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The City of Philadelphia's First Home Program provides up to $10,000 in homebuyer grants to income-qualified first-time homebuyers without requiring repayment. With free homebuyer counseling and income limits up to 100% of area median income, the program makes homeownership achievable for working families throughout Philadelphia.

Philadelphia County: First-Time Home Buyer

Happy Philly home buyers moving boxesThe City of Philadelphia's Philly First Home Program helps first-time homebuyers achieve homeownership by providing up to $10,000 in homebuyer assistance grants. By requiring free homebuyer counseling before purchase and offering substantial grant assistance based on income, the program ensures buyers are prepared and financially supported when making one of life's biggest investments.

Program Overview

The Philly First Home Program is administered by the Philadelphia Housing Development Corporation (PHDC) and the City of Philadelphia's Division of Housing and Community Development (DHCD). This program provides direct grant assistance to income-qualified first-time homebuyers purchasing single-family homes or duplexes in Philadelphia. Unlike loan-based programs, the assistance provided through Philly First Home is a grant, meaning it does not require repayment as long as you maintain the property as your primary residence and meet program requirements.

Contact Information:
Philadelphia Housing Development Corporation (PHDC)
1234 Market Street, 17th Floor
Philadelphia, PA 19107
Phone: 215-448-3000 (Main) or 215-686-9749 (Housing)
TTY: 215-448-2184
Email: info@phdc.phila.gov
Website: phdcphila.org/philly-first-home/

Available Assistance

Grant Amounts

The Philly First Home Program provides homebuyer assistance grants of up to $10,000, or 6% of the home's purchase price, whichever is lower. This means your grant amount is calculated based on the purchase price of the property you are buying. For properties with lower purchase prices, the 6% calculation may result in assistance less than $10,000. For higher-priced properties, the maximum grant is capped at $10,000.

The grant is intended to help you reduce the principal balance on your mortgage, cover down payment requirements, and pay closing costs associated with your home purchase. The specific way the grant is applied (principal reduction versus down payment/closing cost assistance) can be discussed with your housing counselor and lender.

Grant vs. Loan Structure

Unlike programs that provide loans or forgivable mortgages, the Philly First Home grant is a true grant. Provided you maintain the home as your primary residence and meet program requirements, you will not be required to repay this assistance. If the property remains your primary residence and you do not sell, transfer, lease, rent, or abandon the home during a specified affordability period, the grant is yours to keep. This makes Philly First Home particularly valuable for buyers seeking assistance without long-term debt obligations.

Eligibility Requirements

To qualify for the Philly First Home Program, you must meet all of the following eligibility criteria:

First-Time Homebuyer Status

You must be a first-time homebuyer, which is defined as someone who has not owned a home in the past three years. This definition is broader than some other programs and allows individuals who owned a home more than three years ago to qualify, as well as those who have never owned before. If you are returning to homeownership after an extended period of renting, you may qualify under this definition.

Income Eligibility

Your household income must not exceed the maximum income limit for your household size. Income is calculated using gross income (before taxes and deductions) for all family members who will live in the home. The income limits are based on area median income (AMI) and are updated periodically to reflect changes in the area's economic conditions.

Income Limits by Household Size (Current)

Family Size Maximum Annual Household Income
1 person $83,600
2 people $95,550
3 people $107,500
4 people $119,400
5 people $129,000
6 people $138,550
7 people $148,100
8 people $157,650

Note: Income limits may be updated periodically. Contact PHDC or your housing counselor to confirm current limits for your household size.

Homebuyer Counseling Requirement

You must complete one-on-one homebuyer counseling through a City-funded housing counseling agency. This counseling must be completed BEFORE you sign an Agreement of Sale with the seller. The timing of this requirement is critical—you cannot proceed with making an offer or signing a purchase agreement until your counseling is complete and your counselor confirms completion.

Homebuyer counseling is provided free of charge and typically takes place in one-on-one sessions with a certified housing counselor. The counselor will help prepare you for homeownership and verify your readiness to become a successful homeowner.

Property Requirements

The property you purchase must be a single-family home or duplex located within Philadelphia city limits. Condominiums are not eligible for this program. The property must be in Philadelphia proper—properties in surrounding counties do not qualify. The property may be newly constructed or an existing home.

