First-Time Homebuyer Grants To Know About In PA

First-time Homebuyers Buying a Home

Still Dreaming of a Dream Home?

Are you waiting patiently for the stars to align to make your dream of homeownership a reality? Chances are, you don’t have to hope for long. There are first-time homebuyer grants available that can help you finally take the next step toward your owning your very first home.

Owning a property is vastly different from renting or living with others. And that prospect alone can be both intimidating and enticing. Financial obligations can also play a role in the stress associated with buying a home. Most people suggest the only way to move forward is with a 20% or higher down payment sitting in the bank. Coming up with that amount of savings can be incredibly daunting for some individuals and families. Then adding in closing costs and additional fees, it can seem practically impossible to become a homeowner.

Despite how difficult it can seem, there are first-time homebuyer grants and programs, specific to Pennsylvania residents, that can help. Finding an affordable mortgage rate, reasonable down payment amounts, and not-so-scary closing costs is actually quite feasible. 

The PA Housing Finance Agency, or PHFA, has several available mortgage programs and purchase assistance programs worth exploring. Eligibility requirements, including income, credit, and location, will vary for each program. To help you understand each available assistance program, we have put together a general overview and introduction.

For more detailed information regarding requirements, terms, and conditions, you can explore https://www.phfa.org/homebuyers/

First Front Door (FFD)

First Front Door can help those looking to buy their first home by offsetting closing costs as well as down payments. For every dollar you can contribute, participating FFD institutions will offer three dollars in assistance matching, up to $5,000. To learn more about how to make FFD work for you or to see how you can qualify, contact or visit an FFD provider and ask specifically about the First Front Door grant.

PHFA’s New K-FIT Program

The Pennsylvania Housing Finance Agency is launching a new program called the Keystone Forgivable in Ten Years Loan Program (K-FIT.) This unique assistance platform is designed to offer a loan with a forgivable rate of 10% over ten years. The program allows you to pay off the balance when you sell the home, never make a payment, earn $5,000 of assistance or 5%, and is based on a zero percent interest model. There are some requirements, including a minimum 660 credit score, and these loans are considered on a person-by-person basis. Approval will also be determined within certain debt-to-income parameters along with a 401K and a bank account.

HFA Preferred (Lo MI)

This unique assistance program works to help homebuyers acquire low-cost, private mortgage insurance (PMI.) This is often a huge help, specifically for first-time homebuyers who might be required to pay their PMI out-of-pocket, generally if their down payment is less than 20%.

Keystone Home

This first-time homebuyer grant is additionally applicable for veterans and those looking for homes within certain Pennsylvania counties. For those who qualify with the income and purchase price benchmarks, conventional mortgages, FHA loans, VA loans, or USDA loans are attainable with little to no down payment at all.

Keystone Government Loan (K-Gov)

This program works a little differently in that it provides assistance to lenders and brokers, allowing them to extend mortgages to first-time homebuyers. These mortgage loans are insured and backed by the FHA, VA, or the RD, reducing the lenders' risk of financing those without mortgage history. Anyone can apply who is looking to buy their first home.

Keystone Advantage Assistance Loan Program

Another grant that can be incredibly helpful in realizing your homeownership dreams is the Keystone Advantage Assistance Loan Program. The platform allows buyers to take out a second mortgage immediately to help cover down payment requirements or closing costs. These loans could be up to 4% of the home’s price, or $6,000.

The HOMEstead Down Payment and Closing Cost Assistance Loan

For other first-time homebuyers who meet specific requirements, they, too, can potentially qualify for the HOMEstead Down Payment and Closing Cost Assistance Loan. This program, similar to the Keystone Advantage Assistance Loan Program, provides an opportunity for a second mortgage. This loan is offered with no interest. 

ACCESS Home Modification Program

For any first-time homebuyers with a disability within the household can qualify for these programs. In addition to potentially being eligible for the other available grants, the ACCESS Home Modification Program provides mortgage loans that can be used for accessibility modifications. Make your dream home perfect with proper door widths, lifting devices, and spacious hallways using this program.

Don’t let the finances intimidate you or get in your way of becoming a homeowner. If crunching the numbers has left you waiting indefinitely, check into some of the first-time homebuyer grants. You could be house-hunting next week. And many of the obstacles blocking your path to buying a home could be lifted. For more help with resources and embarking on your first-time home buying journey, let the professionals at Homeway Real Estate help turn your dream into a dream home reality.

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