Funding Insights

Philadelphia Home Buyer Grants for Your Dream Home 2024.

Discover the key in Philadelphia Home Buyer Grants with exclusive home buyer grants. Our comprehensive guide explores the benefits and application process for Philadelphia home buyer grants. Take the first step towards your dream home today.

Philadelphia offers various homebuyer assistance programs and grants to help residents achieve homeownership. Programs like the Philadelphia Housing Development Corporation (PHDC) offer down payment and closing cost assistance. Additionally, the Philly First Home Program provides grants of up to $10,000 for first-time homebuyers. It’s advisable to check with local agencies for the latest information and eligibility criteria.

Philadelphia Home Buyer Grants
Philadelphia Home Buyer Grants

Philadelphia Home Buyer Grants


The City of Philadelphia offers a homebuyer assistance grant, providing up to $10,000 (or 6% of the home’s purchase price, whichever is lower) to support first-time homebuyers in reducing the principal, covering down payment, and managing loan closing costs. As a grant, the program closes once all funds are utilized, requiring a wait until the next year for refinancing.

Program Requirements and Features

Complete a free city-funded homeownership counseling program before signing an agreement of sale.

Property eligibility: Single-family homes or duplexes in Philadelphia (no condos).

Qualification: First-time homebuyer or not owning a home in the past three years.

Income limit: For a one-person household, the annual income must not exceed $73,800. This limit increases by $10,500 for each additional person, up to a maximum of four. Beyond a family of four, the maximum annual household income increases by increments of $8,450. For example, the maximum annual household income of a family of seven is $130,700.

To apply for Philly First Home, contact a city funded housing counseling agency. Your lender can help point you in the right direction as well.


Our brokerage provides an exclusive incentive: when you choose an EWR agent for your home purchase under $200k, you’ll receive a commission rebate at closing, and we’ll waive the typical broker fees. This program, valued at up to $1,595, aims to ease your closing costs and return some upfront expenses to you.

Program requirements and features

  • Exclusive offer for FHA or other low down payment buyers
  • Representation by an Elfant Wissahickon Realtor is a requirement
  • The home purchase price must be under $200k
  • Applicable only for buyers intending to occupy the home, not investors


  • $500 rebate from Elfant Wissahickon Realtors at closing, combinable with other approved credits, grants, and gifts
  • Waiver of the $495 settlement services fee
  • Select lenders matching the EWR $500 rebate
  • Affiliated title companies (Northwest Abstract and Class Abstract) waiving notary and administrative fees (typically $150$200)


A forgivable grant offering up to $7,500, applicable for closing costs and down payment assistance, with an extension of up to $10,000 for essential workers.

Program Requirements and Features

Eligibility criteria:

– First-time home buyer: Haven’t owned a home in the past three years or only owned while married, not as a single person within the last three years.

– This includes married couples if either hasn’t owned a home in the past three years.

Forgiveness terms:

– Funds are entirely forgiven after five years.

– If the home is sold before five years, a portion of the grant subsidies may need to be repaid.

Mortgage details:

– Grant has no impact on the 1st mortgage rate, which is based on market rates.

– Can be combined with an FHA or Conventional loan.

Loan requirements:

Minimum Credit Score: 640

Termite Inspection is required.

No maximum DebttoIncome (DTI) as long as the loan is approvable through automated underwriting.

Education requirement:

Must attend an Online Homebuyer Education course.

Income Limits:

Single person: $52,550

Two people: $60,500

Three people: $68,500

Four people: $75,600

Note: Based on total household income, even if not all parties are on the loan.

Philadelphia Home Buyer Grants
Philadelphia Home Buyer Grants

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First Front Door

Annual funding availability:

– It opens once a year, and once it’s depleted, it’s no longer available.

– The 2024 funding opens on April 16th.

Grant details:

– Grant subsidy now provides a maximum of $15,000 (increased from $5,000).

– Intended for closing costs and down payment assistance.

The buyer’s contribution must be $1,500 to secure the full $15,000 assistance.

Program Requirements and Features

Eligibility criteria:

  • First-time home buyer: Haven’t owned a home in the past three years or only owned while married, not as a single person within the last three years.
  • It applies to married couples if either hasn’t owned a home in the past three years.

Mortgage process:

Secure a first mortgage through a participating lender, with PHG-recommended lenders available.


Once approved, the buyer has six months to purchase and close a home.

Income limits:

Single income limit: $62,500

Two people: $71,400

Three people: $80,350

Four people: $89,250

Note: 2024 limits not yet published.

