Current down payment assistance guidelines, updated from one source.
The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Philadelphia, PA always shows the options in force.
Of the purchase price
Up to this share of the price can come from assistance: the largest option reaches closing costs as well as the down payment, while the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
This covers the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.
On the forgivable and repayable options
Most of the options carry no income limit, so a higher-earning household qualifies the same as anyone else; only the nothing-to-repay option looks at income, at 140% of the area median, or at a qualifying category.
Credit score to start
This is the lowest score that opens an option here — the nothing-to-repay option; the forgivable second liens start a little higher and the repayable options higher still, so a stronger score opens more choices.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Pennsylvania · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Program figures are refreshed from one guideline source and change when it changes. The nothing-to-repay option is not offered in every state; the forgivable and repayable options are second liens; no option combines with another assistance program; all are for owner-occupied primary residences. The rate in the calculator is an editable market benchmark, not a quote, and the payment shown is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is the broker, not the lender, and is not affiliated with FHA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
The first-time home buyer programs in Philadelphia, PA answer the most common reason a qualified buyer does not close — the cash to close — with assistance measured on the price and shaped to the buyer’s situation.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Pennsylvania.
Assistance covers the FHA down payment
Every purchase option for a Philadelphia buyer is sized on the price (or the lesser of price and value), not on a fixed sum: the smaller options cover the minimum investment, in whole or, on the lowest tier, in part, and the larger repayable option covers it and reaches closing costs and prepaid items too; the refinance option is sized on the balance.
Four shapes: grant, forgivable, repayable, refinance
The assistance comes as a grant where it is offered, as a forgivable second lien, or as a repayable second lien, with a refinance-cost version for an existing FHA loan; each pairs with the first lien differently, and the options table on this page shows what is offered in Pennsylvania.
Credit floors, mortgage programs, and unit counts
Two-borrower files can qualify on a blended score on the second-lien options when the higher earner has the higher score and an automated approval is in hand; every borrower still needs a score of their own, and the first lien and the unit count place the file as the options table shows.
Eligibility without a first-time-buyer rule
No option requires a first-time buyer. The nothing-to-repay option asks for one qualifying category — income at or below the area limit, a community-service occupation, a first purchase, or an underserved tract — and a homebuyer education course; the second-lien options ask for neither.
This is the whole test: the price sets the minimum investment, the option covers it, and the larger option leaves room for closing costs. The tool below applies it to your numbers and adds the FHA payment estimate.
Where Philadelphia’s first-time and moderate-income buyers shop — and how the assistance fits.
These Philadelphia, PA figures describe the market, not a borrower; the first lien’s approval and the option’s rules carry the file, and the numbers here only explain the neighborhood it sits in.
Citywide figures provide general market context, not an appraisal or an income calculation. Value and income rarely move at the same pace; the market figures below show what a Philadelphia home costs and how many households rent, and the calculator shows what that means for the minimum investment.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Philadelphia submarkets, distinct property rules.
Philadelphia’s entry-level stock is not one market. Each submarket below carries its own price points, its own property rules, and its own fit with the assistance options.
Older neighborhoods and renovation loans
In Philadelphia’s established neighborhoods, a buyer can use the program with a limited renovation loan or, on the nothing-to-repay option, a standard one, so the down payment help and the repair budget close together. The median owner-occupied home value in Philadelphia runs near $243,100 on the latest Census estimate.
Manufactured homes on owned land
Manufactured housing on owned land near Philadelphia is eligible, with the option decided by the home’s width: the nothing-to-repay option accepts single-width homes, while the second-lien options accept double-width only. Median gross rent in Philadelphia is about $1,397 a month — the payment many renters already carry.
New construction and infill
Infill and new-build homes in Philadelphia pair with the assistance as long as the property is the buyer’s primary residence and the first lien is a government program. On a home at Philadelphia’s median value, the FHA minimum investment comes to about $8,500 — the figure the assistance is built to cover.
