Purchase
First-time buyer loans
The assistance money exists. Most buyers never find out they qualified.
What a First-time buyer loan actually is
A first-time buyer under agency rules is anyone with no ownership interest in a principal residence during the previous three years. That definition surprises people: a divorce, a decade renting after selling, or having only ever owned an investment property can all put you back in the category.
Philadelphia is unusually rich in assistance. The Pennsylvania Housing Finance Agency offers Keystone Advantage second liens, the Keystone Home Loan program with below-market pricing, and the K-FIT forgivable grant. The city's own programs layer on top. Most of it is income and purchase-price capped, none of it is automatic, and the applications must be structured before the file goes to underwriting rather than after.
Best suited to
- Buyers who have never owned, or have not owned in three or more years
- Households under the PHFA county income caps
- Anyone who has been told they need 20% down and believed it
- Buyers in Philadelphia, Delaware and Montgomery counties where assistance funding is active
What comes with the loan
- An assistance eligibility screen against income and purchase price caps in your county
- PHFA Keystone Advantage second lien application prepared alongside the first mortgage
- K-FIT forgivable grant structuring where the program is open and funded
- Referral to an approved homebuyer education provider, with the certificate tracked to closing
- A written comparison of conventional 3% down against FHA at your exact credit score
- Budget worksheet showing the true monthly cost including taxes, insurance and any association dues
How a file moves
- 01
Assistance screen
Before anything else we check income and price caps for your county and tell you which programs are realistically open.
- 02
Education certificate
Most assistance requires six to eight hours of homebuyer education. Start it in week one; it is the single most common cause of a delayed closing.
- 03
Dual application
The first mortgage and the assistance second are prepared together. Submitting the second after underwriting has started restarts the file.
- 04
Offer and appraisal
Assistance programs cap purchase price, so we confirm the contract price stays inside the cap before the appraisal is ordered.
- 05
Closing
You will sign two notes and see the assistance funds appear as a credit on the settlement statement. We walk through both documents in advance.
Why borrowers choose it
Assistance you can stack
A PHFA second and a forgivable grant can often run together, covering most or all of the cash to close.
3% down conventional
With cancellable PMI, which usually beats FHA once your score passes 680.
Gift funds fully allowed
The entire down payment may be gifted on a one-unit primary residence, with a simple documented trail.
Honest program comparison
We show conventional, FHA and any assistance route side by side, with the monthly and the five-year cost of each.
What to watch out for
- Assistance funding runs out mid-year and reopens. Timing matters more than most buyers expect.
- Homebuyer education certificates expire. Do not complete the course a year before you buy.
- A second lien complicates a future refinance; it must be paid or resubordinated.
First-time buyer questions we get asked
Still unclear? Call (215) 555-0145 and ask for the originator covering your county.
All questionsUnder agency rules, yes, provided you have had no ownership interest in a principal residence in the previous three years. Owning a rental property in that window does not necessarily disqualify you for agency purposes, though specific assistance programs apply their own tests.
It depends on the program, county, your income and the purchase price. PHFA's Keystone Advantage second is capped at a percentage of the purchase price with a dollar ceiling, and K-FIT is a forgivable percentage. We run the exact numbers for your file rather than quoting a maximum you may not reach.
Sometimes. PHFA's below-market first mortgage products can price under the conventional market, while some grant products carry a modest rate adjustment. We show you the total five-year cost of each route, not just the rate.
For most assistance programs, yes, and for some first mortgage products too. It is six to eight hours, widely available online, and the certificate is a closing condition. Start it in your first week.
Programs worth comparing
Conventional
Conforming loans to $832,750 with cancellable PMI
FHA
3.5% down from a 580 score, 10% down from 500
USDA guaranteed
Zero down in eligible outer-county tracts, income capped
Find out if First-time buyer fits
Fifteen minutes, a soft credit pull, and a straight answer about which program actually suits your file.
No application fee. Soft credit pull at pre-qualification. Flat $1,095 origination at closing.