Get Funds For Your Down Payment
If you’re looking for down payment assistance in Pennsylvania, aid is currently available. The Pennsylvania Housing Finance Agency (PHFA) offers a grant of up to $10,000 for first time property purchasers who need help coming up with the funds for the down payment.
The grant is provided in the form of a “soft loan” that is forgiven over time:
Homebuyers eligible for the HOMEstead program may qualify for up to $10,000 in downpayment and closing cost assistance in the form of a no-interest, second mortgage loan. HOMEstead funds are forgiven at 20 percent per year over five years for all loans closed on or after January 1, 2007. The minimum loan amount is $1,000. The first mortgage is provided by PHFA at the same rate as the Keystone Home Loan program.
HOMEstead borrowers must meet the minimum downpayment requirement based on whoever is insuring or guaranteeing the loan. HOMEstead funds may provide the remainder of the downpayment 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 HOMEstead Program income and home purchase price limits that vary by county. Most major cities and seven counties are wholly excluded from the program because they receive their own federal allocation. Eligible areas are noted on the limits above. The home must also 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. Therefore, most homes built prior to 1978 are not eligible for HOMEstead assistance.
To get complete details and to get the application process started, please visit the PHFA webpage.
More Pennsylvania Down Payment Assistance
In addition to this statewide down payment assistance program, you should also check to see if there are additional local first time home buyer programs offered in Pennsylvania that provide additional help which can be applied toward your down payment.