PHFA Grant ($500)

What is PHFA Grant ($500)?

PHFA Grant ($500) is a grant for homebuyers in Statewide, Pennsylvania, administered by Pennsylvania Housing Finance Agency.

• Borrowers obtaining a PHFA HFA Preferred (Lo MI) loan for a home purchase may qualify for a $500 PHFA Grant applied toward downpayment and closing costs. The grant does not require repayment and must be used toward the purchase. It is available for purchase transactions only (no refinance).
• $500 grant toward downpayment and closing costs.
• No repayment required.
• Available with every HFA Preferred loan (purchase).
• Statewide availability.

How much assistance does it provide?

PHFA Grant ($500) offers up to $500 in assistance.

• Buyer contribution: Borrowers must put down at least $1,000 (the lesser of 1% or $1,000) from their own funds; remaining funds may come from a gift or assistance program.
• Amounts are the program's published maximums, not an offer — Pennsylvania Housing Finance Agency determines any individual award.

Do you have to pay it back?

PHFA Grant ($500) is structured as a grant, so it is not repaid.

• Repayment is triggered by None - grant does not require repayment.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

PHFA Grant ($500) is open to buyers who will live in the home as their primary residence.

What are the income limits?

PHFA Grant ($500) sets its income limit as follows: Borrower household income cannot exceed the HFA Preferred income limits (Appendix B; 80% of AMI per Fannie Mae guidelines), published as county-by-county tables.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

PHFA Grant ($500) can be used for Single Family, Condo, and Manufactured.

• Manufactured homes are eligible.

Where does it apply?

PHFA Grant ($500) serves buyers purchasing in Statewide, Pennsylvania.

How do you apply?

Applications for PHFA Grant ($500) go through Pennsylvania Housing Finance Agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through At least one borrower must complete pre-closing homebuyer education. FICO 680+ may complete online; FICO below 680 requires face-to-face education at a PHFA-approved agency..

2. 2

   Contact Pennsylvania Housing Finance Agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.