Last updated: April 2026 · Program availability changes frequently
Down Payment Assistance in Philadelphia: Overview
Philadelphia is the most affordable major city on the East Coast. The median sale price sits around $270,000. New York City is over $1.2 million. Washington DC is above $620,000. Boston is pushing $700,000. Buyers priced out of those cities have been arriving in Philadelphia for years, which is reshaping the market from the ground up.
That context matters for DPA because lower prices mean the same assistance dollar goes further. A 3.5% FHA down payment on a $270,000 Philadelphia home is $9,450. PHFA's K-FIT program provides 5% of the purchase price as a forgivable loan. On that same $270,000 home, K-FIT is $13,500. That exceeds the entire minimum down payment with money remaining for closing costs. The math is favorable here in a way it is not in higher-priced markets.
Philly's neighborhoods tell a divided story. Fishtown, Point Breeze, Brewerytown, and Graduate Hospital have appreciated sharply over the past decade. Other neighborhoods remain deeply affordable. The city's DPA programs are designed to help buyers get in before appreciation prices them out entirely. Philly First Home, the city's program, provides up to $10,000 as a forgivable loan with a 15-year term. Pair it with PHFA's Keystone Advantage ($6,000 at 0% interest), and a first-time buyer has $16,000 in confirmed combined assistance at the closing table.
One program note that trips up buyers: PHFA HOMEstead, which provides up to $10,000 forgivable over 5 years, is not available in Philadelphia. The program excludes jurisdictions with their own federal HOME allocation, and Philadelphia qualifies. Buyers researching PHFA programs online sometimes plan around HOMEstead before learning it does not apply here. This guide focuses on what actually works in the city.
Quick Answer
Yes. Philadelphia has a city program (Philly First Home) and two state programs through PHFA (K-FIT and Keystone Advantage) that can be layered for up to $16,000 in confirmed combined assistance.
Philly First Home provides up to $10,000 as an interest-free loan, forgiven after 15 years of owner occupancy. K-FIT provides 5% of the purchase price (about $13,500 on a $270K home) forgiven over 10 years. These two programs may be stackable, but confirm with your lender. The confirmed stack is Philly First Home plus Keystone Advantage ($6,000 at 0%), totaling $16,000.
All programs require a 660 credit score for the PHFA side. Philly First Home has no program-set minimum but lender standards apply. The city's income limit for Philly First Home is 120% AMI, which accommodates most first-time buyers in Philadelphia.
Philadelphia City and State Programs
Philly First Home
Condominiums are not eligible. Requires completion of city-funded one-on-one homeownership counseling before signing the agreement of sale. If you sell or refinance before 15 years, the loan must be repaid. Administered by the Division of Housing and Community Development (DHCD).
PHFA K-FIT (Keystone Forgivable In Ten Years)
Must be paired with a PHFA Keystone Home Loan first mortgage. Cannot be combined with other PHFA assistance programs. On a $270,000 purchase: 5% = $13,500, forgiven at $1,350 per year. Fully gone after 10 years if you remain in the home.
PHFA Keystone Advantage Assistance Loan
Repaid in monthly installments over 10 years at 0% interest. This is not forgiven. Cannot be combined with K-FIT. Can be combined with the PHFA $500 Grant when using an HFA Preferred (Lo MI) loan. Works with conventional, FHA, VA, and rural development loans.
PHFA $500 Grant
Small but a true grant. Stacks cleanly on top of Keystone Advantage when using the HFA Preferred loan product. Combined: $6,000 + $500 = $6,500 in state assistance without the forgivable structure of K-FIT.
HOMEstead is not available in Philadelphia. PHFA HOMEstead ($10,000 forgivable over 5 years) excludes jurisdictions with their own federal HOME allocation. Philadelphia has one. Buyers who research PHFA programs statewide sometimes plan around HOMEstead before learning it does not apply. Skip it. Focus on Philly First Home, K-FIT, and Keystone Advantage.
How DPA Programs Work in Philadelphia
Forgivable Loans
Forgiven over time if you stay in the home. Philly First Home forgives after 15 years of occupancy without refinancing. K-FIT forgives 10% per year over 10 years. The practical effect: stay put and the balance disappears. Sell or refinance early and you repay the remaining balance. These are not grants but behave like grants for buyers who hold long term.
Amortizing Seconds
Keystone Advantage is a 0% second mortgage repaid monthly over 10 years. On $6,000 that is $50 per month. You never owe more than you borrowed, and there is no interest, but there is a monthly payment. This is different from a deferred loan (no payment until sale) and different from a forgivable loan (balance disappears over time). Know which type you are getting.
True Grants
The PHFA $500 Grant is the only true grant in the Philadelphia landscape. No repayment, no lien, no conditions beyond using the HFA Preferred loan. It is small, but it is money that never comes back. Pair it with Keystone Advantage for $6,500 total in state assistance with no forgiveness clock to track.
Program Stacking
Philly First Home (city) and PHFA programs (state) operate independently and can layer. The confirmed stack: Philly First Home ($10,000) plus Keystone Advantage ($6,000) equals $16,000 total. K-FIT and Keystone Advantage cannot stack with each other. Verify all stacking with your lender before making assumptions about combined amounts.
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This guide is for informational purposes only and is not a commitment to lend. Program availability, terms, and eligibility requirements change frequently. All program details should be verified directly with the administering agency or an approved lender before making financial decisions. DownPaymentScout is an independent resource and is not affiliated with any government agency or lending institution. Information is believed accurate as of the date shown but is not guaranteed. Last updated April 2026. Program availability changes frequently.