Down payment assistance in Pennsylvania
Pennsylvania's primary statewide down payment assistance program, run by Pennsylvania Housing Finance Agency (PHFA). Numbers and eligibility reflect the program's published 2025 guidelines.
Keystone Advantage Assistance
Second mortgage- Maximum assistance
- Up to 4% of purchase price (cap $6,000) as a 10-year second
- Income limit
- Up to $134,560
- Home price limit
- Up to $451,176
- First-time buyer
- Preferred (some products)
- Eligible loan types
- FHA, VA, USDA, Conventional
- •0% interest, 10-year amortizing second lien - payment included in DTI.
- •K-FIT (Keystone Forgivable in Ten) provides up to 5% forgivable over 10 years.
How Pennsylvania DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Pennsylvania's Keystone Advantage Assistance pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Pennsylvania's primary statewide DPA is Keystone Advantage Assistance from Pennsylvania Housing Finance Agency (PHFA). Up to 4% of purchase price (cap $6,000) as a 10-year second. Many Pennsylvania cities and counties also run additional DPA layered on top.
Some product variants are first-time-buyer only; others are open to repeat buyers. Check the agency page for the current matrix.
Yes. Keystone Advantage Assistance works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.