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Down Payment Assistance in Pennsylvania: Programs, Limits and How to Apply

In Pennsylvania, the Pennsylvania Housing Finance Agency (PHFA) offers a $500 grant, a Keystone Advantage Assistance Loan of up to 4% or $6,000 (whichever is less), and two larger second mortgages: K-FIT at 5% forgiven over ten years, and K-DATE at 8% or 5% due when you sell, refinance or pay off the first mortgage. PHFA does not take applications. You apply through a participating lender.

Facts read from the agency pages on October 15, 2026. Programs, limits and funding change, so confirm with the agency and a participating lender before you rely on a figure.

Who runs down payment assistance in Pennsylvania?

Pennsylvania Housing Finance Agency (PHFA)

Which Pennsylvania programs offer down payment help?

PHFA Grant

Administered by PHFA.

What it offers: A $500 grant toward down payment and closing costs.
Repayment: It does not require repayment.
Works with: The HFA Preferred (Lo MI) loan only. HFA Preferred has no first-time buyer requirement and requires at least $1,000 from your own funds.
Who qualifies: The primary residence you buy must fall within the HFA Preferred income limit for your county, which PHFA sets at no more than 80% of area median income. PHFA has no purchase price limit for this loan. The page states no minimum credit score.
Availability: PHFA says funds are available year round for its loans in general. No closure notice was found.

Keystone Advantage Assistance Loan

Administered by PHFA.

What it offers: Up to 4% of the purchase price or market value, or $6,000, whichever is less, for down payment and closing costs. The minimum is $500.
Repayment: A 0% second mortgage repaid monthly, amortized over ten years.
Works with: HFA Preferred, Keystone Government or Keystone Home first mortgages, which may be conventional, FHA, VA or USDA Rural Development loans.
Who qualifies: All borrowers need a credit score of at least 660, and liquid assets after closing may not be more than $50,000. You must meet the income and price limits of the first mortgage program. The assistance can only be used for the minimum required down payment and closing costs.
Availability: No closure notice was found.

Keystone Forgivable in Ten Years (K-FIT)

Administered by PHFA.

What it offers: 5% of the lesser of the purchase price or appraised value, with no maximum dollar limit.
Repayment: A forgivable second mortgage, forgiven annually at 10% a year over ten years.
Works with: The Keystone Home loan, which may be conventional, FHA, VA or USDA Rural Development. PHFA's lender documents also list Keystone Flex.
Who qualifies: All borrowers need a credit score of at least 660, and liquid assets after closing may not be more than $50,000. Keystone Flex has no first-time buyer requirement but needs approved homebuyer education.
Availability: No closure notice was found.

Keystone Due At Time of Expiration (K-DATE)

Administered by PHFA.

What it offers: 8% of the lesser of the purchase price or appraised value on loans up to $150,000, subject to availability, and 5% on loans of $150,001 or more. There is no maximum dollar limit.
Repayment: A 0% second mortgage over 30 years with no monthly payments, due when you sell, refinance or pay off the first mortgage.
Works with: The Keystone Home loan or Keystone Flex.
Who qualifies: All borrowers need a minimum FICO score of 660, and all borrowers must complete homebuyer education from an approved PHFA counseling agency.
Availability: PHFA says the 8% amount is subject to availability. No closure notice was found.

Access Downpayment and Closing Cost Assistance

Administered by PHFA.

What it offers: Up to $15,000 as a no-interest loan, for buyers with a disability or a household member with a disability.
Repayment: Due on sale, transfer or when the home stops being owner-occupied, according to PHFA's lender guide.
Works with: A Keystone Home, Keystone Government or HFA Preferred first mortgage, together with PHFA's Access Home Modification Program.
Who qualifies: Household income may not exceed 80% of the statewide family median income. PHFA's lender guide gives $84,800 for 2026.
Availability: PHFA's lender guide says it is first come, first served.

Employer Assisted Housing (EAH)

Administered by PHFA.

What it offers: Homebuyers who work for a participating EAH employer can receive a Keystone Advantage Assistance Loan of up to $8,000.
Repayment: An interest-free loan amortized over ten years.
Works with: A PHFA mortgage through a participating lender.
Who qualifies: You must meet the Keystone Advantage requirements, and your employer must participate. PHFA publishes a list of participating employers.
Availability: Depends on your employer's participation.

What are the income and price limits in Pennsylvania?

Each limit below is the range the agency published, as of the date shown.

Limit	Range	In effect	Source
Keystone Home loan household income limits	$106,000 to $147,200 for one- and two-person households, and $121,900 to $171,700 for three or more people, set by county	Effective for reservations on or after 7/1/2026	PHFA Keystone Home limits (Seller's Guide Appendix A, PDF)
Keystone Home loan purchase price limits	$499,900 to $730,600, set by county	Effective for reservations on or after 7/1/2026	PHFA Keystone Home limits (Seller's Guide Appendix A, PDF)
Keystone Flex limits	Income limit of $212,000 and purchase price limit of $730,600 in all counties	Effective for reservations on or after 7/1/2026	PHFA Keystone Flex limits (Seller's Guide Appendix F, PDF)
HFA Preferred (Lo MI) household income limits	$67,600 to $98,160, set by county, with no purchase price limits	Effective for locks made on or after 6/13/2026	PHFA HFA Preferred limits (Seller's Guide Appendix B, PDF)

How do I apply for down payment assistance in Pennsylvania?

Contact a PHFA-approved housing counselor and a participating lender. PHFA says it does not handle the mortgage application process, and lenders process and close the loans before PHFA buys them.
Work with the lender to apply for the first mortgage and the assistance together. PHFA's phone number is 1.855.827.3466.
Complete homebuyer education. PHFA requires a pre-closing course for borrowers with a FICO score below 680, in person when any borrower is below 680. Counseling before you sign a sales agreement is encouraged.
Ask the lender which first mortgage fits the assistance you want, because the assistance programs are tied to specific first mortgages.

Can I combine Pennsylvania assistance with gift funds or employer help?

Gift funds

For HFA Preferred, PHFA requires at least $1,000 from your own funds, and the remaining funds can come from an acceptable gift or assistance program. PHFA's lender guide says gifts and assistance programs may not count toward the minimum contribution requirement on FHA or conventional loans above 80% loan-to-value.

Employer help

PHFA's Employer Assisted Housing program lets employees of participating employers receive a Keystone Advantage Assistance Loan of up to $8,000, and PHFA's lender guide asks for written notice from the employer describing the benefit and its repayment terms.

Other assistance

PHFA says Keystone Advantage, K-FIT and K-DATE may not be combined with any other PHFA assistance program, except the Access Home Modification Loan Program, and that Access Downpayment assistance cannot be used with any other PHFA down payment or closing cost program. PHFA's text for the $500 grant says it can be combined with Keystone Advantage, which conflicts with that rule, so ask your lender which applies.

Gift rules also depend on your loan type. See what cash to close includes for how down payment and closing costs add up, and the down payment assistance guide for how gifts, employer help and assistance can fit together.

Which sources does this page rely on?

Every figure above comes from the agency pages below.

Source	Date
PHFA down payment and closing cost assistance	No page date shown, read October 15, 2026
PHFA Seller's Guide (lender manual, PDF)	Dated August 2026, read October 15, 2026
PHFA Keystone Home limits (Appendix A, PDF)	Effective 7/1/2026, read October 15, 2026
PHFA HFA Preferred limits (Appendix B, PDF)	Effective 6/13/2026, read October 15, 2026
PHFA Keystone Flex limits (Appendix F, PDF)	Effective 7/1/2026, read October 15, 2026
PHFA HFA Preferred loan	No page date shown, read October 15, 2026
PHFA Employer Assisted Housing	No page date shown, read October 15, 2026

Frequently asked questions

How much down payment assistance can I get in Pennsylvania?

PHFA offers a $500 grant, a Keystone Advantage Assistance Loan of up to 4% or $6,000 (whichever is less), K-FIT at 5% with no dollar cap, and K-DATE at 8% (loans up to $150,000, subject to availability) or 5%. Access Downpayment assistance is up to $15,000 for eligible buyers with a disability.

Which Pennsylvania assistance do I have to repay?

The PHFA Grant does not require repayment. Keystone Advantage is repaid monthly over ten years. K-FIT is forgiven at 10% a year over ten years. K-DATE has no monthly payments and is due when you sell, refinance or pay off the first mortgage.

What credit score does Pennsylvania down payment assistance require?

Keystone Advantage, K-FIT and K-DATE each require a minimum credit score of 660 for all borrowers. A FICO score below 680 also triggers a required pre-closing homebuyer course.

Do I have to be a first-time buyer in Pennsylvania?

It depends on the first mortgage. Keystone Home defines a first-time buyer as someone who has not owned their principal residence during the previous three years, with exceptions in targeted counties or areas and for discharged veterans. HFA Preferred, Keystone Government and Keystone Flex have no first-time buyer requirement.

Can I use employer help with Pennsylvania down payment assistance?

PHFA's Employer Assisted Housing program lets employees of participating employers receive a Keystone Advantage Assistance Loan of up to $8,000. Your employer must participate, and PHFA publishes a list of participating employers.

Down payment assistance in other states

Back to the down payment assistance guide.

See which down payment programs you may qualify for

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Disclosure: This content is for informational purposes only and does not constitute financial, legal, mortgage, or tax advice. Program rules vary by lender, location and loan. Dreamfund is not affiliated with any housing agency named here. Consult a licensed mortgage professional for guidance specific to your situation. Dream Fund AI LLC does not guarantee any savings outcome, loan approval, or home purchase result.