You don’t need 20% down to buy your first home in Pennsylvania. The Pennsylvania Housing Finance Agency (PHFA) offers loan programs and down payment help that make homeownership possible for many Pittsburgh renters. Here’s a plain-English overview.

PHFA loan programs

• Keystone Home Loan: a PHFA loan for buyers within income and purchase price limits. The first-time buyer requirement varies by county and is waived for some buyers, such as veterans.
• Keystone Government Loan: an FHA, VA or USDA loan through PHFA with no PHFA income or purchase price limits.
• HFA Preferred: a conventional loan with reduced mortgage insurance.

Down payment and closing cost help

• Keystone Advantage Assistance: up to 4% of the price or $6,000, whichever is less. A 0% interest second loan repaid over 10 years.
• K-FIT: 5% of the lesser of the price or appraised value, forgiven 10% per year over 10 years. Pairs only with the Keystone Home Loan.
• K-DATE: 8% for loans of $150,000 or less, or 5% above that, at 0% interest and repaid when you sell or refinance.
• PHFA Grant: $500 toward closing costs with an HFA Preferred loan.

Do you qualify?

• A credit score of at least 660 is generally needed to add PHFA down payment assistance.
• Homebuyer education is required if your score is below 680, and PHFA offers free courses.
• The home must be your primary residence, and you’ll work with a PHFA-participating lender.

Program terms and limits change, so confirm current guidelines with a PHFA lender before you shop.

What a first home can cost each month

On a $250,000 home with 3.5% down using an FHA loan, principal, interest, taxes, insurance and mortgage insurance typically land around $2,000 to $2,200 a month at today’s rates. That’s close to the median lease of about $2,700 in our West Penn Multi-List data.

Your next steps

1. Check your credit and aim for 660 or higher.
2. Take a homebuyer education course.
3. Get pre-approved with a PHFA-participating lender.
4. Pick your target communities and start touring with us.

For financing questions, see the condo financing page on MyPittsburghCondo.com.

Questions? Call The EZ Home Network at 724-933-8500. We’ll connect you with a PHFA-approved lender and start your search the same day.