Overview
Pennsylvania's housing market offers opportunities for first-time buyers, with a median home price of approximately $260,000. The Pennsylvania Housing Finance Agency (PHFA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The Keystone Advantage Assistance Loan is a pennsylvania housing finance agency's key offering for first-time buyers, providing up to $6,000 as a 0% interest, 10-year second mortgage. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
Keystone Advantage Assistance Loan
Down payment and closing cost assistanceHFA Preferred (K-FIT) Program
Forgivable down payment assistanceFederal Programs Available in Pennsylvania
These nationwide programs can be combined with Pennsylvania state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Pennsylvania
The HFA Preferred (K-FIT) Program extends additional support through up to 5% of the purchase price as a forgivable second mortgage (forgiven after 5 years). Pennsylvania has a flat income tax of 3.07%, one of the lowest in the nation. Property taxes average about 1.53%. PHFA programs provide essential DPA for the state's diverse housing market.
Federal programs complement state offerings in Pennsylvania. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near multiple military installations. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Pennsylvania.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.