Pennsylvania Mortgage Loans - PHFA Programs & Tax Savings
Pennsylvania offers homebuyers a standout advantage: you can stack PHFA's 5% forgivable K-FIT down payment assistance with the Homestead Exemption and local grants for $24,000+ in combined benefit. As a broker licensed in Pennsylvania with 240+ wholesale lenders, I help buyers across Philadelphia, Pittsburgh, and the Keystone State maximize these programs.
Financing Dreams Across the Keystone State
From Philadelphia's Liberty Bell to Pittsburgh's iconic bridges, Pennsylvania's historic landmarks represent the opportunity we help buyers achieve. Explore mortgage solutions tailored to your region.
Liberty Bell
The Liberty Bell, housed at Independence National Historical Park, symbolizes American freedom and Philadelphia's pivotal role in the nation's founding. This iconic cracked bell represents Pennsylvania's status as the birthplace of American democracy.
Market Focus
Philadelphia Metro Housing Market
Median Home Price: $275,000
Popular Loans: FHA, Conventional, Philly First Home
Market Growth: +4.8% YoY appreciation
Market Advantage: Philadelphia's $100K homestead exemption saves homeowners $1,399/year in property taxes
Regional Insight
Greater Philadelphia spans 5 counties with diverse price points from $200K rowhomes in Kensington to $800K+ single-families in Main Line suburbs. Philly First Home grants provide up to $10K (6% of purchase price) for first-time buyers. PHFA K-FIT offers 5% forgivable assistance statewide. FHA 3.5% down loans popular for urban buyers.
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"I was renting in Manayunk and thought I'd never save $20,000 for a down payment. Emmett showed me how PHFA K-FIT gave me 5% toward my purchase, $13,500 that's forgiven over 10 years, plus the Philly First Home grant. I bought a $270K rowhouse with less than $5,000 out of pocket, and my mortgage is $300 less than my old rent. The homestead exemption saves me another $117/month on property taxes. This changed my life."
David S.
Philadelphia - PHFA K-FIT + Philly First Home
How can Pennsylvania buyers stack assistance programs to save the most?
Pennsylvania is one of the few states where you can stack state down payment assistance with local property tax relief. Here's how savvy PA buyers are doing it.
Get 5% Down with PHFA K-FIT
PHFA's Keystone Forgivable in Ten Years program gives you 5% of your purchase price (no cap!) toward down payment and closing costs. The loan is forgiven at 10% per year, meaning if you stay 10 years, you owe $0.
Lock in Homestead Tax Savings
Apply for the PA Homestead Exemption by March 1st to reduce your property's assessed value. In Philadelphia, that's a $100,000 reduction, saving you ~$1,399 per year in property taxes (that's $117/month!).
Combined First-Year Impact
On a $300K home in Philadelphia with low-down-payment conventional financing in Pennsylvania:
K-FIT Assistance
$15,000
5% down payment covered
Property Tax Savings (Year 1)
$1,399
From homestead exemption
Total First-Year Benefit
$16,399
Plus ongoing tax savings
What PHFA down payment assistance programs are available?
PHFA offers the strongest state-level down payment assistance in the Mid-Atlantic. These programs pair well with an FHA loan for Pennsylvania first-time buyers or your PHFA first mortgage.
K-FIT (Keystone Forgivable in Ten)
Get 5% toward down payment & closing costs, with no dollar limit. Forgiven 10%/year over 10 years if you stay in the home.
Keystone Advantage
Up to 4% of purchase price or $6,000 for down payment & closing costs. Monthly repayment over 10 years at 0% interest.
HOMEstead Program
Federal HOME-funded assistance for eligible counties. 20% forgiven per year over 5 years.
Typical PHFA Requirements
- Minimum 660 credit score (some programs 620)
- First-time homebuyer or haven't owned in 3 years
- Liquid assets under $50,000 after closing
- Income limits vary by county (most PA families qualify)
- Primary residence only (no investment properties)
- Complete homebuyer education course (free!)
How do I stack PHFA with Philadelphia or Pittsburgh programs?
Philadelphia, Pittsburgh, and Montgomery County offer additional grants and loans that can be combined with PHFA programs. Some buyers get $25K+ in total assistance. Start by getting pre-approved for your Pennsylvania mortgage so you know which programs you qualify for.
Philly First Home
Philadelphia
Grant repayable only if you move/refi within 15 years. Combines with PHFA!
Income ≤ 120% AMI
Assistance Amount
Up to $10K or 6%
Pittsburgh URA
Pittsburgh
CDBG-funded deferred loan for first-time buyers. Huge potential assistance!
Income ≤ 80% AMI
Assistance Amount
Up to $90,000
Montgomery County
Montgomery County
$10K base + $30K ARPA funds for households below 80% AMI. Zero-interest loan.
Work/reside in MontCo
Assistance Amount
Up to $40,000
Pro Tip: Stack for Maximum Impact
Philadelphia Example: Combine PHFA K-FIT (5% of purchase) + Philly First Home (up to $10K) + Homestead Exemption ($1,399/year savings). On a $280K home, that's $14,000 in K-FIT + $10,000 grant + ongoing tax savings = $24,000+ total benefit plus $117/month lower property taxes forever!
