Down Payment Path

Down Payment Assistance Programs in Pennsylvania

Pennsylvania offers a variety of programs to help homebuyers cover the upfront costs of purchasing a home. These initiatives are available to both first-time and repeat buyers, making homeownership more accessible across the Keystone State.

Keystone Advantage Assistance Loan Program

The Keystone Advantage Assistance Loan Program, offered by the Pennsylvania Housing Finance Agency (PHFA), provides financial support for down payments and closing costs.

  • Offers up to 4% of the home’s purchase price or $6,000, whichever is less.
  • Provided as a second mortgage with a 0% interest rate and a 10-year repayment term.
  • Pairs with PHFA's affordable mortgage products, including FHA, VA, USDA, and conventional loans.
  • Available to buyers meeting income and purchase price limits.

HOMEstead Down Payment Assistance

The HOMEstead Program provides additional assistance for buyers purchasing in eligible areas across Pennsylvania.

  • Offers up to $10,000 in down payment and closing cost assistance.
  • Provided as a forgivable loan, forgiven over five years as long as the buyer remains in the home.
  • Open to buyers who meet specific income and property eligibility criteria.

USDA Rural Development Loans

For buyers in rural Pennsylvania, the USDA Rural Development Loan offers no down payment financing options.

  • Available to low- and moderate-income buyers in USDA-designated rural areas.
  • Offers competitive interest rates and flexible credit requirements.
  • Can be combined with PHFA assistance programs to cover closing costs.

Mortgage Tax Credit Certificate (MCC)

The Mortgage Tax Credit Certificate (MCC) program offers significant tax savings for homebuyers, reducing the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with PHFA loans and other assistance programs.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Several cities and counties in Pennsylvania provide additional support for homebuyers through grants or low-interest loans for down payment and closing costs.

  • Programs in areas like Philadelphia, Pittsburgh, and Allentown often target buyers in revitalization zones or provide benefits for public service workers, such as teachers and first responders.
  • Eligibility and assistance levels vary based on location.
  • Many local initiatives can be combined with statewide programs for greater financial support.

Pennsylvania’s down payment assistance programs are designed to reduce financial barriers and make homeownership attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Keystone State.