Down Payment Assistance Programs in Pennsylvania
One of the biggest barriers to homeownership in Pennsylvania is saving enough for a down payment. Multiple programs exist at the state, county, and municipal level to close that gap. Dynamic Funding Solutions helps buyers layer these programs to minimize what comes out of pocket at closing.
PHFA K-FIT — Best Down Payment Assistance in PA
- 5% of purchase price — no interest — forgivable over 10 years
- No monthly payment — it just disappears if you stay 10 years
- Works with FHA, conventional, VA, and USDA
- Must use a PHFA-participating lender
PHFA HOMEstead
- Up to $10,000 in deferred assistance
- No monthly payment — repaid on sale, refinance, or if you move out
- Can be combined with K-FIT for maximum stacking
Bucks County DPA Programs
- Bucks County Housing Authority administers local income-qualified programs
- Typically targets households at 80% of Area Median Income (AMI) or below
- Contact the Housing Authority directly for current availability
Montgomery County DPA
- Montgomery County Office of Housing and Community Development
- Various grant and deferred loan programs for income-qualified buyers
City of Philadelphia Homebuyer Assistance
- Philly Home Assistance — up to $10,000 grant for qualifying buyers
- Income limits apply — 100% AMI or below for most programs
Federal Home Loan Bank (FHLB) Programs
- Some lenders participate in FHLB grant programs (up to $7,500–$10,000)
- Ask your broker if their wholesale lenders participate
- Dynamic Funding Solutions can access multiple FHLB-participating wholesale lenders
Seller Concessions as Down Payment Strategy
- FHA allows up to 6% seller concessions (closing costs only, not down payment)
- Conventional allows 3–9% seller concessions depending on LTV
- In combination with DPA, seller concessions can eliminate most out-of-pocket costs
FAQ — Down Payment Assistance Pennsylvania
What is the maximum down payment help I can get in Pennsylvania?
Stacking PHFA K-FIT (5%) + PHFA HOMEstead ($10,000) + seller concessions can bring many Pennsylvania buyers very close to zero out of pocket. The exact amount depends on purchase price and income qualification.
Do down payment assistance programs have to be paid back?
It depends. K-FIT is forgivable — it disappears after 10 years. HOMEstead is deferred — repaid when you sell or refinance. Some local grants are true grants with no repayment. Dynamic Funding Solutions explains the full terms at pre-approval.
Can I use DPA if I have credit below 620?
Most PHFA programs require 620+. Some Non-QM programs with private DPA options exist for borrowers below 620. Call to discuss options.
Call (215) 364-7171 to find out which down payment programs you qualify for. We will run through your full picture — credit, income, county, purchase price — and tell you exactly what programs apply.
Related pages: PHFA K-FIT Grant | First-Time Homebuyer Programs Pennsylvania
Dynamic Funding Solutions | NMLS #17144 | Lena Polnet NMLS #17225 | Licensed in Pennsylvania. This is not a commitment to lend. Programs subject to change. Income, purchase price, and credit requirements apply. Contact us for current program availability.