Down Payment Assistance in Pennsylvania

What is down payment assistance in Pennsylvania?

Home prices in Pennsylvania range from big-city Philadelphia to affordable small towns, and with the right down payment resources, finding an attainable path to homeownership here is easier than many buyers realize.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Pocono Mountains to the banks of the Ohio River, Pennsylvania homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Pennsylvania or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Pennsylvania

The Pennsylvania Housing Finance Authority (PHFA) is the state’s housing finance agency and the central source for statewide DPA programs. PHFA doesn’t lend directly to buyers. Homebuyers apply through a PHFA-approved participating lender who will combine the assistance with the mortgage.

PHFA assistance loans are available with PHFA home purchase loans, and depend on a borrower’s specific circumstances, such as credit history and amount of cash savings. Borrowers should work with a PHFA-approved lender to determine which assistance loan is right for them.

PHFA Grant

The PHFA grant provides assistance of up to $500 to help with down payment assistance and closing costs when combined with the HFA Preferred loan. The funds do not require repayment and must be used toward the purchase of the home.

PHFA Keystone Advantage Assistance Loan Program

This program provides a second mortgage loan to help homebuyers with the costs associated with the purchase of a home. Qualified buyers can receive up to 4% of the purchase price or market value or $6,000 (whichever is less) in down payment and closing costs assistance. The funds are provided in the form of a 0% interest, 10-year loan, which requires monthly payments.

Buyers must meet the requirements of the applicable PHFA first mortgage program, and the following:

• Minimum credit score of 660
• Minimum loan amount of $500
• May be used on Conventional, FHA, VA, or RD loans
• Borrowers’ assets may not be greater than $50,000

PHFA Keystone Forgivable in Ten Years Loan Program (K-FIT)

This program provides a second mortgage loan to help homebuyers with the costs associated with the purchase of a home. Qualified buyers can receive up to 5% of the purchase price or appraised value (whichever is lower) in down payment and closing costs assistance. The K-Fit is forgivable on an annual basis over 10 years, at a rate of 10% a year.  

Buyers must meet the requirements of the applicable PHFA first mortgage program, and the following:

• Minimum credit score of 660
• Minimum loan amount of $500
• May be used on Conventional, FHA, VA, or RD loans
• Borrowers assets may not be greater than $50,000

PHFA Keystone Due At Time of Expiration (K-DATE)

This program provides a second mortgage loan to help homebuyers with the costs associated with the purchase of a home. Eligible borrowers with loan amounts less than or equal to $150,000 may receive 8% of the lesser of the purchase price or appraised value with no maximum dollar amount in down payment or closing costs assistance.

Eligible borrowers with loan amounts greater than or equal to $150,001 may receive 5% of the lesser of the purchase price or appraised value with no maximum dollar limit. The 0% interest loan requires no monthly payments over the 30-year term. Repayment of the K-DATE is deferred and is due at expiration, which occurs upon the sale of the home, refinance of the mortgage, or payoff of the first mortgage.    

Buyers must meet the requirements of the applicable PHFA first mortgage program, and the following:

• Minimum credit score of 660
• Minimum loan amount of $500
• May be used on Conventional, FHA, VA, or RD loans
• Borrowers’ assets may not be greater than $50,000

PHFA HOMEstead Downpayment and Closing Cost Assistance Loan

This program provides a second mortgage loan to help homebuyers with the costs associated with the purchase of a home. Eligible borrowers may receive up to $10,000 in down payment or closing cost assistance. The no-interest second mortgage is forgiven at 20% per year over five years.

Buyers must meet the requirements of the applicable PHFA first mortgage program, and the following:

• Must meet HOMEstead program income and home purchase limits
• Funding is provided on a first-come, first-served basis

Beyond PHFA statewide programs, several Pennsylvania cities and counties have established their own DPA programs. Many of these can be stacked with PHFA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Philadelphia down payment assistance programs

Philadelphia is Pennsylvania’s largest metropolitan area, known for its rich revolutionary history, championship sports culture, and neighborhoods full of character. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

Philadelphia’s down payment assistance program includes:

Philly First Home This down payment assistance program provides up to $10,000 or 6% of the home’s purchase price (whichever is lower) to assist first-time homebuyers.  

Philly First Home requirements include:

• Property must be a single-family home or duplex in Philadelphia
• Must be a first-time homebuyer or have not owned a home in the past three years
• Must meet income eligibility requirements
• Completion of a homeownership education course

Pittsburgh down payment assistance programs

Pittsburgh is Pennsylvania’s second-largest metropolitan area, transformed from a steel town into a hub for healthcare, tech, and education. Its distinct neighborhoods, dozens of bridges, and relatively affordable housing keep drawing homebuyers who want strong job opportunities without the higher costs of bigger East Coast cities.

Pittsburgh’s down payment assistance program includes:

Down Payment Assistance Program: The program offers up to $7,500 for down payment and closing costs assistance for first-time homebuyers. No payments are made during the term of the loan as long as residency requirements are met.

Program requirements include:

• Up to $7,500 is available for borrowers making less than 80% of the area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development. The funds are provided as a 0% interest, 5-year deferred loan
• Up to $5,000 is available for borrowers making between 80% and 115% of the AMI. The funds are provided as a 0% interest, 10-year deferred loan
• Property must be your primary residence
• Must not have over $20,000 in liquid assets after closing
• Must complete HUD-certified homebuyer course

Delaware County down payment assistance programs

Delaware County sits southwest of Philadelphia, offering suburban living with easy access to the city. It’s a popular choice for buyers who want proximity to Philly at a lower cost than the city itself.

Delaware County down payment assistance program includes:

Homeownership First Program: The program provides counseling and up to $10,000 or 2% of the sales price in down payment and closing cost assistance for income-eligible first-time buyers purchasing a home within Delaware County. Funding is limited and there is no guarantee of receiving financial assistance upon completion of the counseling program. Funding is provided in the form of a 0% interest loan that is repayable upon sale or transfer of the property. The loan is forgiven after five years if the property is located in a Revitalization Area.

Program requirements include:

• Must be a low- or moderate-income first-time homebuyer or hasn’t owned a home in the previous three years
• Must have a current household income of no more than 80% of AMI
• Purchase price of property may not exceed $290,000
• Must live in the home as a primary residence
• Borrowers must contribute at least $1,000 toward the purchase of the home

These are the main down payment assistance programs available across Pennsylvania. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Pennsylvania down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at phfa.org. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. PHFA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Pennsylvania property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Pennsylvania down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}