Small multi-unit homes, owner-occupied
A buyer who lives in one unit of a Philadelphia duplex can use the program on the whole building; the nothing-to-repay option, which reaches four units, makes a house-hacking purchase reachable with the minimum investment covered. Median household income in Philadelphia sits near $61,953 on the latest Census estimate.
Townhomes and attached homes
Attached homes and townhomes in Philadelphia sit at price points where the minimum investment is smaller in dollars but no easier to save; the assistance closes that gap, and the association’s documents are reviewed with the file. Philadelphia itself counts a population near 1.58M.
Condominiums close to work
Condominiums are often the entry point in Philadelphia, and the assistance follows the first lien: the building needs FHA approval, or a single-unit approval, before the down payment help can attach to it. About 48% of Philadelphia’s households rent — roughly 327,523 renter households, the pool the program exists for.
These are patterns, not promises: each Philadelphia purchase is underwritten on its own appraisal, its own credit, and its own option.
Four ways Philadelphia buyers put down payment assistance to work.
Down payment assistance in Philadelphia, PA is used for more than a first purchase; these are the structures Philadelphia buyers ask about most.
Cover closing costs too on the larger option
A Philadelphia buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Cover the costs of an FHA refinance
Owners in Philadelphia with an FHA loan and little cash for a refinance use the refinance-cost option, subject to its own credit floor and the combined-leverage limit it carries.
Buy a small multi-unit home and live in one unit
House-hacking in Philadelphia, PA pairs with the program when the buyer occupies a unit; the unit count decides which option applies, and the first lien carries the building.
Buy a first home with the down payment covered
A Philadelphia buyer with the income for the payment but not the cash to close uses the assistance to cover the FHA minimum investment, a grant with nothing to repay, and keeps savings for the move.
Size the assistance on a Philadelphia price before requesting a quote.
Run a Philadelphia price through the options before you request a quote: the minimum investment, the assistance applied, what is left for closing costs, the mortgage insurance tier, and the estimated payment. Enter income to see the ratios a lender reads.
Philadelphia FHA payment with assistance
Illustrative Philadelphia inputs; the calculator recalculates on every change.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $245,000 price near Philadelphia’s median owner-occupied home value, the strongest assistance option offered in Pennsylvania applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Pennsylvania (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
A Philadelphia, PA buyer can reach the closing table several ways; the difference is where the minimum investment comes from and what it costs to carry afterward.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
Covers the FHA minimum investment as a percentage of the price in four shapes — the lightest a nothing-to-repay option released at closing, the largest a repayable second lien that reaches closing costs and prepaids — with credit floors in the low six hundreds and no first-time-buyer rule.
The buyer brings the minimum investment from savings, a retirement withdrawal, or seasoned funds; no second lien, no eligibility category, no homebuyer education requirement, and no assistance to carry. For the first lien itself, see Lendmire’s FHA loan program.
Where the property is USDA-eligible or the buyer qualifies for HUD-184, the forgivable options and the ten-year repayable option carry the Philadelphia file; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers — Lendmire places the Philadelphia, PA file where it reads best.
What to prepare for a Philadelphia scenario review.
What a down payment assistance review usually starts with.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
Beyond the credit tier and the first lien, a handful of details decide which option a Philadelphia buyer can use — or whether the assistance attaches at all.
Use these checks to keep the Philadelphia file clean and fundable.
A clean Philadelphia file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.
- Know the option: read the second lien as the loan it is.
- Confirm the category: settle which category applies before the application is signed.
- Consider a blended score: check whether the higher earner has the higher score.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Philadelphia, PA, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.
Blended scores for two-borrower files
On the second-lien options, two occupying borrowers can qualify on the average of their representative scores when the higher earner has the higher score; the loan must carry an automated approval, and every borrower still needs a score.
No stacking with other assistance
No option may be combined with another down payment assistance program in Philadelphia, PA, and the nothing-to-repay and forgivable options do not combine with a high-balance first lien; one assistance option, one first lien, one closing.
Escrow holdbacks for minor repairs
A Philadelphia home with a small repair list does not have to wait for the work before closing; the escrow holdback carries it, within the program’s cap and timeline, with an inspection when the work is done.
