Skip to main content

PHFA Institutes $500 Homebuyer Purchase Assistance Grant

Mar 16, 2021
PHFA Logo
Director of Events

The Pennsylvania Housing Finance Agency created a $500 grant that can be applied to a homebuyers' down payment and closing costs when purchasing a home. The grant is available for loans locked on or after March 15.

"This is our second announcement in March about a new purchase assistance program we've created to help homebuyers," said PHFA executive director and CEO Robin Wiessmann. "Down payment and closing costs are the biggest hurdle many homebuyers face when they purchase a home, and this $500 grant program will help address that challenge."

Earlier this month, the PHFA launched a home purchase assistance loan that is forgivable in 10 years.

PHFA home loans and purchase assistance programs are made available through a network of approved lenders located statewide, according to a press release. These lenders work with homebuyers to find a PHFA loan program that best suits their needs. After their loan closes, it is sold to PHFA, which services it for the life of the loan.

Borrowers who are eligible may receive this grant under PHFA's Preferred home loan program. They must comply with the HFA Preferred program requirements to be eligible for the grant. Maximum financing is not required to receive the grant. It does not require repayment, and it currently is available year-round. This new grant will be offered indefinitely, and its availability can change in the future. Borrowers may also combine a pre-purchase counseling credit of $300 with this offer.

The HFA Preferred program is a conventional loan product that provides funding for eligible homebuyers to purchase or refinance a home up to 97% of the purchase price or appraised value, whichever is less, with a maximum combined loan-to-value of 105%, according to the PHFA. Grant funds may also be used with other PHFA homebuyer programs, including the Keystone Advantage Assistance Loan and the HomeStyle Renovation and Mortgage Credit Certificate programs.

 
About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Mar 16, 2021
HUD Freezes Foreclosures On FHA Mortgages In Texas Flood Zone

Kerr County homeowners among hardest hit in disaster that’s claimed more than 100 lives

Jul 09, 2025
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions