First-Time Homebuyer Grants To Know About In PA

First-time Homebuyers Buying a Home

Is it your dream to own a house, but you aren’t sure how to make it a reality? 

Many first time home buyers know that owning property is different from renting or living with friends and family, and the prospect of having a place of one’s own is both enticing and intimidating.

In fact, for first-time homebuyers, the financial obligations can feel stressful. People who’ve owned a home in the past often have enough money from the sale of their previous house to make a 20 percent or higher down payment on a new purchase. This down payment, in addition to closing costs, can be difficult for first time homeowners to pay and is often an obstacle in buying a house for the first time.

Fortunately, there are first-time homebuyer grants and programs in PA that can help you obtain an affordable mortgage or assist you with down payments and closing costs.

The PA Housing Finance Agency, or PHFA, has several mortgage programs and purchase assistance programs. Eligibility requirements, such as income, credit, and location, differ for each program.

The following overview can help you understand each type of program. For more details about requirements and terms and conditions, make sure to visit

HFA Preferred (Lo MI)

HFA Preferred (Lo MI) helps homebuyers get low-cost private mortgage insurance or PMI. This is particularly helpful for first-time homebuyers who may be required to pay PMI if their down payment is less than 20 percent.

Keystone Home

Keystone Home is a loan program for first-time homebuyers, veterans, and buyers looking for houses in certain PA counties. If you qualify based on income and purchase price limits, you could be eligible for a conventional mortgage, FHA loan, or VA or USDA loan with a low or no down payment.

Keystone Government Loan (K-Gov)

The Keystone Government Loan (K-Gov) helps lenders and brokers provide affordable mortgages to homebuyers by offering to finance on loans insured or guaranteed by the FHA, RD, or VA. First-time homebuyers can apply for this program.

Keystone Advantage Assistance Loan Program

Keystone Advantage Assistance Loan Program allows buyers to take out a second mortgage that they can use toward a down payment or closing costs. You could receive a loan for up to 4 percent of the home price or $6,000.

The HOMEstead Downpayment and Closing Cost Assistance Loan

THe HOMEstead Downpayment and Closing Cost Assistance Loan provide a no-interest second mortgage to buyers who meet income and home price limits.

ACCESS Home Modification Program

If you or a household resident have a disability, you can qualify for the previously listed programs, and might also qualify for mortgage loans to help you afford accessibility modifications, such as lifting devices and widening doorways or hallways.

If finances have been standing in the way deciding to purchase your first home, it’s nice to know that first-time homebuyer grants in PA could help make a new house more affordable. Let Homeway Real Estate help you find that perfect home.

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