Pennsylvania’s housing market offers a balanced mix of affordability and diversity, from vibrant city neighborhoods to quiet rural communities. Although home prices remain relatively moderate compared to many parts of the country, coming up with the initial funds for a down payment can still be a significant challenge for many buyers.
To make the process more achievable, Pennsylvania offers a variety of down payment assistance (DPA) programs aimed at easing the financial strain of buying a home. These initiatives are available through state, county, and local housing agencies. They are designed to provide support in the form of grants, forgivable loans, and low- or no-interest second mortgages.
While this article doesn’t cover every option out there, it highlights some of the most accessible and widely used programs across the state. We’ll continue to update this page as new resources become available or existing programs evolve.
What is Area Median Income (AMI)?
While browsing this list, you'll likely notice that many down payment assistance programs in Pennsylvania have limits pertaining the applicants' income relative to their area median income (AMI).What exactly does this mean?
Say, for example, the area median income for the location you're purchasing a home is $95,000 and the program you're applying for requires applicants to earn no more than 80% of AMI. Here, you could have qualifying income of up to $76,000 and still be eligible.
Check out the Fannie Mae AMI Lookup Tool to find the area median income for where you're planning to buy.
Statewide Down Payment Assistance Programs
Pennsylvania's statewide programs are mostly managed by the Pennsylvania Housing Finance Agency (PHFA), with additional support from private and federal partnerships. Here are the top programs worth your attention:
Keystone Forgivable in Ten Years Loan Program (K-FIT)
The Keystone Forgivable-in-Ten-Years Loan Program (K-FIT) offers a forgivable second loan of up to 5% of the purchase price or appraised value of the home, with no monthly payments and full forgiveness after ten years of owner-occupancy.
Eligibility: You must have a minimum credit score of 660, use a PHFA Keystone Home Loan as your first mortgage, and meet income and purchase price limits.
Keystone Advantage Assistance Loan Program
The Keystone Advantage Program offers up to $6,000 or 4% of the home price (whichever is less) as a 0% interest second mortgage repayable over 10 years.
Eligibility: You must have a minimum credit score of 660, liquid assets below $50,000 after closing, and be using a PHFA first mortgage product.
PHFA Grant
The PHFA Grant provides a flat $500 grant to assist with down payment or closing costs, offered in combination with PHFA’s HFA Preferred (Lo MI) loan.
Eligibility: You must qualify for and use PHFA's HFA Preferred (Lo MI) program and meet its income and credit standards.
First Front Door (FFD) Program
The First Front Door (FFD) Program provides a grant offered through the Federal Home Loan Bank of Pittsburgh that provides a conditional grant of up to $15,000 (based on a $1,500 contribution from the buyer).
Eligibility: You must own and occupy the home for five years in order to keep the full amount of the grant, have a household income at or below 80% of the area median income, and use a participating lender.
Down Payment Assistance Programs by County
Many Pennsylvania counties manage their own DPA programs funded through local trust funds or HUD HOME allocations. Here are some of the top county-level options:
Montgomery County First-Time Homebuyers Program
The Montgomery County First-Time Homebuyers Program provides up to $10,000 (or 10% of the purchase price) as a 0% interest loan that is forgiven after 15 years of owner-occupancy.
Eligibility: You must be a first-time homebuyer, earn less than 80% of AMI, live or work in Montgomery County, and contribute at least 3% of the purchase price.
Bucks County First-Time Homebuyers Program
Bucks County’s Program offers up to $10,000 in down payment and closing cost assistance via a 0% interest loan, repayable upon resale or transfer.
Eligibility: You must be a first-time homebuyer with a household income not exceeding 100% of area median income, and complete required housing counseling.
Delaware County Homeownership First Program
The Delaware County Homeownership First Program provides up to $10,000 in assistance as a deferred loan, fully forgivable after 5 years if the home is in a designated Revitalization Area.
Eligibility: You must be a first-time buyer with household income at or below 80% of AMI, and complete a HUD-certified counseling program.
Northampton County First-Time Homebuyer Program
Northampton County’s Program offers up to $10,000 in down payment and closing cost assistance as a forgivable second mortgage.
Eligibility: You must be a first-time buyer, have income below 80% of AMI, and complete homebuyer education. The maximum sale price is set at $290,000 (2025), and the homebuyer has to contribute $1,000 from their own funds.
Down Payment Assistance Programs by City
Pennsylvania's larger cities administer targeted DPA programs to support their unique housing goals. These programs often offer higher amounts and more forgiving terms than county-level options.
Philly First Home
The Philly First Home Program provides up to $10,000 (or 6% of the purchase price, whichever is less) in grant funds to help with down payment or closing costs.
Eligibility: You must be a first-time homebuyer purchasing within Philadelphia, be income eligible, and complete required housing counseling.
URA Pittsburgh Down Payment and Closing Cost Assistance Program
Pittsburgh’s Program offers $5,000 to $7,500 in assistance depending on income tier, with forgivable loan terms of 5 to 10 years.
Eligibility: You must be a first-time buyer purchasing in Pittsburgh, have income up to 115% of AMI, and have post-closing assets below $20,000.
Bethlehem Homebuyer Assistance Program (BHAP)
The Bethlehem Homebuyer Assistance Program provides up to 10% of the purchase price plus closing costs as a forgivable loan forgiven over 10 years.
Eligibility: You must be a first-time buyer, have income at or below 80% of AMI, and contribute at least $1,000 of your own funds.
City of Scranton Homebuyer Assistance Program
The City of Scranton Homebuyer Program offers up to $20,000 in forgivable assistance for down payment and closing costs, typically forgiven after five years.
Eligibility: You must be a first-time buyer, purchase within the City of Scranton, and complete certified homebuyer education.
Additional Down Payment Assistance Programs in Pennsylvania
Here are other programs that were not mentioned above but may still be available depending on your location and circumstances.
Statewide Programs
Access Downpayment Assistance (for Persons with Disabilities)
Chenoa Fund (Nationwide program available in Pennsylvania)
County Programs
City Programs
Final Thoughts
Whether you're buying in Philadelphia, a Pittsburgh suburb, or one of Pennsylvania's many scenic counties, there are numerous down payment assistance programs that can help make your homeownership dream a reality. Be sure to stay informed about current mortgage rates and experiment with our loan calculators to estimate your monthly payment and affordability. With the right plan and support, homeownership in Pennsylvania is more within reach than you might think.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
