City of Pittsburgh First Time Home Buyer Program

Sold sign in front of a houseUnfortunately, the PHOP is temporarily closed. Go to the PHFA page to learn about Pennsylvania's home-buyer programs for First Time Home Buyers and non-First Time Home Buyers, including down payment and/or closing-cost assistance.

The City of Pittsburgh offers low-interest home loans for the purchase of new or existing (move-in ready) houses in the City of Pittsburgh. PHOP stands for Pittsburgh Home Ownership Program. Grant money for down payment and closing costs is available to all qualified home purchasers.

The Pittsburgh Home Ownership Program provides first-time home buyers with low to moderate incomes with fixed-rate, low-interest 30-year mortgage loans. A 3.5 percent down payment is required for the PHOP loan. A fantastic feature of PHOP is that they provide something that others do not: help . . . with your down payment and closing costs. The Urban Redevelopment Authority (URA) offers a down payment and closing-cost subsidy to income-eligible applicants.

PHOP Requirements:
1. You must live in the house as your primary residence.
There are no investors!
2. Single-family homes, duplexes, triplexes, and four-unit buildings are acceptable.
3. Your family income and purchasing price must not exceed the limitations outlined below.
4. To purchase in a program region, you must be a first-time home buyer or have not owned a house in the previous three years.
5. You may be required to participate in a home-buyer education program.
6. THIS IS NOT COMPLETELY FREE MONEY!
You must be qualified for this home loan. In other words, the mortgage firm will verify your income, credit, and employment, and it must be adequate to qualify for the loan.

The City of Pittsburgh has two programs:

Program Area - You must be a First Time Home Buyer or haven’t owned a home in 3 years if you are purchasing a home in the Program Area.

Target Area - You DO NOT NEED to be a first-time home-buyer if you are purchasing in the Target Area. Where are the Program and Target areas?

Program Area
interest-rate The interest-rate is a bit higher than other programs, however, the closing-cost assistance grant is exceptional.
Term 30-years
Minimum Down Payment 3.5% - FHA guidelines
Mortgage Origination Fee The loan amount is subject to 1 1/2 points, which are divided evenly between the buyer and seller. Alternatively, the seller may pay the points as a "seller help."
Eligible Areas City of Pittsburgh

Income Limits PROGRAM AREA

$63,000 per household - 1 - 2 occupants
$72,450 per household -  3 or more occupants
Mortgage Limit 1  Unit -  $216,000
2 Units - $261,701
3 Units - $316,327
4-units - $393,120

Target Area
Interest-rate The interest-rate is a bit higher than other programs, however, the closing-cost assistance grant is exceptional.
Term 30-years
Minimum Down Payment 3.5% - FHA guidelines
Mortgage Origination Fee There are 1 1/2 points on the loan amount that is split equally between the buyer and the seller. Or, the seller can pay the points as a “seller assist”.
Eligible Areas City of Pittsburgh
Income Limits TARGET AREA:
$75,600 per household (1-2 persons)
$88,200 per household (3 or more persons)
Mortgage Limit 1 Unit -   $264,000
2 Units - $319,857 3 Units - $386,621
4-units - $480,480

Closing-Cost and Down Payment Assistance

Participants in the First Time Home Buyer Program may be eligible for up to $3,000 in closing-cost and down payment assistance. Borrowers must satisfy all program requirements, and their family income must be at or below 80% of the local median income.

Is your household income . . .
1 Occupant - $35,300
2 Occupant - $40,350
3 Occupant - $45,400
4 Occupant - $50,400
5 Occupant - $54,450

Borrowers must complete a HUD-approved home-buyer education course and obtain confirmation of completion. Borrowers must submit a certified copy of their most recent tax returns.

Credit counseling & First Time Home Buyer Classes in Allegheny County PA