First-Time Homebuyer Programs in Pennsylvania
Pennsylvania offers some of the strongest first-time homebuyer programs in the country. Between PHFA loans, down payment assistance grants, FHA financing, and local programs, buyers with modest savings can often purchase in Bucks County, Montgomery County, and across southeastern PA. Dynamic Funding Solutions has helped hundreds of Pennsylvania first-time buyers navigate these stacked programs since 1997.
What Counts as a "First-Time Buyer" in Pennsylvania?
- You have not owned a primary residence in the past 3 years
- PHFA exception: even if you have owned before, you may qualify in a "targeted area" — census tracts designated by HUD as revitalization zones
- Income and purchase price limits apply for most programs (vary by county)
PHFA Keystone Home Loan Program
Pennsylvania’s flagship first-time buyer mortgage program.
- Conventional, FHA, VA, and USDA loan types accepted
- Income limits: ~$92,000–$120,000 depending on county and household size
- Purchase price limits: ~$349,525–$491,875 depending on county
- Bucks County and Montgomery County are typically at the higher end of limits
- Paired with PHFA down payment assistance programs below
PHFA K-FIT — 5% Forgivable Down Payment Assistance
- 5% of the purchase price (up to $15,000 typical range)
- 0% interest — no monthly payment
- Forgiven 10% per year — fully forgiven after 10 years
- Must be paired with a PHFA first mortgage
PHFA HOMEstead Grant
- Up to $10,000 in down payment and closing cost assistance
- Deferred loan — no monthly payments; due on sale, refinance, or if home is no longer primary residence
- Available in certain counties and income ranges
- May be paired with K-FIT for maximum stacking
FHA Loans for First-Time Buyers in PA
- 3.5% down with 580+ credit score
- Pairs with PHFA assistance programs
- FHA loan limits in southeastern PA: $524,225 (Philadelphia metro MSA)
- Good option for buyers with 580–680 credit range
VA Loans for First-Time Buyers in PA
- Zero down payment — no other program comes close
- For veterans, active duty, and surviving spouses
- No PMI, competitive rates, flexible credit
- Can be combined with closing cost assistance
Related pages: VA Loan Montgomery County | VA Loan Bucks County | VA Loan Philadelphia
USDA Loans — Rural Pennsylvania
- Zero down payment
- For properties in USDA-eligible rural areas (check map at usda.gov)
- Income limits apply
- Parts of Bucks County, Chester County, and western PA have USDA-eligible zones
Income and Purchase Price Limits for Bucks and Montgomery County
Note: exact limits update annually — current numbers at phfa.org
- Bucks County income limit (1–2 person household): ~$92,000
- Bucks County income limit (3+ person household): ~$105,800
- Montgomery County: similar range
- Purchase price limits: up to ~$491,875 in these counties
FAQ — First-Time Homebuyer Programs Pennsylvania
Can I stack PHFA K-FIT with an FHA loan?
Yes. The most common combination for first-time buyers is an FHA first mortgage through PHFA + K-FIT 5% forgivable second mortgage. This reduces the out-of-pocket down payment to near zero on many transactions.
Do I have to be a first-time buyer to use PHFA?
Not always. If you are purchasing in a HUD-designated "targeted area" in Pennsylvania, the first-time buyer requirement is waived even if you have owned before.
What credit score do I need for PHFA programs?
PHFA typically requires a minimum 620 credit score. FHA through PHFA allows down to 580. Some Non-QM and bank statement programs have no minimum.
How long does a PHFA loan take to close?
PHFA loans typically close in 45–60 days due to the state agency review process. Buyers should plan accordingly when writing purchase offers.
First-time buyer in Pennsylvania? Call Lena Polnet at (215) 364-7171. We will match you with the right combination of programs for your income, credit, and county.
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.