HOMEstead Downpayment and Closing Cost Assistance Loan
Offered through the Pennsylvania Housing Finance Agency (PHFA), qualified applicants can receive between $1,000 and $10,000 in assistance towards the down payment and closing costs of a home purchase. This assistance is offered in the form of a second mortgage with no interest, and forgiven at the rate of 20% per year, which means that after 5 years, the loan is 100% forgiven.
To be eligible for HOMEstead Downpayment and Closing Cost assistance, applicants must match the minimum down payment required by the insurer or guarantor of their mortgage. After the requirement is paid, assistance can be used to cover the rest of the down payment and closing costs. However, in certain situations, it’s possible that additional assistance will be provided to help with further costs of the property.
Applicants must also fall within certain income and purchase price limits; however, as these limits vary by county, they should be verified by the consumer. However, because certain cities and counties receive federal funding, this program is not available in those areas.
The purchase property must be inspected for lead-based paint and pass the inspection in order to be eligible.
Other programs in Pennsylvania:
