PHFA HOMEstead Down Payment and Closing Cost Assistance Loan is a flagship PHFA initiative designed to
expand sustainable homeownership across Pennsylvania. The program pairs competitive first‑mortgage financing
with up to $10,000 (0% loan, forgiven 20%/yr) or related incentives. Borrowers complete HUD‑approved
counseling, gain access to free post‑purchase education, and may layer additional assistance such as Mortgage
Credit Certificates or local grants. Funds are available statewide and disbursed through a network of
PHFA‑approved lenders. Applicants benefit from predictable fixed‑rate terms, no prepayment penalties, and a
streamlined underwriting process that recognizes alternative credit histories. For homeowners undertaking
renovations, escrow accounts ensure contractors are paid as milestones are met, protecting borrowers and
improving project quality.