First Time Home Buyer
Programs in Pennsylvania
Complete First Time Home Buyer Programs Available in
Pennsylvania.
The state agency created by the legislature in Pennsylvania to
offer first time home buyer programs is the Pennsylvania Housing Finance Agency.
Here is a summary of the current first time home buyer programs that are
offered:
HOMEstead Down payment and Closing Cost
Assistance Loan
Homebuyers eligible for the HOMEstead program may qualify for up to $15,000 in
down payment and closing cost assistance in the form of a no-interest, second
mortgage loan. Repayment of this loan is required only upon full repayment of
the first mortgage, sale, transfer, refinance, or non-owner occupancy. The
minimum loan amount is $1,000. The first mortgage is provided by PHFA at the
same rate as the Keystone Home Loan PLUS program. A fee of one percent plus $300
is applicable, but may be financed by the HOMEstead loan.
Borrowers must have sufficient funds to make a down payment of at least three
percent of the purchase price. HOMEstead funds provide the remainder of the down
payment and the closing costs. In certain cases, based upon family need, the
funds may provide additional down money to make the property affordable to the
buyer.
Keystone Home Loan Program
Keystone Home Loan PLUS Program
Purchase Improvement Loan
PHFA's Purchase Improvement loan allows buyers who qualify for a Keystone Home
Loan or a Keystone Home Loan PLUS to purchase and improve/repair a home within
one transaction. Eligible buyers may include between $1,000 and $15,000 for
repairs and/or improvements with a conventional PHFA first mortgage, as long as
the 'As Completed' appraised value supports the cost of the repairs. This allows
the buyer to make needed repairs right away, without having to take out another
loan at a higher rate and with a shorter repayment period.
PHFA-RHS Joint Financing Program
This program provides 100 percent financing to families in rural Pennsylvania
who are first-time homebuyers and fall at or below the program income limit.
Funding is provided through a partnership between PHFA and the Rural Housing
Service (RHS) of the United States Department of Agriculture.
For complete details on these first time home
buyer programs available to Pennsylvania residents, visit the
Pennsylvania Housing Finance
Agency website.
It is highly recommend that you also visit the
First Time Home Buyer Grants page
for free assistance with the down payment. This will make it possible for many
people to qualify for a first time home
buyer loan who wouldn't have qualified without the grant assistance.
Best Lender For First Time Home Buyer Loans
Unfortunately, some lenders do not like
to work with first time home buyers (due to not having a track record), and prefer instead to only provide
mortgages to people who have previously owned a home.
If you do not need help with the down payment and are not
in need of any state program, search for a
lender that has great rates, an easy online application, and welcome first
time home buyers. Additionally find one that has not been as severely hurt by the
subprime mortgage crisis and are still approving the majority of applications.
Other First Time Home Buyer Programs & Resources
