Pennsylvania First-Time Home Buyer Programs 2026

Pennsylvania Home Buyer Programs Compared (2026)

Pennsylvania buyers can pick from 4 PHFA first mortgages and 4 PHFA assistance products, and apart from the $500 grant and the Access loans, PHFA won't let you stack them. Here's the lineup as of November 3, 2026.

Sources: PHFA assistance page, Seller's Guide (August 2026) and May 1, 2026 K-DATE press release; City of Philadelphia and PHDC; URA of Pittsburgh; Allegheny County. All checked November 3, 2026.

The plain version: only the $500 PHFA Grant is free from day one. K-FIT gets close if you stay a decade, and Philly First Home is free if you stay 15 years and don't refinance. K-DATE is the one that never goes away; you repay every dollar when you sell.

PHFA Income and Purchase Price Limits by County (July 1, 2026)

PHFA publishes 3 separate limit tables, and the one that applies depends on which first mortgage you choose. According to PHFA's Appendix A, the Keystone Home Loan limits below took effect for reservations on or after July 1, 2026. Keystone Flex uses one statewide limit of $212,000 in income and a $730,600 price cap (Appendix F, July 1, 2026). HFA Preferred limits are set at 80% of area median income (Appendix B, locks on or after June 13, 2026).

Sources: PHFA Seller's Guide Appendix A (opens in a new tab) (July 1, 2026), Appendix B (opens in a new tab) (June 13, 2026) and Appendix F (opens in a new tab) (July 1, 2026). Counties are listed by their Census Bureau population estimate for July 1, 2025. Some non-targeted counties include targeted census tracts listed later in Appendix A.

Two details matter here. The Keystone Home Loan counts household income, meaning every adult who'll live in the home within a year, while Keystone Flex and HFA Preferred count only the qualifying income of the borrowers. And Keystone Flex's $212,000 ceiling is so high that most Pennsylvania households fit under it, which is why it's the usual route into K-DATE or K-FIT for buyers who've owned a home before.

How Far PHFA Help Goes in Pennsylvania's Biggest Counties

Pennsylvania's median owner-occupied home is worth $254,500, according to the Census Bureau QuickFacts data for 2020-2024. Grantsights analysis of PHFA's percentage-based loans against that figure puts K-FIT's 5% at $12,725, enough to cover a 3.5% FHA down payment ($8,908) with about $3,800 left toward closing costs. Keystone Advantage, capped at $6,000, covers only 2.4% of that same median, so it can't fully pay an FHA down payment anywhere in this table.

Calculation: percentages applied to each county's median value. FHA minimum down payment of 3.5% from HUD's loans page (opens in a new tab). PHFA only lets K-FIT and K-DATE pay the minimum required down payment and closing costs, so you won't receive the full 5% if your costs are lower. ACS medians lag 2026 prices.

Because K-FIT and K-DATE are percentages with no dollar cap, they scale with price in a way flat-dollar programs in other states don't. A Chester County buyer at the median would get about twice what an Allegheny County buyer gets. The catch is that the 5% is a ceiling, not a check: PHFA's Seller's Guide says K-FIT money can't fund more than the minimum down payment, and any extra must go to closing costs.

Local Help in Philadelphia, Pittsburgh and Allegheny County

The 3 largest local programs in Pennsylvania sit in the state's 2 biggest counties, and as of November 3, 2026, one of them has run out of money.

Philadelphia: up to $10,000 grant, plus new-construction help

According to the City of Philadelphia's Buy your first home page, Philly First Home offers a grant of up to $10,000 or 6% of the purchase price, whichever is less, for down payment or closing costs, and grants are given "while funding is available." You must repay it if you move or refinance before living in the home for 15 years. Rules from the city and PHDC:

• You can't have owned a home in the past 3 years.
• The home must be a single-family house or duplex in Philadelphia. Condos aren't eligible.
• You must finish one-on-one counseling with a City-funded housing counseling agency before you sign the agreement of sale. If you sign first, you're out.
• Household income can't exceed PHDC's chart: $85,900 for 1 person, $98,200 for 2, $110,500 for 3 and $122,700 for 4, per the Philly First Home page (opens in a new tab). PHDC doesn't print an effective date on the chart, so ask your counselor which year's figures apply.

