Turn the Key

What is Turn the Key?

Turn the Key is a second mortgage for homebuyers in Philadelphia, Pennsylvania, administered by Philadelphia Housing Development Corporation (PHDC).

• Turn the Key is a PHDC program under Mayor Parker's H.O.M.E. Initiative that builds new homes on formerly city-owned vacant land and sells them to income-eligible first-time homebuyers at below-market prices. Eligible buyers can receive up to $75,000 in mortgage buydown assistance — secured by a 20-year forgivable note recorded against the property — plus up to $10,000 from the Philly First Home grant for down payment and settlement costs. Buyers must earn no more than 100% of AMI, finance through an approved Turn the Key lender, and complete City-funded one-on-one homeownership counseling before signing an Agreement of Sale. Resale is restricted to other income-qualified buyers; the Philadelphia Land Bank recalculates the price on a sale within 15 years. After year 20, once the soft mortgage is satisfied, the home may be sold at full value.
• Up to $75,000 mortgage buydown assistance.
• Up to $10,000 Philly First Home grant toward down payment and settlement costs.
• Below-market price on a newly constructed home.
• Buydown is a 20-year forgivable note — fully forgiven if you stay.
• Funding comes from City of Philadelphia — vacant city-owned land conveyed via the Philadelphia Land Bank, with PHDC-administered mortgage buydown subsidy; part of Mayor Cherelle L. Parker's Housing Opportunities Made Easy (H.O.M.E.) Initiative.

How much assistance does it provide?

Turn the Key offers up to $75,000 in assistance.

• Buyer contribution: Buyers should expect to bring roughly $3,000–$5,000 toward down payment, closing costs and other related home-buying expenses.
• The program can be combined with Philly First Home $10,000 grant (bundled with Turn the Key for closing costs).
• Amounts are the program's published maximums, not an offer — Philadelphia Housing Development Corporation (PHDC) determines any individual award.

Do you have to pay it back?

Turn the Key is forgiven after 20 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, refinance, or loss of owner-occupancy before the 20-year forgivable note is satisfied; the unforgiven portion becomes due.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Turn the Key is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Turn the Key limits household income to 100% of the area median income, which varies by county and household size.

• Household income may be no higher than 100% of Area Median Income for the household size, using gross income for all family members who will live in the home. Maximum annual household 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; add $9,800 for each additional person (no maximum household size). The $122,700 stored in income_limit_amount is the 4-person figure. Note: the PHDC FAQ page still shows an older 1-person figure of $73,780 from a prior AMI year — the table above (100% AMI, same schedule used for Philly First Home) is current.
• 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?

Turn the Key can be used for Single Family.

• New construction is eligible.

Where does it apply?

Turn the Key serves buyers purchasing in Philadelphia, Pennsylvania.

• The program targets specific areas: Homes are built on formerly city-owned vacant parcels across designated Philadelphia neighborhoods; availability is per-development and rotates as phases sell out.
• Targeted neighborhoods: Currently listed: Carroll Park; Carroll Park — Pastor Allen Phase III; East Kensington/Port Richmond (Martha Street); East Kensington/Port Richmond (CD1); East Parkside; Germantown Phase 1; Germantown Phase 2; Hartranft (9th & Diamond); Ludlow (Darien & Oxford); Nicetown-Tioga; Point Breeze — Civetta; Sharswood; Strawberry Mansion — 31st Street; West Poplar; West Kensington; Whitman. Sold out: Brewerytown (Civetta), East Kensington (William Street), East Kensington/Port Richmond, Grays Ferry (Dover/Myrtlewood, Sears Street, and general), North Central, Point Breeze, Sharswood/Blumberg, Strawberry Mansion, Wharton/South Philadelphia. Availability changes — check phdcphila.org/turnthekey for the current list.

How do you apply?

Applications for Turn the Key go through Philadelphia Housing Development Corporation (PHDC), 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 PHDC-approved one-on-one homeownership counseling agencies (required before signing an Agreement of Sale).

2. 2

   Contact Philadelphia Housing Development Corporation (PHDC) to reserve funds

   Funds are reserved through Online interest form and account at https://phdc.my.site.com/TTKResidentPrograms; PHDC prequalification screening, then referral to the developer sales team as inventory becomes available. Not a waiting list., 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.