Primary Residence Intent

You must intend to occupy the purchased property as your primary residence. The program is designed to help owner-occupants, not investors or second-home buyers. After purchase, you must maintain the home as your primary residence to keep the grant and avoid repayment obligations.

Program Compatibility

If you are considering using more than one homebuyer grant opportunity, you must confirm with your housing counselor that all programs are compatible. Some grant programs cannot be layered or used together, so early coordination with your counselor is essential to maximize your available assistance.

Homebuyer Counseling

The Philly First Home Program requires all applicants to complete homebuyer counseling through a City-funded housing counseling agency. This is not a one-time workshop but rather individualized one-on-one counseling with a certified housing advisor.

Counseling Topics Covered

Your housing counselor will help you understand and prepare for every aspect of homeownership:

  • Deeds and other legal housing documents
  • Avoiding predatory and dangerous mortgages
  • Purchasing a home within your budget and financial means
  • Your rights and responsibilities as a homeowner
  • The mortgage application and purchase process
  • Credit improvement, credit repair, and credit maintenance
  • Money management and financial planning
  • Home maintenance and upkeep
  • Avoiding foreclosure and managing homeownership challenges

Finding a Housing Counselor

The City of Philadelphia maintains a list of City-funded housing counseling agencies. Contact PHDC or visit the Division of Housing and Community Development website to find a counseling agency near you. Each agency offers flexible scheduling to accommodate working individuals and families.

Counseling Completion Timeline

Counseling must be completed before you sign your Agreement of Sale. The timing allows you to learn about the home-buying process, assess your readiness, and gather all necessary documentation before committing to a purchase. Your counselor can also help you understand all available grants and assistance programs you may qualify for.

Application Process

Step 1: Contact a Housing Counseling Agency

Begin by contacting a City-funded housing counseling agency. You can find agencies through PHDC or the Division of Housing and Community Development. When you contact the agency, you will provide basic information including your household income, source of income (employment, SSI, DPA, etc.), and the number of family members who will live in the home.

Step 2: Complete One-on-One Homebuyer Counseling

Meet with a certified housing counselor in one-on-one sessions. Your counselor will assess your readiness to become a homeowner, help you understand your financial situation, discuss available programs and grants, and prepare you for the home-buying process. The counselor will verify your income and household composition to confirm initial eligibility.

Step 3: Obtain Counseling Certification

Upon completion of counseling, your housing counselor will provide written confirmation of your completion. This certification must be kept as proof that you have met the program requirement. Your counselor will confirm your eligibility for the Philly First Home Program and provide guidance on next steps.

Step 4: Find a Home and Make an Offer

With counseling complete, you are ready to search for a home that meets program requirements (single-family home or duplex in Philadelphia) within your budget. When you find a property you want to purchase, you and the seller will negotiate and sign an Agreement of Sale.

Step 5: Formal Program Application

Once you have an Agreement of Sale and have completed counseling, you can submit a formal application for the Philly First Home grant. Your housing counselor can assist with this application. You will need to provide documentation of your income, counseling completion, and details about the property and purchase price.

Step 6: Mortgage Pre-Approval and Underwriting

Work with a lender to obtain pre-approval and move through the mortgage underwriting process. The Philly First Home grant will be considered part of your down payment and closing cost assistance. Your lender can coordinate with PHDC regarding the grant amount and how it will be applied at closing.

Step 7: Closing

At closing, the grant funds are disbursed and applied to your down payment and/or closing costs as determined by your lender and the program. You will sign all necessary documents to complete your home purchase, and your deed will be recorded with the city.

Program Details and Restrictions

Eligible Properties

Only single-family homes and duplexes in Philadelphia qualify. Townhouses, condominiums, co-ops, and multi-unit properties are not eligible. The property must be located within Philadelphia city limits. Properties in surrounding counties such as Montgomery, Bucks, Chester, or Delaware counties do not qualify for this program.