Employment and education requirements:

– Not be a student working less than 30 hours per week.

– Complete at least four hours of homeownership counseling before purchasing the home.

Financial considerations:

– Not receive cash back at settlement for any reason.

– Ensure the lender provides no more than $250 cash back at loan closing.

Grant terms:

  • Agree to maintain the home for five years to retain the full grant amount.
  • If the home is sold before five years, some grant subsidies may need to be repaid.


  1. No requirement to be a first-time home buyer to access this loan’s benefits.
  2. Enjoy monthly mortgage payments without Private Mortgage Insurance (PMI).
  3. And Benefit from as little as 3% down, optimizing your monthly expenses.
  4. Based on your income, explore homes in all Philadelphia neighborhoods or focus on low to moderate zones like East Kensington and various parts of South Philly.

Program Requirements and Features

  • Benefit from a low 3% down payment without the need for Private Mortgage Insurance (PMI).
  • Combine with approved grants for additional assistance.
  • Sellers can provide assistance up to 9% (depending on the loan to value), with a maximum of 3% at maximum lending.
  • Enjoy competitive mortgage rates.
  • Suitable for multiunit properties; a 10% down payment is required for owneroccupied 24 unit properties.
  • Ownership of additional properties is not permitted.
  • No income restrictions for borrowers in low to moderate-income census tracts, including areas like Point Breeze, Kensington, Port Richmond, and Brewerytown.
  • Outside low to moderate-income tracts, income restrictions are $53,990/yr for 14-person households.
  • A minimum credit score of 620 is required.
  • Borrowers need to contribute $500 of their own funds.
  • It must be your primary home, but first-time homebuyer status is not required.


Offers 100% financing without the need for Private Mortgage Insurance (PMI).

Notably, it can be seamlessly combined with various other grants, gifts, and community second mortgages, including First Front Door, Philly First Home, and County Grants.

Program Requirements and Features

-Minimum borrower contribution of $1,000 required.

– A credit score of 680 or above is necessary.

Income must meet the 80% median income limit.

– Can be combined with other approved grants and gifts.

-Sellers can provide a maximum of 4% assistance.

– Property must be situated in a low to moderate-income tract.

– First-time home buyer status is required, or not having owned a home in the past three years.

Completion of an online homeownership education course is mandatory.


Crafted to aid individuals and families with restricted income or those acquiring homes in low and moderate-income areas, enabling them to achieve homeownership dreams. Secure your home with a minimal 3% down payment and eliminate the need for monthly private mortgage insurance!

Program Features

  1. Low down payment options offering up to 97% financing.
  2. No requirement for Private Mortgage Insurance (PMI).
  3. Benefit from a discount on closing costs with reduced fees.
  4. Minimal reserves are required, featuring flexible guidelines.
  5. Sellers can provide assistance up to 6%, depending on the loan value.
  6. Enjoy competitive mortgage rates.

Program requirements

Income details:

– No income restrictions for borrowers if the property is in a low to moderate-income census tract.

– Outside low to moderate-income tracts, income restrictions apply $75,600/yr for 14-person households.

Credit score requirements:

– Minimum credit score of 620.

– For credit scores between 620 and 680, a 5% down payment is required.

– Borrowers with a credit score above 680 can put down just 3%.


The HomeReady mortgage stands as a leading affordable lending solution tailored for creditworthy low-income borrowers. This loan enables a minimal 3% down payment without geographic restrictions and offers a lower interest rate.

Program Requirements

Home Ready income details:

– Limits set at 80% of the area median income, which is $91,520 in much of Philly.

The income limit is based on the borrower’s income, not household income, in contrast to NOP, which uses household income for qualification.

Income flexibility:

Borrowers making $120K as a couple won’t qualify together, but HomeReady allows qualification based on a single income if desired.

Co-Borrower option:

HomeReady permits a nonoccupant co-borrower, enabling parents to assist the primary borrower in qualifying.

First-time buyer status is not required.

Funding flexibility:

Gifts, grants, and cash on hand are accepted as sources of funds for the down payment and closing costs.

Education requirement:

If all occupying borrowers are first-time homebuyers, at least one must complete the Framework online education course, regardless of LoantoValue (LTV).

Credit score criteria:

Borrowers can qualify with credit scores as low as 620, with final loan approval relying on Fannie Mae’s Desktop Underwriter and considering all risk factors.

Philadelphia Home Buyer Grants
Philadelphia Home Buyer Grants


HomePossible shares similarities with the HomeReady Program guidelines.

