free financial education and budgeting help
No cost to apply for any PHFA program

PHFA Programs That Help You

Keystone Advantage

Interest-free loan for down payment and closing costs. Spread payments over 10 years. Available if your credit score is 660 or higher.

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K-FIT (Forgivable)

Second mortgage loan up to 5% of purchase price. Loan is forgiven over 10 years if you stay in the home. No repayment if you don't sell or refinance.

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Homebuyer Counseling

Free education courses on home buying, credit repair, budgeting, and avoiding predatory lending. In-person or online options available.

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Financial Education

Four-workshop series on budgeting, saving, credit, and taxes. Free one-on-one coaching available after completion.

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Housing Stability Help

Facing eviction, foreclosure, or job loss? Free counseling from HUD certified specialists can help you keep your home.

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Mortgage Credit Certificate

Federal tax credit that reduces your annual income tax. Save thousands over the life of your loan.

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Quick Eligibility Check

Most first-time homebuyers in Pennsylvania qualify for PHFA assistance. Check if you meet the basic requirements:

Income: Varies by program and family size, but most programs serve moderate to low-income buyers.

Credit Score: Programs available starting at 620+ credit score. Lower scores may require counseling.

First-Time Buyer: Most programs require you haven't owned a home in the past 3 years.

Pennsylvania Resident: You must buy your home in Pennsylvania and use it as your primary residence.

Work with a Lender: Use a PHFA approved lender or connect with one during the process.

Not sure if you qualify? Free counseling from PHFA can answer all your questions and help you find the right program. Schedule your free session today.

How to Get Started

Get Free Counseling: Meet with a PHFA approved counselor in your county. They review your finances and recommend the best programs for you.
Take Homebuyer Education: Complete the required course (online or in-person). You learn about credit, mortgages, and home buying.
Improve Your Credit (if needed): Your counselor helps you build credit if needed. Many programs work with lower scores.
Find a Home and a Lender: Work with a real estate agent and connect with a PHFA approved mortgage lender.
Apply for Programs: Your lender helps you apply for Keystone Advantage, K-FIT, or other assistance programs.
Close on Your Home: With down payment assistance in place, you close on your new home.

Real Stories from PA Homebuyers

"I didn't think I could afford a down payment working as a teacher. PHFA's K-FIT program gave me 5% down payment help, and the loan was forgiven after 10 years of living in my home. I'm now a homeowner."

Sarah M., Pittsburgh

"The counseling helped me understand my credit report and raise my score 50 points in six months. Now I qualify for better interest rates. The free help made all the difference."

Marcus T., Philadelphia

"As a single mom, I thought homeownership was impossible. The counselor showed me I qualified for programs I didn't know existed. My daughter now has her own room in our house."

Emily R., Harrisburg

What Makes PHFA Different

A Government Agency Built to Help You

PHFA is a state agency created by Pennsylvania to help residents build wealth through homeownership. We don't profit from your loan. We exist to make homeownership possible.

No application fees. No hidden costs. No pressure. All counseling and education are completely free.

Frequently Asked Questions

How much down payment help can I get?

K-FIT provides up to 5% of your purchase price as a forgivable loan. Keystone Advantage provides interest-free loans for down payment and closing costs. The exact amount depends on your income and the purchase price of your home. A counselor can calculate your specific benefit.

Do I have to pay back the down payment assistance?

With K-FIT, the loan is forgiven after 10 years if you stay in the home. Keystone Advantage is an interest-free loan you repay over 10 years. If you sell or refinance before the loan term ends, you repay the remaining balance.

What if my credit score is low?

PHFA programs work with credit scores as low as 620. If your score is below 680, you're required to complete homebuyer education and counseling, which helps you improve your score and prepares you for homeownership.

Can I use PHFA programs with any lender?

You must work with a PHFA approved lender. Your real estate agent can help you find one, or PHFA's website lists all participating lenders by county.

How long does the whole process take?

From first counseling session to closing usually takes 2 to 6 months, depending on your situation and how quickly you find a home. Your counselor and lender will guide you through the timeline.

Ready to Become a Homeowner?

The first step is always free. Talk to a PHFA counselor about your goals and options.

Schedule Free Counseling