Unlocking Homeownership: Comprehensive Grants for First-Time Homebuyers in Pennsylvania

Buying your first home can be an exciting yet overwhelming process, especially when it comes to finding ways to make it affordable. Fortunately, there are several grants and assistance programs available for first-time homebuyers in Pennsylvania that can help make homeownership a reality. These programs offer financial aid in the form of grants, closing cost assistance, and down payment help. Below is a list of grants and assistance programs currently available to first-time buyers in Pennsylvania:

Grants and Assistance Programs Available in PA

• Pennsylvania Housing Finance Agency (PHFA) Keystone Advantage Assistance Loan Program
• Provides up to $6,000 as down payment or closing cost assistance.
• Available for borrowers with a PHFA first mortgage.
• HOMEstead Downpayment and Closing Cost Assistance Loan
• Offers up to $10,000 in down payment and closing cost assistance.
• Loan is forgiven over a five-year period, provided the homeowner stays in the home.
• K-FIT (Keystone Forgivable in Ten Years Loan Program)
• Provides up to 5% of the lesser of the purchase price or appraised value as down payment and closing cost assistance.
• Forgiven over ten years, with no repayment required if eligibility requirements are met.
• FHA, USDA, and VA Loan Programs
• Offer down payment assistance and more lenient credit requirements.
• PA-based grant programs can often be paired with these loan types for added affordability.
• First Front Door Program
• Offers a grant of up to $5,000 to qualified first-time homebuyers.
• You must match the grant with your own savings; for every $1 you contribute, $3 is provided.

For more detailed information on these grants and eligibility requirements, visit the Pennsylvania Housing Finance Agency (PHFA) website.

These programs can help you bridge the gap between renting and owning by providing essential financial assistance. Whether you need help with a down payment or closing costs, there is likely a program to fit your needs as a first-time homebuyer in Pennsylvania.

More Grants and Assistance Programs for First-Time Buyers in PA

In addition to the Pennsylvania Housing Finance Agency programs, several other grants and assistance programs are available from different agencies and organizations, providing even more opportunities for first-time homebuyers in Pennsylvania:

• Community Development Block Grant (CDBG) Program
• Funded by the U.S. Department of Housing and Urban Development (HUD).
• Provides funding to local governments for affordable housing initiatives, including down payment assistance for low- to moderate-income first-time buyers.
• Availability and amount vary by municipality, so check with your local city or county government for opportunities.
• Neighborhood Assistance Program (NAP)
• Offers tax credits to businesses that invest in affordable housing initiatives, which can help first-time buyers indirectly by funding community housing projects.
• This program is administered through the Pennsylvania Department of Community and Economic Development (DCED).
• Federal Home Loan Bank (FHLB) Affordable Housing Programs
• The First Front Door (FFD) program, offered through FHLB, provides eligible first-time buyers with a grant of up to $5,000 to assist with a down payment and closing costs.
• Participating lenders and financial institutions provide the funding, so buyers need to work with a participating bank.
• Local Housing Authorities
• Various local housing authorities across Pennsylvania offer down payment assistance programs and grants.
• Examples include the Philadelphia Housing Development Corporation (PHDC), which offers the Philly First Home program that provides up to $10,000 (or 6% of the home purchase price) to assist first-time buyers with down payments and closing costs in Philadelphia.
• U.S. Department of Agriculture (USDA) Loans and Grants
• The USDA offers loans and grants to promote homeownership in rural areas of Pennsylvania.
• Eligible buyers can receive 100% financing, and grants can help cover closing costs or home repairs.
• Good Neighbor Next Door Program (HUD)
• This HUD program offers a 50% discount on the list price of a home for teachers, law enforcement officers, firefighters, and emergency medical technicians in designated revitalization areas.
• Buyers must commit to living in the home for at least 36 months.
• Housing Counseling Agencies
• Non-profit agencies in Pennsylvania, like NeighborWorks America affiliates, may offer grants or forgivable loans to assist with down payments or closing costs.
• These agencies often provide educational courses, which can be a requirement for qualifying for other grant programs.

For more information, visit:

• Pennsylvania Department of Community and Economic Development (DCED)
• Philadelphia Housing Development Corporation (PHDC)
• Federal Home Loan Bank (FHLB)

With a combination of state, federal, and local grants, first-time buyers in Pennsylvania can save up to $31,000 or more. Whether you're looking to reduce down payment costs, get closing cost assistance, or find affordable financing options, these programs are designed to help make your dream of homeownership come true.

Authored by:  Armand Gjeka, Realtor

Sources:

-https://phdcphila.org

-https://www.phfa.org

-https://dced.pa.gov/

-https://www.fhlb.com/