Pennsylvania First Time Home Buyer Assistance

Homebuyers eligible for the HOMEstead program may qualify for up to $10,000 maximum  to $1,000 minimum in down payment and closing cost assistance in the form of a no-interest, second mortgage loan. The loans are forgiven at 20 % per year over 5 years.  The first mortgage is provided by PHFA at the same rate as the Keystone Home Loan PLUS program.  A fee of 1 % plus $300 is applicable, but may be financed by the HOMEstead loan.

You must have money to make a down payment of at least 3 % of the purchase price, or $1,000 if your credit score is at least 660. HOMEstead funds provide the remainder of the down payment and the closing costs.  In certain cases, based upon family need, the funds may provide additional down money to make the property affordable to the buyer.

Buyers participating in PHFA’s Keystone Home Loan Program are eligible to apply if they meet certain income limits and home cost limits which vary by county.  Most major cities and seven counties are wholly excluded from the program because they receive their own federal allocation.  The home must meet other property guidelines specified by federal rules. Federal regulations for Lead-Based Paint Hazard Reduction (24 CFR Part 35) are applicable to HOMEstead Second Mortgage Program applicants.

PHFA homeownership loan programs are made by local lending institutions, not by the Agency itself. PHFA HOMEstead funding is therefore allocated to eligible homebuyers on a first-come, first-served basis.

Contact me for more information.  Are you ready to start looking for your dream home?