Down Payment Assistance Programs for First Time Home Buyers in Allegheny County, Pennsylvania
If you live in Pennsylvania and are interested in buying a home in Allegheny County – there may be down payment assistance programs available to you. Saving enough money for a down payment is one of the single biggest obstacles to homeownership – but it is entirely possible that down payment assistance is available to you and you aren’t even aware of it.
What is Down Payment Assistance?
It is any kind of program that is designed to help people get into a home. That may be a very broad definition, but down payment assistance programs are not always programs that hand out free money by giving you cash in a suitcase – they can take many different forms. Some examples of the different types of down payment assistance programs that may be available include: Grants, Silent Seconds, Delayed Repayment Loans, Interest Free Loans, and Lender Specific Programs. Since there are so many different types of programs that may be available – it is advised that you find the right loan officer who is knowledgeable in programs in your area.
Down Payment Assistance Programs in Allegheny County, Pennsylvania
- Pennsylvania Housing Finance Agency – Keystone Advantage Assistance Loan Program: The Keystone Advantage Assistance Loan Program provides a second mortgage loan to help with the costs associated with the purchase of a home. Qualified borrowers can receive up to four percent (4%) of the purchase price or market value or $6,000 (whichever is less) in downpayment and closing cost assistance to be repaid monthly. The assistance loan will be amortized over a ten year term at zero percent (0%) interest. For more information, click here.
- Pennsylvania Housing Finance Agency – HOMEstead Down Payment and Closing Cost Assistance Loan: The program that is best for you will depend on your specific circumstances, such as your credit history and amount of cash savings, as well as your individual preferences. A PHFA approved homebuyer education provider or participating lender can help you decide. Homebuyers eligible for the HOMEstead program may qualify for up to $10,000 in downpayment and closing cost assistance in the form of a no-interest, second mortgage loan. HOMEstead funds are forgiven at 20 percent per year over five years for all loans closed on or after January 1, 2007. The minimum loan amount is $1,000. The first mortgage is provided by PHFA at the same rate as the Keystone Home Loan program. For more information, click here.
- Pennsylvania Housing Finance Agency – Employer Assisted Housing Initiative: The Pennsylvania Housing Finance Agency is pleased to offer an Employer Assisted Housing (EAH) Initiative to help address the issues regarding the lack of affordable housing for low- to moderate-income workers. Throughout the country and certainly throughout Pennsylvania, homeownership is beyond the reach of core community employees, medical personnel, school employees, police and fire personnel, county workers, laborers, service industry staff, etc. To learn more, click here.
Mortgage Programs Available in Allegheny County, Pennsylvania
- Pennsylvania Housing Finance Agency – Keystone Government Loan Program: he Keystone Government Loan Program (K-Gov) provides first mortgage financing on loans insured by the Federal Housing Administration (FHA) or guaranteed by Rural Development (RD) or the Department of Veterans’ Affairs (VA). Loans are underwritten using the guidelines of the respective federal agency providing the insurance/guaranty. PHFA does not impose any additional guidelines except as noted below. For more information, click here.
- Pennsylvania Housing Finance Agency – Keystone Home Loan Program: The program that is best for you will depend on your specific circumstances, such as your credit history and amount of cash savings, as well as your individual preferences. A PHFA approved homebuyer education provider or participating lender can help you decide. Start living your dream today; find out if you’re eligible for a low-rate, 30-year fixed PHFA home loan. For more information, click here.
- Pennsylvania Housing Finance Agency – Mortgage Credit Certificate Program: A PHFA Mortgage Credit Certificate (MCC) allows homebuyers to claim a tax credit for 50 percent (50%) of the mortgage interest paid per year, capped at $2,000 annually. It is a dollar-for-dollar reduction against your federal tax liability. The MCC is available to qualified homebuyers in conjunction with the following PHFA first mortgage home purchase loan programs: HFA Preferred™(Lo MI), HFA Preferred Risk Sharing™(No MI), or
Additional Home Buying Resources
HUD offers some resources to those people who are interested in learning more about the process of buying a home, and the information on HUD’s website is free. Just a few of the services that HUD offers information about include: housing counseling agencies, predatory lending, education, assistance programs, HUD homes for sale, homeownership vouchers, home repairs, avoiding foreclosure, making your home more energy efficient, and more.
Other Relevant Allegheny County Sites
- Pennsylvania Association of Realtors
- Allegheny County Schools
- Allegheny County Sheriffs
- HUD Homeownership Assistance for Pennsylvania