PHDC's own summary of past awards lists an average sales price of $193,300 and an average household income of $60,858, so this is a program used mostly on modest rowhomes.

Philadelphia also runs Turn the Key, which, according to PHDC's Turn the Key page (opens in a new tab), pairs up to $75,000 in mortgage buydown help with the $10,000 Philly First Home grant for first-time buyers at or under 100% of area median income who buy a newly built home on city-owned land. Several neighborhoods are marked sold out, and the sign-up form doesn't guarantee a home or a waitlist spot. A third program, One Philly Mortgage, isn't open yet: PHDC says its guidelines and application process "are being finalized."

Pittsburgh: $5,000 or $7,500 deferred loan

The Urban Redevelopment Authority of Pittsburgh's Down Payment and Closing Cost Assistance page (opens in a new tab) offers up to $7,500 as a 0%, 5-year deferred loan to first-time buyers under 80% of area median income, and up to $5,000 as a 0%, 10-year deferred loan between 80% and 115%. No payments are due during the term if you meet the residency rules. Other conditions: the home must be in the City of Pittsburgh, you can't have more than $20,000 in liquid assets after closing, you can't owe county, city or school property taxes (a payment plan of at least 6 months counts), you need a HUD-certified first-time buyer course, and you pay a closing fee of 2% of the URA loan. Your lender, not you, submits the application, at least 21 business days before closing. The URA's older OwnPGH program closed to applications on July 25, 2024.

Allegheny County: 1st Home Allegheny is closed

Allegheny County's program offered $10,000 or $45,000 depending on income, but its program page (opens in a new tab) now says all funds have been allocated and applications are no longer accepted. The county says it helped 67 households in 2025 and 45 in 2026 as of October 30, and it points buyers to PHFA lenders instead. Older lender blogs still advertise the $45,000 figure as available.

Allentown, Erie, Reading and the suburbs

Grantsights didn't find a current city-run purchase grant posted on the official websites of Allentown, Erie or Reading, or a county-run program on Montgomery, Bucks or Delaware County sites, as of November 3, 2026. Buyers there will mostly rely on PHFA. Philadelphia-area buyers who could live on either side of the Delaware River can compare New Jersey's state help in our New Jersey first-time home buyer guide.

FHA, VA and USDA Loans Under PHFA

PHFA doesn't make its own loan types; 4 federal and conventional options sit under its programs. Its Keystone Government Loan wraps FHA, VA and USDA Rural Development loans with no PHFA income or price limits and no first-time buyer rule, and it can be paired with Keystone Advantage.

• FHA: a 3.5% minimum down payment, per HUD's loans page (opens in a new tab). PHFA's own pages list the same 3.5% for FHA loans under the Keystone Home Loan.
• VA: usually no down payment, according to the VA purchase loan page (opens in a new tab). PHFA also waives the Keystone Home Loan's first-time buyer rule for discharged veterans.
• USDA guaranteed loans: for rural addresses with household income up to 115% of median income, per USDA Rural Development (opens in a new tab). PHFA's Keystone Home Loan page notes RD loans aren't available in Philadelphia and Delaware counties and other major cities.

Our USDA housing grants guide covers the direct loan and repair side of USDA, and the national guide linked above compares all three loan types.

What PHFA Doesn't Tell You on Its Assistance Page

Grantsights compared PHFA's assistance page with its August 2026 Seller's Guide and its press releases and found 5 things that change the math for a buyer.

1. The recapture tax is covered. The Keystone Home Loan and its assistance loans are funded with tax-exempt mortgage revenue bonds, according to PHFA's October 7, 2026 release on a $478 million bond sale. That can trigger federal recapture tax if you sell within 9 years. Per the PHFA Seller's Guide (August 2026), the tax tops out at 6.25% of the mortgage amount or 50% of the gain, whichever is less, and then says PHFA "will reimburse any borrower who ever has to pay a Recapture Tax" on loans applied for since January 1, 2004.
2. The 8% K-DATE tier can run out. PHFA flags the 8% amount for loans of $150,000 or less as "subject to availability" but doesn't post when it's available. Ask your lender before you count on 8% instead of 5%.
3. Counseling isn't optional for assistance. The assistance page mentions counseling for scores under 680, but PHFA's "At a Glance" sheet (March 2026) says K-FIT, K-DATE and Keystone Advantage borrowers must complete it regardless of score. PHFA's homebuyer page says its counseling is free.
4. K-FIT and K-DATE need maximum financing. The Seller's Guide says K-FIT borrowers must use maximum PHFA financing, so you can't put a bigger down payment in and still take the forgivable loan.
5. You'll still put in your own money. The Keystone Home Loan and Keystone Flex require you to contribute the lesser of $1,000 or 1% of the loan amount on conventional and FHA loans, and the assistance loans can't cover that slice.

Common Mistakes and Red Flags for Pennsylvania Buyers

Almost every problem below happens at one moment: before the agreement of sale is signed, which is when Philadelphia counseling, PHFA lender choice and local deadlines all lock in.

• Signing the agreement of sale before Philly First Home counseling. This is the most common mistake in Philadelphia, and it can't be fixed afterward. PHDC requires counseling first.
• Assuming K-DATE is forgivable like K-FIT. The names sound alike, but K-DATE is due in full when you sell or refinance, even after 25 years. K-FIT disappears after 10.
• Underestimating the monthly cost of Keystone Advantage. A $6,000 loan at 0% over 10 years works out to $50 a month on top of your mortgage, for a decade.
• Counting on an expired county program. Allegheny County's money is gone. A red flag is any ad in late 2026 still promising its $45,000.
• Paying for "grant access." According to the FTC's government grant scams page (opens in a new tab), real agencies don't charge a fee to give you a grant, and requests to pay by gift card or wire are a sign of fraud. PHFA loans come through participating lenders and Philly First Home through City-funded counselors, so a stranger offering faster access is a warning sign. The URA's 2% closing fee on its own loan is a real, published charge; an upfront "processing fee" from a website isn't.

If you'll need repair money soon after buying an older Philadelphia or Pittsburgh home, our guide to home repair grants for low-income homeowners lists federal and local options.

How to Apply for PHFA and City Help, Step by Step

There are 6 steps, and in Philadelphia the second one has to come before you even make an offer.

1. Match your county limits. Use the table above. If you're over the Keystone Home Loan limit, check Keystone Flex's $212,000 statewide ceiling. Make sure every borrower has at least a 660 score if you want K-FIT, K-DATE or Keystone Advantage.
2. Take homebuyer counseling. Use PHFA's list of approved counseling agencies. In Philadelphia, choose a City-funded agency so the same session qualifies you for Philly First Home. In Pittsburgh, the URA requires a HUD-certified first-time buyer course.
3. Pick a PHFA participating lender. PHFA doesn't take applications itself. Ask the loan officer to compare K-FIT and K-DATE for your price and how long you expect to stay.
4. Line up local money. In Philadelphia, your counselor handles Philly First Home. In Pittsburgh, your lender sends the URA application at least 21 business days before closing.
5. Make an offer under the limits. Stay under your county's PHFA price cap, and for Philly First Home, stick to a single-family home or duplex, not a condo.
6. Close and keep the paperwork. PHFA's Seller's Guide says the K-FIT second mortgage closes in PHFA's name, and K-DATE is recorded in second lien position. Keep those notes; you'll need them when you sell or refinance.

