Down Payment Assistance
Down Payment Assistance in Pennsylvania (2026)
Pennsylvania homebuyers can access up to $6,000 in down payment assistance through the Pennsylvania Housing Finance Agency (PHFA). On the state's $288,056 median home price, that covers roughly 10% of a standard 20% down payment. Pennsylvania has 3 state DPA programs total.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The PHFA Keystone Advantage Assistance caps the home purchase price at $481,176 — check that cap against homes you're considering, and the county income limit below.
Primary Program: PHFA Keystone Advantage Assistance
maximum assistance
A low-interest second loan on your home (on top of your main mortgage) with its own monthly payments over a set term.
- Administering Agency
- Pennsylvania Housing Finance Agency (PHFA)
- Purchase Price Cap
- $481,176
Additional Pennsylvania DPA Programs
HOMEstead
Forgivable Loan$10,000
Forgiven over time if you remain in the home as your primary residence (the home you actually live in, not a rental or second home).
Apply / Learn MorePhiladelphia DPA
Forgivable Loan$10,000
Forgiven over time if you remain in the home as your primary residence (the home you actually live in, not a rental or second home).
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Pennsylvania median pre-loaded
Your Savings Plan
Timeline
9.7 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →What the Assistance Does on a $288,056 Pennsylvania Home
A worked example at Pennsylvania's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Pennsylvania salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $288,056 home is $28,806, and 20% is $57,611. The $6,000 PHFA Keystone Advantage Assistance maximum covers 21% of the first and 10% of the second, leaving $22,806 of a 10% down payment to come from savings, before any closing costs.
Whether a household under the income limit can carry it
Carrying the median home takes $85,243 a year with 20% down, or $97,757 with 10% down and PMI. The first-mortgage income limit at Pennsylvania Housing Finance Agency (PHFA) is $106,000 (Keystone Home Loan, 1 & 2 member households, lowest county limit (e.g., Berks, Lehigh, Erie, York); varies by county up to $147,200 (Philadelphia, target); 3+ member households $121,900–$171,700. Effective 7/1/2026.). (Pennsylvania Housing Finance Agency, retrieved 2026-09-14) A household at that limit clears both figures, so the median home sits inside the programme's range: incomes from $97,757 up to $106,000 can carry it with 10% down. At exactly $106,000, the same model supports a price of about $362,852, $74,796 above the median.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Pennsylvania
Realty Transfer Tax
Pennsylvania imposes a 1% state realty transfer tax on the value of real estate transferred, plus local transfer taxes that vary by municipality and school district; grantor and grantee are jointly and severally liable. (61 Pa. Code Chapter 91 (Realty Transfer Tax), as referenced by PA Department of Revenue). (Pennsylvania Department of Revenue, retrieved 2026-09-14) Under that schedule a $288,056 sale owes $2,881.
Local realty transfer taxes are collected along with the state tax by county Recorders of Deeds; the locals have the option to share their realty transfer tax among school districts and municipalities. (Pennsylvania Department of Revenue, retrieved 2026-09-14)
Pennsylvania Housing Finance Agency (PHFA): Keystone Home Loan Program
Keystone Home Loan Program is the first-mortgage programme run by Pennsylvania Housing Finance Agency (PHFA). (Pennsylvania Housing Finance Agency, retrieved 2026-09-14) Its purchase-price limit is $499,900 (Keystone Home Loan, lowest county limit (e.g., Berks, Lehigh, Erie, York); varies by county $499,900–$730,600 (Philadelphia target area), e.g., Bucks/Chester/Delaware/Montgomery $588,800, Allegheny $523,000. Effective for reservations on or after 7/1/2026.), so a $288,056 home is within it. (Pennsylvania Housing Finance Agency, retrieved 2026-09-14) The income limit is $106,000 (Keystone Home Loan, 1 & 2 member households, lowest county limit (e.g., Berks, Lehigh, Erie, York); varies by county up to $147,200 (Philadelphia, target); 3+ member households $121,900–$171,700. Effective 7/1/2026.). (Pennsylvania Housing Finance Agency, retrieved 2026-09-14) Down payment help comes through Keystone Advantage Assistance Loan Program: Up to 4% of the purchase price or market value or $6,000, whichever is less; second mortgage amortized over ten years at 0% interest. (Pennsylvania Housing Finance Agency, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Pennsylvania?
Pennsylvania's primary DPA program is the PHFA Keystone Advantage Assistance, administered by the Pennsylvania Housing Finance Agency (PHFA). It provides up to $6,000 as a repayable loan. A low-interest second loan on your home (on top of your main mortgage) with its own monthly payments over a set term. Additional programs include HOMEstead and Philadelphia DPA.
How much down payment do I need in Pennsylvania after using DPA?
On a $288,056 home (Pennsylvania median), a 20% down payment is $57,611. With the PHFA Keystone Advantage Assistance covering $6,000, your remaining gap would be $51,611. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Pennsylvania down payment assistance?
A low-interest second loan on your home (on top of your main mortgage) with its own monthly payments over a set term.
Can I combine Pennsylvania DPA with other assistance programs?
Yes — Pennsylvania's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Pennsylvania down payment assistance?
The PHFA Keystone Advantage Assistance does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Pennsylvania Housing Finance Agency (PHFA) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in Pennsylvania
PMI Calculator
Estimate private mortgage insurance on lower down payments
Pennsylvania First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in Pennsylvania, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Pennsylvania Housing Finance Agency (PHFA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Pennsylvania for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about PHFA Keystone Advantage Assistance when you apply.