FHA & PHFA Buyer Options in Pennsylvania | Team Sechman

FHA & PHFA Buyer Options in Pennsylvania

If you’re dreaming of homeownership in Central Pennsylvania but unsure how to get there financially, you’re not alone. The good news? Two powerful programs — FHA Loans and PHFA Assistance — can help you buy a home with less cash out of pocket and more confidence at closing.

✅ What is an FHA Loan?

An FHA loan is a mortgage backed by the Federal Housing Administration. It’s one of the most popular financing tools for first-time buyers and those with limited down payment funds. Here’s why:

  • Low down payment: As little as 3.5%
  • Flexible credit: Scores as low as 580 may qualify
  • Seller assist: Up to 6% of the price can go toward closing costs
  • Gift funds allowed: Family can help cover your down payment
💡 Pro Tip: FHA loans can be combined with PHFA assistance for even more buying power.
People discussing home financing at table

🏛️ What is PHFA?

The Pennsylvania Housing Finance Agency (PHFA) is a state-backed program that provides down payment and closing cost assistance — plus affordable loan products — to help more Pennsylvanians become homeowners.

Top PHFA Programs for Homebuyers

  • K-FIT Program: Up to 5% of the purchase price in assistance — fully forgivable after 10 years.
  • Keystone Advantage Loan: Up to $6,000 in a 0% interest loan, repayable over 10 years.
  • HOMEstead: Up to $10,000 forgiven over 5 years (based on income limits).

📚 Do I Need to Take a Class?

Yes — PHFA requires you to complete a homebuyer education course. It’s simple, educational, and often available online. We’ll connect you with approved providers to make this a breeze.

🏠 What Types of Homes Qualify?

Most homes in Central PA qualify, including:

  • Single-family homes, townhouses, and select condos
  • Homes used as your primary residence
  • Properties within FHA and PHFA loan limits (usually under $500,000 in this area)
📍 These programs are especially effective in communities like Annville, Palmyra, Lebanon, and Hershey, where price points often align perfectly with program guidelines.

🔗 FHA + PHFA = Big Advantage

Here’s where it gets good: You can combine FHA financing with PHFA assistance to reduce your upfront costs — potentially bringing your total cash needed to close under $2,000. For many first-time buyers, that’s the key to unlocking the door to homeownership.

Ready to explore your options?
Let’s schedule a no-pressure buyer consultation and walk through your personalized path to homeownership.

Click here to schedule a call 📅

👋 Final Thoughts

You don’t need to have all the answers — that’s what we’re here for. Whether you’re comparing FHA to conventional, looking into PHFA assistance, or just trying to figure out where to begin, we’ve got the experience and connections to guide you every step of the way.

Let’s Talk — No Pressure