Guides / Down Payment Assistance / Pennsylvania

Down Payment Assistance in Pennsylvania

Pennsylvania's state-level down payment assistance is administered entirely through the Pennsylvania Housing Finance Agency (PHFA), which pairs a first mortgage (Keystone Home Loan, Keystone Government Loan, HFA Preferred, or Keystone Flex) with a second-mortgage assistance product. Verified directly from phfa.org, the main options are the Keystone Advantage Assistance Loan (repayable, up to 4%/$6,000), K-FIT (forgivable over 10 years, 5% of price/value), K-DATE (deferred zero-interest, 8% on loans up to $150,000 or 5% above that), and HOMEstead (forgivable over 5 years, up to $10,000, first-time-buyer only, for older/lower-value homes). Nearly all require a minimum 660 credit score, cap liquid assets at $50,000 post-closing, cannot be stacked with each other, and are subject to PHFA's county-by-county income and purchase price limits (which vary widely — e.g., higher limits in Philadelphia/Pittsburgh than rural counties) — buyers should confirm exact current limits for their specific county at phfa.org since PHFA updates these figures periodically.

Programs

Keystone Advantage Assistance Loan
Pennsylvania Housing Finance Agency (PHFA)
Amount: Up to 4% of the home's purchase price/market value or $6,000, whichever is less; 0% interest, amortized over a 10-year term (repaid monthly), $500 minimum loan
Type: Second mortgage / repayable no-interest loan
Must be used with a PHFA first mortgage (Keystone Home Loan, Keystone Government Loan, or HFA Preferred); minimum credit score 660 for all borrowers; liquid assets cannot exceed $50,000 after funds needed to close are deducted; cannot be combined with other PHFA down payment/closing cost assistance programs (except the Access Modification Loan Program); PHFA income and purchase price limits apply via the paired first mortgage
Keystone Forgivable in Ten Years Loan Program (K-FIT)
Pennsylvania Housing Finance Agency (PHFA)
Amount: 5% of the lesser of the purchase price or appraised value, with no stated maximum dollar cap; 0% interest; forgiven at a rate of 10% per year over 10 years (fully forgiven if borrower stays 10 years)
Type: Forgivable second mortgage
Paired with Keystone Flex conventional or FHA first mortgage; minimum credit score 660; liquid assets cannot exceed $50,000 after closing costs; borrower still contributes a small down payment (lesser of $1,000 or 1% of the loan amount); PHFA income/purchase price limits apply
Keystone Flex – K-DATE (Keystone Due At Time of Expiration)
Pennsylvania Housing Finance Agency (PHFA)
Amount: 8% of purchase price/appraised value for loans of $150,000 or less, or 5% for loans over $150,000; 0% interest; no monthly payments — full amount due upon sale, refinance, or payoff of the first mortgage (effectively over a 30-year term)
Type: Deferred-payment second mortgage
Paired with Keystone Flex conventional or FHA first mortgage; minimum credit score 660; liquid assets cannot exceed $50,000 after closing costs; PHFA income/purchase price limits apply
HOMEstead Downpayment and Closing Cost Assistance
Pennsylvania Housing Finance Agency (PHFA), via HFA Preferred first mortgage
Amount: Up to $10,000, 0% interest, second mortgage forgiven at 20% per year over 5 years; $1,000 minimum loan
Type: Forgivable second mortgage
Must be a first-time homebuyer (or not have owned in the past 3 years); home must have been built (or had a certificate of occupancy issued) at least prior to a set cutoff (older housing stock, generally built before 1978, subject to lead-safety rules); county-specific income and purchase price limits apply; cannot be combined with other PHFA assistance programs

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in PennsylvaniaTransfer Tax & Closing Costs in PennsylvaniaBuyer-Agent Agreements in PennsylvaniaSeller Disclosure Laws in PennsylvaniaFind Agents in PennsylvaniaDown Payment Calculator