First-Time Home Buyer Programs in Philadelphia (2026): Grants, PHFA and Turn the Key

Philadelphia first-time home buyer programs at a glance (2026)

Program	How much	Key requirements	Credit score
Philly First Home (City / PHDC)	Up to $10,000 or 6% of the price, whichever is lower	First-time buyer (or no home in 3 years), income limits, free city counseling before the Agreement of Sale, single-family or duplex in Philadelphia	Set by your lender
Turn the Key (City / Land Bank / PHDC)	Up to $75,000 mortgage buydown plus the $10,000 Philly First Home grant	New homes in select neighborhoods, income up to 100% of AMI, counseling, participating lenders; some developments are sold out	Set by participating lenders
PHFA K-FIT	5% of the price or appraised value, forgiven 10% a year over 10 years	Used with a PHFA Keystone Home Loan	660 minimum
PHFA Keystone Advantage	Up to 4% or $6,000, whichever is less; 0% interest, repaid over 10 years	Used with a PHFA first mortgage	660 minimum
PHFA K-DATE	8% (loans up to $150,000, subject to availability) or 5%; 0% interest, no monthly payment	Repaid when you sell, refinance or pay off the loan	660 minimum
First Front Door (FHLBank Pittsburgh)	3-to-1 match, up to $5,000	Through participating lenders	Set by your lender
HomeBuyNow	City matches an employer contribution (minimum $500) up to $4,000	Through participating employers	Set by your lender

Program amounts and funding change, so confirm current details with PHDC and PHFA before you apply.

Philly First Home: the city’s $10,000 grant

Philly First Home helps with your down payment and/or closing costs. To qualify you generally need to:

• Be a first-time buyer, or not have owned a home in the past three years
• Meet the household income limit (below)
• Complete a free City-funded homeownership counseling program before you sign an Agreement of Sale
• Buy a single-family home or duplex in Philadelphia (condominiums are not eligible)

2026 income limits for Philly First Home and Turn the Key

Household size	Maximum gross income
1	$85,900
2	$98,200
3	$110,500
4	$122,700
5	$132,600
6	$142,400
7	$152,200
8	$162,000

Turn the Key: new affordable homes

Turn the Key builds new homes on city-owned land for income-qualified first-time buyers. Buyers can receive up to $75,000 in mortgage buydown assistance plus the $10,000 Philly First Home grant. In the city’s May 2026 announcement, the average Turn the Key home cost about $280,000 before assistance and about $183,500 after grants and buydowns, and the average buyer earned about $45,000 a year. Homes are offered by neighborhood, and some developments have already sold out, so check PHDC’s Turn the Key page for what is currently available.

Why your credit score decides how much help you can get

Many Philadelphia buyers qualify on income but miss out because of credit. Here is how the numbers line up:

• 580: the FHA minimum for 3.5% down (see FHA loan requirements in PA)
• 620–640: what many lenders want before they will approve you
• 660: the minimum for PHFA’s K-FIT, Keystone Advantage and K-DATE assistance
• Below 680: PHFA requires a pre-closing homebuyer course

Raising your score from the low 600s to 660 can be the difference between paying your down payment yourself and getting thousands of dollars in help. Our guides on what to pay down first and how to fix your credit to buy a house explain where to start.

How to buy your first home in Philadelphia, step by step

1. Check your credit and income. Compare your score to the 580, 620 and 660 thresholds above and your income to the limits table.
2. Start free housing counseling. It is required for Philly First Home and Turn the Key, and it must be finished before you sign an Agreement of Sale.
3. Get pre-approved by a participating lender. Ask which city and PHFA programs they offer and which you can combine.
4. Apply for assistance through your lender. Most assistance is reserved through the lender, not applied for separately.
5. Shop for a home within your budget and sign the Agreement of Sale only after counseling is complete.
6. Keep your finances steady until closing. No new credit, big purchases or job changes (see what not to do before a mortgage).

Philadelphia first-time home buyer FAQs

Is there a first-time home buyer grant in Philadelphia?

Yes. Philly First Home provides up to $10,000 or 6% of the purchase price, whichever is lower, toward the down payment and/or closing costs. You must be income-eligible and finish free City-funded housing counseling before you sign an Agreement of Sale.

Who counts as a first-time buyer in Philadelphia?

For Philly First Home and Turn the Key, you qualify if you have never owned a home or have not owned one in the past three years.

What credit score do I need for Philadelphia homebuyer assistance?

It depends on the program. PHFA assistance loans such as Keystone Advantage, K-FIT and K-DATE require a minimum 660 credit score. City programs like Philly First Home do not list a minimum, but you still need to qualify for a mortgage with a participating lender.

Can I combine Philly First Home with PHFA assistance?

Often, yes. Many buyers pair the city grant with a PHFA first mortgage and assistance loan. Your lender will confirm which combinations are allowed for your loan.

Is the housing counseling free?

Yes. Philly First Home requires a free City-funded homeownership counseling program, completed before you sign an Agreement of Sale.

Can I buy a condo with Philly First Home?

No. The program covers single-family homes and duplexes in Philadelphia, not condominiums.

For statewide options, see our guide to first-time homebuyer programs in Pennsylvania.

Sources: PHDC Philly First Home and Turn the Key pages, City of Philadelphia (May 7, 2026 Turn the Key announcement), PHFA Purchase Assistance page and PHDC Housing Resource Guide 2026–27. This guide is for general education. Programs, funding and requirements change; confirm details with PHDC, PHFA and your lender. The Mortgage Ready Program is not a lender. Last reviewed November 2026.