Pennsylvania offers a powerful mix of homebuyer assistance: state-backed loans like K-FIT and Advantage through PHFA, plus local grants in cities like Philadelphia, Pittsburgh, and Harrisburg. This 2025 guide from Federal Hill Mortgage covers eligibility, program benefits, and how to apply—all in one place.
Looking for all buyer programs (not just first-time)? See our full PA homebuyer guide.
What Assistance is Available for First-Time Homebuyers in PA?
Pennsylvania supports first-time buyers through PHFA (state-level loans and grants) and local city programs. These can reduce upfront costs, offer forgivable assistance, or provide below-market-rate loans.
Statewide Homebuyer Programs via PHFA
Keystone Home Loan
- Benefit: Fixed-rate PHFA mortgage
- Who it’s for: First-time buyers or those in target areas
- Apply through: Federal Hill’s eligibility form
Keystone Government Loan Program (K-Gov)
K-FIT Forgivable Loan
- Amount: Up to 5% of the home’s value
- Terms: Fully forgiven after 10 years
- Use: Covers down payment or closing costs
Advantage Assistance Loan
- Amount: Up to $6,000
- Terms: Deferred second loan; repay only if you sell, refinance, or transfer
- Combine with: Keystone Loan + K-FIT
HOMEstead & ACCESS Programs
- HOMEstead: For rural, underserved areas
- ACCESS: For homebuyers needing accessible housing features
City & County-Level Programs in PA
Philly First Home Grant
- Grant: Up to $10,000
- Eligibility: Must meet income limits and take a homebuyer education course
- Info: phdcphila.org
Pittsburgh URA Programs
- Grants: $3,000–$7,500
- Programs: Housing Opportunity Fund, Closing Cost Assistance
- Target: Moderate-income residents via URA-partnered counselors
Harrisburg & Central PA Grants
- Available through local authorities (e.g., Dauphin, Cumberland counties)
- Often range from $3,000–$7,000 via housing nonprofits
How to Apply for a PA First-Time Buyer Program
- Pre-qualify with Federal Hill Mortgage
- Take required homebuyer education (if needed)
- Choose programs: K-FIT, Advantage, local grants
- Gather documents: ID, income, credit, assets
- Submit applications via your lender
- Close escrow and move in!
FAQs: PA First-Time Buyer Programs
What is the PHFA?
PHFA is the Pennsylvania Housing Finance Agency. It offers affordable loans and down payment assistance to eligible homebuyers statewide.
How does the K-FIT loan work?
It’s a forgivable second loan up to 5% of the home price. It’s forgiven after 10 years if you live in the home and don’t refinance or sell.
Can I combine PHFA with city grants?
Yes—buyers often stack Keystone + K-FIT + Philly First Home for maximum assistance.
What if I owned a home in the past?
If you haven’t owned one in the last 3 years, you’re still considered a “first-time buyer.”
Does Federal Hill Mortgage help with PHFA loans?
Yes! We’re an approved PHFA lender helping buyers navigate and apply for all available state and local programs.
Program Comparison Table
PROGRAM | TYPE | AMOUNT | REPAYMENT TERMS |
|---|---|---|---|
K-FIT | Forgivable Loan | Up to 5% | Forgiven after 10 years |
Advantage Loan | Deferred Loan | Up to $6,000 | Due at refinance or sale |
Philly First Home | Grant | Up to $10,000 | No repayment |
Pittsburgh URA Grant | Grant | $3,000 - $7,500 | No repayment |
Ready to Buy Your First Home in PA?
At Federal Hill Mortgage, we help first-time buyers qualify for PHFA and local assistance programs—maximizing your savings at every step.
- Start your pre-approval
- Explore FHA Loan options
- Browse our blog for more state-by-state guides