From a Philadelphia pre-approval to keys with the assistance in place.
The process for a Philadelphia, PA purchase with assistance is deliberate, because the details around the assistance are what stall closings.
Pick the option
The first step is the option: which ones the credit opens, which the first lien allows, and which costs the least to carry for a Philadelphia, PA buyer — settled before anything is ordered.
Get the mortgage approved
The first lien’s approval carries the file; the assistance is arranged alongside it, with the eligibility category and the education certificate in hand where they apply.
Clear the property
The property side of a Philadelphia, PA file is where the option can change: unit count, project approval, and the loan limit are confirmed before the closing is scheduled.
Close both loans together
Final underwriting reads the whole Philadelphia, PA file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.
A brokerage that pairs the assistance to the loan.
Down payment assistance is where a generalist stumbles: the options differ by first lien, by credit tier, by unit count, and by state, and the wholesale programs that carry them competently are a short list.
The option, matched to the buyer
Lendmire reads the options offered in Pennsylvania against a Philadelphia buyer’s credit, first lien, property, and category before anything is ordered, and names the fit by cost to carry.
The mortgage, matched to the property
A Philadelphia file is matched to the first-lien program that carries the property — FHA everywhere, USDA or HUD-184 where they fit — and the assistance option follows that choice.
The right wholesale program
Not every wholesale lender carries down payment assistance, and the ones that do differ on shape, floors, and states; Lendmire knows which is which.
Trusted by first-time buyers & families alike.
Philadelphia down payment assistance FAQs
Straight answers for Philadelphia buyers weighing down payment assistance; the mortgage approval and the option’s rules decide every actual figure.
Do I have to be a first-time homebuyer?
You do not. Every option is open to repeat buyers; the file is placed on the price, the credit score, the mortgage program, and the home — having owned before closes nothing, and a first purchase is only one of the categories that opens the nothing-to-repay option.
Is there an income limit?
Only on the nothing-to-repay option, and only when no other category applies: household income at or below the area-median-income ceiling in the snapshot, measured where the property sits. The forgivable and repayable second-lien options carry no income limit beyond the mortgage’s own rules.
What first-time home buyer programs are available in Philadelphia?
Think of it as one program with several ways to receive the help: forgiven at closing, forgiven after a run of on-time payments, or repaid over time. The options table on this page shows exactly which ones are offered in Pennsylvania and what each costs to carry.
Do I have to pay the assistance back?
For a Philadelphia buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
A Philadelphia buyer’s credit tier decides which options are open — the options table on this page shows the floor for every option offered in Pennsylvania.
How does a forgivable second lien work — the small second loan behind the mortgage?
It is recorded as a second lien with no interest and no monthly payment, and it is released after the on-time payment period on the first lien — three years on one option, five on the other — as long as there is no serious delinquency in that window and the home stays the primary residence.
What does Lendmire do on a Philadelphia first-time home buyer file?
Lendmire matches the option to the buyer and the first lien to the property, then runs both through approval and closing; it brokers the loan through its wholesale network and is never the lender.
What property types are eligible?
Most primary-residence property types, with the condominium’s approval, the manufactured home’s width and title, and the unit count deciding which option attaches.
Is there an option for refinancing?
For an existing FHA loan, yes — a repayable option sized on the balance, for a full refinance rather than a streamline.
Can I buy a duplex or a fourplex with assistance?
Yes, if you live in one of the units. The nothing-to-repay option reaches four units; the purchase second-lien options stop at two; the refinance-cost option reaches four with one unit owner-occupied.
From a pre-approval to keys — with the assistance in place.
No credit pull, no commitment: an initial review places your Philadelphia purchase on the right option and tells you what to gather.
This guide covers Philadelphia — for the statewide options, categories, and property rules, see Down Payment Assistance in Pennsylvania, part of Lendmire’s down payment assistance program.
Nearby markets in Pennsylvania: Allentown · Bethlehem · Reading · Lancaster · Jim Thorpe · Lebanon · Lake Harmony · Hershey
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans