Pennsylvania First Time Home Buyer
Essential information for first time home buyers in PA
Pennsylvania has several assistive programs for first-time homebuyers and other homebuyers who want to become a homeowner. Pennsylvania first time home buyers are fortunate to have access to several first-time homebuyer assistance programs throughout the Commonwealth. They provide affordable rates and low competitive interest rates.
Which Pennsylvania first time home buyer programs are provided by PHFA?
One of Pennsylvania’s premier providers of first-time home buyer programs is the Pennsylvania Housing Finance Agency. The PHFA offers several programs, including a program that provides down payment and closing cost assistance to qualified potential first-time homebuyers.
The Pennsylvania Housing Finance Agency also offers various grants, mortgage loan programs, refinancing, and home improvement loans.
PHFA Keystone Advantage Assistance Loan Program
The PHFA Keystone Advantage Assistance Loan Program is a second mortgage loan that borrowers can put towards a down payment and closing cost assistance. The program allows qualified applicants to borrow as much as four percent (4%) of the purchase price or market value or $6,000, whichever is less.
Further, the loan terms for first time home buyer loans in Pennsylvania are as follows. Borrowers repay the loan in monthly payments at zero percent (0%) interest over ten (10) years. The minimum credit score is 660.
Application process of PHFA first-time homebuyer programs
The 1st homebuyer programs in PA do not consist of loans issued by PHFA. Instead, the mortgages originate from traditional lenders such as banks and mortgage companies.
Experienced professionals can assist you by identifying the program that best suits your current situation and guides you through every step of the application process including underwriting and PHFA approval.
What is the household eligibility for the PHFA Keystone Advantage Assistance Loan?
To qualify for the PHFA Keystone Advantage Assistance program, an applicant must meet the following requirements:
- A resident of the Commonwealth of Pennsylvania;
- A minimum credit score of 660;
- Proceeds of the loan must go towards a down payment or closing costs of a conventional, FHA, VA, or RD loan;
- Minimum loan amount of $500;
- Liquid assets of no more than $50,000 after closing funds are deducted;
- The borrower must meet household income limits;
- The borrower must meet home price limits;
- May not be combined with other PHFA assistance programs, except the Access Modification Loan Program.
What are the current PHFA income and purchase price limits?
The PHFA Keystone Home Loan Program has household income and purchase price limits for first time home buyers in PA. PHFA counts you as a first time buyer if you have not owned your principal residence during the previous three years. Buyers who do not meet that test can still qualify in targeted areas, or as discharged veterans. Each Pennsylvania county has its own limits, published by PHFA in Appendix A.
For reservations on or after July 1, 2026, the Keystone Home Loan purchase price limits range from $499,900 in the lowest limit counties to $730,600 in Philadelphia, which is a target area. In Bucks, Chester, Delaware and Montgomery counties the purchase price limit is $588,800.
Income limits also depend on household size. For one and two person households, the limits range from $106,000 to $147,200. For households with three or more members, they range from $121,900 to $171,700. In Bucks, Chester, Delaware and Montgomery counties the limits are $122,700 and $141,100. Source: PHFA Keystone Home Loan Appendix A, effective July 2026. We verified these figures against PHFA on September 20, 2026.
Check your county's PHFA limits
Pick your county and household size to see the Keystone Home Loan purchase price limit and income limit that apply to you. Add your income and target price to compare them with the limits.
Source: PHFA Keystone Home Loan Appendix A, effective for reservations on or after July 1, 2026, all 67 counties. Checked against PHFA on October 7, 2026. Income counts every adult who plans to live in the home. Some census tracts inside other counties are also targeted areas; Appendix A lists them. A PHFA participating lender confirms your final eligibility.
What are the limits of the PHFA grant program?
The PHFA offers eligible households a grant of $500 that can be used for down-payment and closing cost assistance. Eligible applicants who obtain the HFA Preferred (Lo MI) loan can receive the grant, and they do not have to repay it. The grant may also be combined with the Keystone Advantage Assistance Loan Program.
Additional PHFA programs for home buyers
In addition to the aforementioned programs, the PHFA also offers the Keystone Forgivable in Ten Years Loan Program (K-FIT). This program acts as a second mortgage for up to 5% of the home’s purchase price or appraised value, whichever is less. K-FIT has no maximum dollar amount, and PHFA forgives ten percent (10%) of the loan each year. The minimum credit score is 660, and K-FIT is paired with the Keystone Home Loan only.
Another PHFA option is the Keystone Due At Time of Expiration loan, known as K-DATE. It offers assistance of 8% of the lesser of the purchase price or appraised value when the first mortgage is $150,000 or less, and 5% when the first mortgage is above $150,000. K-DATE carries zero percent (0%) interest and a 30 year term with no monthly payments required until you sell, refinance or pay off the first mortgage. The minimum credit score is 660. See our guide to PHFA down payment assistance in Pennsylvania for more.
PHFA down payment help side by side
| Program | How much help | How it is repaid | First mortgage it pairs with | Minimum credit score |
|---|---|---|---|---|
| Keystone Advantage Assistance | 4% of the purchase price or market value, or $6,000, whichever is less | Monthly over 10 years at 0% interest | HFA Preferred, Keystone Government or Keystone Home loan | 660 |
| K-FIT | 5% of the lesser of the purchase price or appraised value, no dollar cap | Forgiven at 10% a year over 10 years | Keystone Home Loan | 660 |
| K-DATE | 8% of the lesser of the price or appraised value when the first mortgage is $150,000 or less; 5% above $150,000 | 0% interest, no monthly payments; due when you sell, refinance or pay off the first mortgage | Keystone Flex | 660 |
| PHFA Grant | $500 | Not repaid | HFA Preferred (Lo MI) | Set by the first mortgage |
Sources: PHFA Purchase Assistance programs, K-FIT and Keystone Flex with K-DATE, checked October 7, 2026. Keystone Advantage and K-FIT also require liquid savings of no more than $50,000 after closing, and neither can be combined with another PHFA assistance program except the ACCESS Home Modification Loan.
Can you use PHFA help with an FHA loan?
PHFA is not a separate kind of loan that competes with FHA. PHFA's Keystone Home Loan can be a conventional, FHA, VA or RD loan, and PHFA lists a 3.5% minimum investment for the FHA version. K-FIT and Keystone Advantage may be used on conventional, FHA, VA or RD loans, so a buyer can put PHFA down payment help on top of an FHA first mortgage, as long as they meet PHFA's income, price and credit rules. Our FHA loans page covers the FHA side in detail.
Which PHFA help could fit you?
Answer four questions to see which PHFA programs to ask about. This is a starting point, not an approval.
Is your credit score 660 or higher?
Have you owned your home in the last three years?
After closing, will you have more than $50,000 left in cash, checking, savings or investments?
About how big will your first mortgage be?
Based on PHFA program rules checked October 7, 2026. Amounts use the purchase price; PHFA uses the lesser of the price or appraised value. Income and purchase price limits also apply: check your county.
Frequently asked questions about PA first time home buyer programs
It is a second mortgage that helps with your down payment and closing costs. You can borrow up to 4% of the purchase price or market value, or $6,000, whichever is less. It carries 0% interest and is repaid monthly over 10 years. The minimum credit score is 660.
The Keystone Advantage Assistance Loan, K-FIT and K-DATE each require a minimum credit score of 660. For the Keystone Home Loan, PHFA requires a minimum of 660 on PHIF insured loans and lists no PHFA minimum for FHA, VA or RD loans.
For Keystone Home Loan reservations on or after July 1, 2026, income limits range from $106,000 to $147,200 for one and two person households and from $121,900 to $171,700 for households of three or more, depending on the county. In Bucks, Chester, Delaware and Montgomery counties the limits are $122,700 and $141,100.
The Keystone Advantage Assistance Loan cannot be combined with other PHFA assistance programs, except the Access Modification Loan Program. The $500 PHFA grant can be combined with the Keystone Advantage Assistance Loan, and K-FIT is paired with the Keystone Home Loan only.
K-FIT is the Keystone Forgivable in Ten Years loan. It is a second mortgage for up to 5% of the lesser of the purchase price or appraised value, with no maximum dollar amount. It is forgiven at 10% a year over ten years, and the minimum credit score is 660.
K-DATE is the Keystone Due At Time of Expiration loan. It offers 8% of the lesser of the purchase price or appraised value when the first mortgage is $150,000 or less, and 5% when it is above $150,000. It carries 0% interest and a 30 year term with no monthly payments until you sell, refinance or pay off the first mortgage.
PHFA counts you as a first time home buyer if you have not owned your principal residence during the previous three years. Buyers who do not meet that test can still qualify in targeted areas, or as discharged veterans.
Yes. PHFA says K-FIT and the Keystone Advantage Assistance Loan may be used on conventional, FHA, VA or RD loans, and its Keystone Home Loan lists an FHA option with a 3.5% minimum investment. You still need to meet PHFA’s income, purchase price and 660 credit score rules.
Call Dynamic Funding Solutions at (215) 364-7171 or use the form on this page. A loan professional will help you find the program that fits your situation and guide you through the application.
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