Are you a first-time homebuyer in Pennsylvania? If so, you may be wondering about the different programs available to you.

There are many different options out there and it isn’t easy to know which one is right for you. This blog post will discuss several home buyer programs and help you figure out which one is the best choice!

What Are Home Buyer Programs?

Homebuyer grants or programs are designed to help first-time buyers with the process of buying a home. These programs can offer assistance with the down payment, closing costs, and other financial aspects of buying a home.

Homebuyers are also educated on buying a home through these programs so that they are prepared for the journey ahead.

What Are the Different Programs or Grants Available?

Pennsylvania offers a few different programs for first-time homebuyers. Here are some of the most popular ones:

PHFA’s Keystone Government Advantage

The Pennsylvania Housing Finance Agency’s Keystone Government Advantage program, or K-Gov, is the first mortgage financing for FHA, VA, and USDA loan products.

The PHFA Keystone Government Loan Program enables buyers to borrow down payment money using a Keystone Government Assistance Loan. This assistance loan has no interest and a maximum amount of $6,000 available.

Keystone Forgivable in Ten Years Loan Program (K-FIT)

The Keystone Forgivable in Ten Years Loan Program (K-FIT) was established to provide a second loan with a 10% forgivable rate over ten years.

You can borrow up to 5% of the sales price or appraised value, but with certain conditions. A borrower must have a credit score of at least 660 and less than $50,000 in liquid assets to qualify.

HFA Preferred loan

Seasoned and first-time homebuyers who want a 30-year, fixed-rate loan with a down payment of as little as 3% may want to consider the Pennsylvania Housing Finance Agency’s HFA Preferred loan.

There are no first-time homebuyer requirements, making it an excellent option for all Pennsylvania homebuyers.

However, not all properties will qualify. For example, duplexes and condos are not eligible. Planned urban developments (PUDs) can be eligible if the development meets Fannie Mae standards.

HOMEstead Down Payment and Closing Cost Assistance Loan

The Pennsylvania Housing Finance Agency (PHFA) also offers the HOMEstead Down Payment and Closing Cost Assistance Loan that lets borrowers borrow $10,000 as a no-interest, long-term loan.

This type of loan is similar to K-Fit, but the main difference is that the HOMEstead loan is forgiven yearly for five years. This means that your loan balance will be reduced by 20% each year for five years, even if you don’t make any payments!

Bottom Line

Buying a home is a big decision, and there are many factors to consider, especially if you are a first-time homebuyer. Pennsylvania offers many different programs to help with the process, and it is essential to do your research to figure out which one is best for you.

Your Home Hero can help if you struggle to find the right program for you, if you’re looking for a Pennsylvania real estate agent, or if you have any questions about the process of buying a home in Pennsylvania. We would be happy to help you on your journey to homeownership! Give us a call today.