Affordability Period and Repayment

The Philly First Home grant is provided with the expectation that you will maintain the home as your primary residence for an extended affordability period (typically 15 years, depending on current program terms). If you sell, transfer, lease, rent, or abandon the property as your primary residence during this period, you may be required to repay a portion of the grant based on the program's recapture provisions. The amount owed, if any, would typically be calculated based on your home's appreciation and sale proceeds.

No Monthly Payments

The grant does not require monthly payments. Unlike some assistance programs, you will not make ongoing payments on the grant amount. If you maintain the property as your primary residence and meet all program requirements, the grant is forgiven at the end of the affordability period.

Program Data and Statistics

The Philly First Home Program has successfully assisted thousands of homebuyers. Recent program data shows:

  • Average home purchase price: $193,300
  • Average household income: $60,858
  • Average mortgage interest rate: 6.2%
  • Average household size: 2 people
  • Average age of homebuyer: 34 years old
  • 53% of beneficiaries are female heads of household
  • 54% of beneficiaries identify as Black or African American
  • 30% of beneficiaries identify as Hispanic or Latino

Frequently Asked Questions

Is the Philly First Home grant taxable income?

Homebuyer assistance grants may be considered taxable income. Consult with a tax advisor to understand the potential tax implications of receiving a grant. PHDC or your housing counselor can provide guidance on this issue.

Can I use Philly First Home with other assistance programs?

You may be able to layer Philly First Home with other programs, but you must confirm compatibility with your housing counselor. Some grant programs have restrictions on layering, so early coordination is essential.

What if my income exceeds the limit?

Income limits are firm eligibility requirements. If your household income exceeds the limit for your household size, you do not qualify for this program. However, the City of Philadelphia and other organizations may offer alternative programs for moderate-income buyers. Your housing counselor can discuss other options.

Can I use Philly First Home to buy a condo?

No. Condominiums are not eligible for the Philly First Home Program. You must purchase a single-family home or duplex.

What if I need to sell before 15 years?

If you sell or transfer the property before the affordability period ends, you may be required to repay a portion of the grant from your sale proceeds based on the program's recapture provisions. Contact PHDC to understand your specific repayment obligations before selling.

Is the counseling requirement waivable?

No. Homebuyer counseling completion is a mandatory requirement for the program. It must be completed before you sign your Agreement of Sale. The counseling is provided free of charge to help prepare you for homeownership.

Can someone else pay for my home purchase if I get the Philly First Home grant?

The grant is for the homebuyer's use. While others may gift funds toward your down payment or closing costs, the Philly First Home grant itself is awarded to you as the homebuyer and intended to reduce your out-of-pocket costs.

Program Strengths and Benefits

  • No Repayment: Unlike loans, grants do not require repayment if you maintain the home as your primary residence
  • Substantial Assistance: Up to $10,000 significantly reduces upfront costs and makes homeownership more accessible
  • Free Counseling: Homebuyer education is provided at no cost, preparing you for successful homeownership
  • Inclusive Income Limits: Relatively generous income limits at 100% of AMI make the program accessible to working families
  • Flexible Property Types: Both new and existing homes, single-family and duplexes are eligible
  • City Support: A program directly supported by the City of Philadelphia government

Getting Started

To apply for the Philly First Home Program, start by contacting a City-funded housing counseling agency. You can find agencies through the Philadelphia Housing Development Corporation or the Division of Housing and Community Development. Begin with counseling, which must be completed before you start house hunting or make an offer on a property.

Philadelphia Housing Development Corporation (PHDC)
1234 Market Street, 17th Floor
Philadelphia, PA 19107
Phone: 215-686-9749
Website: phdcphila.org/philly-first-home/

City of Philadelphia Division of Housing and Community Development
Phone: 215-686-9749
Website: www.phila.gov/dhcd

The program is accepting applications throughout the year. Apply early to ensure you can secure funding and move through the process at a comfortable pace.

Conclusion

The Philly First Home Program removes a major financial barrier to homeownership for income-qualified first-time homebuyers in Philadelphia. By providing up to $10,000 in grant assistance combined with free homebuyer counseling and education, the program ensures that qualified buyers are both financially supported and properly prepared for homeownership. If you are a first-time homebuyer living in Philadelphia with income below the program limits, the Philly First Home Program can help make your homeownership dream a reality.