For example, a couple in Philadelphia earning $90,000 buying a $240,000 rowhouse with an FHA Keystone Home Loan would need an $8,400 down payment (3.5%). They're under PHDC's $98,200 limit for two and PHFA's $147,200 Philadelphia limit. They'd put in their own $1,000 (the lesser of $1,000 or 1% of the loan), and K-FIT, at 5%, could supply up to $12,000 for the rest of the down payment and closing costs. Philly First Home could add up to $10,000, specifically the lower of $10,000 and 6% of $240,000 ($14,400), if their counselor confirms it can be combined. If they refinance in year 4, PHFA's Seller's Guide says unforgiven K-FIT funds must be paid off, which would be 60% of $12,000, or $7,200, and the city grant would be due too, because they refinanced before 15 years.

Compare a buyer in Pittsburgh at the same $240,000 price earning under 80% of area median income. The URA's $7,500 is due only if residency rules are broken during its 5-year term, so it's the better local deal for someone who expects to stay at least 5 years.

If PHFA or City Money Runs Out, or You're Turned Down

PHFA hasn't posted a funding shutoff for any of its 4 assistance products as of November 3, 2026, but local programs can stop without notice, as Allegheny County's did.

• If Philly First Home funding pauses: PHFA's K-FIT and K-DATE are still available citywide, and Philadelphia is a targeted county, so repeat buyers can use the Keystone Home Loan too.
• If your score is under 660: you can still get a Keystone Government or HFA Preferred loan with a 620 score and automated approval, plus the $500 PHFA Grant with HFA Preferred. A PHFA counselor can help you plan for 660.
• If you're over income: check Keystone Flex's $212,000 limit, or see our HUD income limits guide to understand how area median income bands are set.
• If you need to keep renting while you save: our rental assistance programs guide covers what's available, and our guide on how to apply for grants as an individual explains how to spot real offers.

Many county and city down payment programs in Pennsylvania are paid for with federal HOME funds; our HUD HOME program guide explains how that money reaches local agencies.

If you'd like help sorting which official programs fit your household, the free eligibility checker points you to the right official routes. It won't send you money or file applications for you.

Buyers looking at New York City suburbs or comparing states can also see the New York guide.

Sources

• PHFA, Assistance Loans for Home Purchase (opens in a new tab) (checked November 3, 2026)
• PHFA, Home Purchase Loans (opens in a new tab), Keystone Home Loan (opens in a new tab), Keystone Government Loan (opens in a new tab) and Keystone Flex with K-DATE (opens in a new tab) (checked November 3, 2026)
• PHFA, Homebuyers Start Here (opens in a new tab) (counseling)
• PHFA, Seller's Guide (opens in a new tab) (August 2026), Appendix A (opens in a new tab) (July 1, 2026), Appendix B (opens in a new tab) (June 13, 2026), Appendix F (opens in a new tab) (July 1, 2026)
• PHFA, Mortgage Programs At a Glance (opens in a new tab) (March 2026) and K-FIT flyer (opens in a new tab)
• PHFA, PHFA launches K-DATE (opens in a new tab) (May 1, 2026) and $478 million in bonds (opens in a new tab) (October 7, 2026)
• City of Philadelphia, Buy your first home (opens in a new tab)
• PHDC, Philly First Home (opens in a new tab), flyer (March 2026) (opens in a new tab), Turn the Key (opens in a new tab) and One Philly Mortgage (opens in a new tab)
• Urban Redevelopment Authority of Pittsburgh, Down Payment and Closing Cost Assistance Program (opens in a new tab) and URA Announces Closure of OwnPGH Applications (opens in a new tab) (July 25, 2024)
• Allegheny County, 1st Home Allegheny Program (opens in a new tab) (checked November 3, 2026)
• IRS, Instructions for Form 8828 (opens in a new tab)
• HUD, Loans (FHA) (opens in a new tab)
• VA, VA purchase loan (opens in a new tab)
• USDA Rural Development guaranteed loan rules (opens in a new tab), as they apply to buyers in Pennsylvania
• U.S. Census Bureau, QuickFacts: Pennsylvania and selected counties (opens in a new tab) and Chester, Lancaster, York, Berks and Lehigh counties (opens in a new tab) (median value of owner-occupied homes, 2020-2024; population estimates July 1, 2025)
• FTC, Government Grant Scams (opens in a new tab)