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, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have 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