🧮 Pennsylvania Mortgage Calculators
See how PHFA assistance and homestead savings affect your budget, or calculate refinance savings with rates well below the ~8% peak of 2023.
Home Affordability
Factor in homestead tax savings
Home Affordability Calculator
Discover how much house you can afford based on your income and debts
Car loans, credit cards, student loans, etc.
Lenders typically prefer ratios below 45%/45%
Refinance Calculator
Drop from the ~8% 2023 peak
Refinance Calculator
Compare your current mortgage with refinance options to see potential savings
Current Loan
New Loan
You'll recover your closing costs in 11 months (1 year)
What are today's mortgage rates in Pennsylvania?
We publish Pennsylvania mortgage rates daily. Here is today's conventional rate, updated automatically so you always see current pricing.
Today’s 30-Year Fixed (Conventional) Rate
Conventional – Primary Residence
Rate Assumptions
30 year fixed, $300k loan amount, $400k value, purchase, FICO Credit Score 759, Zipcode 92867
APR & Disclosures
The Annual Percentage Rate (APR) shown reflects the cost of credit over the loan term, including applicable fees, and is based on the assumptions above. Your actual rate and APR depend on your credit profile, loan amount, property, occupancy, and other factors. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.
Should I buy in Philadelphia or Pittsburgh?
Pennsylvania's two major markets offer different opportunities, and a Pennsylvania mortgage broker who shops 240+ wholesale lenders can match you to the right program in either city. Here's what you need to know.
Philadelphia
Hot Neighborhoods:
- • West Philly: Revitalization near Penn & Drexel
- • Port Richmond: Emerging waterfront community
- • South Kensington: Young professionals moving in
- • Manayunk: Charming Main Street, close to city
Pittsburgh
Hot Neighborhoods:
- • Lawrenceville: Trendy bars, restaurants, and art scene
- • Bloomfield: "Little Italy" with affordable homes
- • Highland Park: Zoo, reservoir, family-friendly
- • Squirrel Hill: Strong schools, walkable streets
Pennsylvania Refinance Opportunity: Drop from the 2023 Peak
If you bought or refinanced when rates peaked around 8% in late 2023, today's lower rates could save you hundreds per month. Here's what PA homeowners are seeing.
Real PA Refinance Example
Monthly Savings
$313
$3,756 saved annually • $112,680 over 30 years
Why Pennsylvania Homeowners Are Refinancing
Lower Your Rate
Drop from the 7-8% peak of 2023 and slash your payment
Cash-Out Equity
PA home values up, tap $213K average tappable equity for renovations or debt payoff
Drop PMI
If your home appreciated, you may now have 20% equity and can eliminate PMI
Consolidate Debt
Roll high-interest credit cards into your low mortgage rate
Note: If you locked in a sub-5% rate during the pandemic, refinancing likely doesn't make sense unless you need cash-out.
Serving Homebuyers Across Pennsylvania
From Philadelphia to Pittsburgh and everywhere in between, I help Pennsylvania families navigate PHFA programs and local assistance.
Philadelphia County
Philly First Home grants up to $10K + $100K homestead exemption saves $1,399/year
Allegheny County
URA offers up to $90K assistance + revitalized neighborhoods in Lawrenceville & Bloomfield
Allentown
Lehigh County
Growing Lehigh Valley market with strong job growth and affordable entry points
Harrisburg
Dauphin County
State capital with stable government employment and accessible home prices
Lancaster
Lancaster County
Booming market attracting remote workers seeking affordability and charm
Reading
Berks County
Affordable alternative to Philadelphia with improving downtown and suburbs
Pennsylvania Mortgage FAQs
Can I combine PHFA K-FIT with local down payment programs in Pennsylvania?
Yes. PHFA's K-FIT gives you 5% of the purchase price toward down payment and closing costs, forgiven over 10 years, and it can be layered with local programs like Philly First Home (up to $10,000) or the Pittsburgh URA loan. Many buyers combine state and local assistance for $24,000 or more in total benefit on a single purchase.
How much does the Pennsylvania Homestead Exemption save on property taxes?
It depends on your county's assessed value reduction. In Philadelphia, the homestead exemption lowers your assessed value by $100,000, which saves roughly $1,399 per year, or about $117 per month on escrow. You must apply by March 1st to claim it for the year.
Should I buy in Philadelphia or Pittsburgh?
Both markets offer strong value. Philadelphia has a median price near $275,000 with the $1,399 homestead savings and Philly First Home grants, while Pittsburgh is more affordable at roughly $210,000 with URA assistance up to $90,000 for qualified buyers. The right choice depends on your budget, job location, and which assistance programs you qualify for.
Who qualifies for PHFA down payment assistance in Pennsylvania?
Most programs require a minimum 660 credit score (some allow 620), first-time buyer status or no ownership in the past three years, liquid assets under $50,000 after closing, and completion of a free homebuyer education course. Income limits vary by county, and most Pennsylvania families qualify.
Explore Every Pennsylvania Loan Program
Ready to Buy or Refinance in Pennsylvania?
Whether you're a first-time buyer in Philadelphia eyeing PHFA K-FIT, a Pittsburgh homeowner looking to refinance, or anywhere in the Keystone State, I'll help you maximize your benefits.
From the blog & learning center
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