Notable difference:

Student loan calculations vary; HomePossible qualified lenders use 0.05% of the balance, unlike HomeReady, which uses 1% for student loans showing a $0 payment and not on an income-based repayment plan.

Additional benefit:

HomePossible accepts HomeView counseling, a free alternative, in contrast to HomeReady, which requires Framework qualification and costs $75.


The “P” in a PHFA loan signifies the Pennsylvania Housing Financing Agency. This government loan allows a down payment as low as 3%3.5%, depending on your credit score. It comes with various benefits and requirements, making a discussion with a loan officer advisable. Combining it with the KFIT loan is an excellent choice.

The KFIT loan offers 5% of the lesser of the purchase price or appraised value, with no maximum amount. For example, if a home is priced at $215,000, the buyer may receive $10,750 in KFIT loan assistance, applicable towards the transaction.

Program Requirements

KFIT details:

A forgivable second loan, with 10% forgiven annually over ten years, eliminating the need for monthly payments.

Eligible loan pairing:

– KFIT purchase assistance loan exclusively pairs with PHFA’s Keystone Home Loan (KHL) program.

– Financing options include Conventional, FHA, RD, and VA (for RD and VA, KFIT covers closing costs only).

– Completion of housing counseling at a DHCD-funded housing counseling agency is mandatory.

Income and Purchase Limits:

– Household income limits: $137,200 for 12 persons, $160,100 for three or more members.

– Maximum purchase price allowed is up to $659,000.

Credit and Financial Requirements:

– All borrowers seeking KFIT funds must have a minimum FICO score of 660.

– Completion of homebuyer education counseling is required for borrowers obtaining KFIT funds, irrespective of their credit score.

– Borrowers applying for a KFIT loan shouldn’t possess liquid assets exceeding $50,000 after deducting funds for closing.


Must not have owned a home in the past three years.


The closing process may be slower due to the loan’s popularity.

Frequently Asked Questions

What are Philadelphia Home Buyer Grants?

Philadelphia Home Buyer Grants are financial assistance programs designed to support individuals and families in purchasing homes within the city. These grants often cover down payments, closing costs, and other associated expenses.

How do I find out about available grants?

Check with local agencies and organizations such as the Philadelphia Housing Development Corporation (PHDC) to get information about the latest available grants. Additionally, consult with real estate professionals who may have insights into current opportunities.

Can I combine multiple grants for a home purchase?

In some cases, yes. Certain programs, like Philly First Home, allow combination with other approved grants and incentives to maximize financial assistance for homebuyers.

Do these grants have income restrictions?

Yes, many Philadelphia Home Buyer Grants have income limits to ensure assistance reaches those with limited financial means. Income eligibility criteria can vary, so it’s essential to review each program’s specific requirements.

Are there grants specifically for first-time homebuyers?

Yes, programs like Philly First Home often target first-time homebuyers, providing them with unique benefits and financial support. However, eligibility criteria may vary among different grants.

Can I use these grants for any type of property?

Grant usage may be property-specific. Some grants may apply to various property types, while others may have restrictions. Always check the guidelines of each grant to understand its applicability.

Are there educational requirements for grant recipients?

Yes, some programs, such as Philly First Home, may require completion of a homebuyer education course. This ensures buyers are well informed about the home buying process and responsibilities.

What steps should I take to apply for these grants?

Start by researching available grants, understanding their eligibility criteria, and gathering necessary documentation. Consult with a local real estate professional or housing agency for guidance on the application process.

Can these grants be used in combination with mortgage loans?

Yes, many Philadelphia Home Buyer Grants can be combined with mortgage loans to provide additional financial support for the purchase of a home. Check the specific terms and conditions of each grant to understand compatibility with other financing options.

Is there a deadline for applying for these grants?

Grant availability may be limited, and some programs may have specific application periods. Stay updated with local housing agencies and grant providers to ensure the timely submission of your application.

Conclusion on Philadelphia Home Buyer Grants.

Philadelphia Home Buyer Grants offer valuable opportunities for individuals and families to achieve their dream of homeownership. These grants, designed to alleviate financial barriers, provide assistance with down payments, closing costs, and other expenses. It’s crucial to stay informed about available programs, income restrictions, and educational requirements. Consulting with local housing agencies and real estate professionals can guide you through the application process. Remember that combining grants with mortgage loans is often an option, and staying updated on deadlines is essential. By taking advantage of these grants, aspiring homeowners can navigate the path to homeownership with greater financial ease and support.


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