Down Payment Assistance in Pennsylvania and New Jersey

By Mark Wilkins | The Wilkins Lending Team at Movement Mortgage

You may be closer to buying a home than your savings account suggests. If you can afford the full monthly payment but need help with the upfront costs, down payment assistance is worth reviewing before you decide to wait.

For buyers in Bucks County, Philadelphia and New Jersey, the options can include state housing agency programs, local assistance and lender programs. The right fit depends on your income, credit, property location and how long you expect to keep the home and mortgage.

How down payment assistance works

Assistance can help cover your down payment, closing costs or both. Some programs offer grants. Others provide second mortgages that must be repaid or can be forgiven after you meet specific requirements.

That distinction matters. Before choosing a program, ask whether it adds a monthly payment and what happens if you sell, move out or refinance. Help with the down payment also doesn’t automatically cover every expense at settlement.

PHFA assistance for Pennsylvania buyers

The Pennsylvania Housing Finance Agency, or PHFA, offers home purchase financing and assistance options for eligible buyers. One option is the Keystone Forgivable in Ten Years Loan Program, known as K-FIT.

K-FIT provides 5% of the lesser of the purchase price or appraised value toward eligible down payment and closing costs. The assistance is a second mortgage, forgiven at 10% per year over 10 years under program terms. PHFA lists a minimum credit score of 660 for K-FIT.

For someone buying in Bucks County or Philadelphia, PHFA is worth comparing with other financing options. You must qualify for an eligible PHFA first mortgage and meet the applicable program requirements. [1]

Movement Boost for FHA buyers

Movement Boost can help qualified FHA borrowers cover the required 3.5% down payment. A 5% assistance option includes another 1.5% toward closing costs.

The assistance comes through a repayable second mortgage. It adds a separate loan payment, so we need to review the combined payment and the cash you’ll still need at closing.

Movement’s current program page lists no income limits and allows both first-time and repeat buyers. That makes it an option to review if you earn too much for a different assistance program. Credit, underwriting and property requirements still apply. [2]

Philly First Home for Philadelphia purchases

Buying within Philadelphia city limits? Philly First Home offers eligible buyers up to $10,000 or 6% of the purchase price, whichever is less, toward down payment and closing costs.

You must meet income requirements and be a first-time buyer or have not owned a home in the past three years. Eligible properties include single-family homes and duplexes in Philadelphia; condos are not eligible.

Complete the required City-funded homeownership counseling before signing an agreement of sale. Waiting until you’re under contract can cost you this opportunity.

Funding is limited. The City also states that the grant must be repaid if you move or refinance before living in the home for 15 years. Confirm the terms and any plans to combine assistance with your counselor and lender. [3]

What about Movement Dream to Own

If you’ve come across Movement Dream to Own while researching assistance, ask me to check its current availability and guidelines for your purchase. Older descriptions online should not be used to assume today’s assistance amount, mortgage insurance treatment or repayment terms.

New Jersey state bond and NJHMFA programs

If you’re shopping in New Jersey, ask about the New Jersey Housing and Mortgage Finance Agency, or NJHMFA. These are programs buyers may hear described as New Jersey state bond programs.

NJHMFA’s Down Payment Assistance Program offers eligible first-time buyers up to $15,000, depending on the county. The assistance is an interest-free second loan with no monthly payment and five-year forgiveness requirements. It must be paired with an eligible NJHMFA first mortgage through a participating lender. Income and purchase price limits apply. [4]

The county matters. Published NJHMFA materials list $10,000 in assistance for Burlington, Camden and Gloucester counties, compared with $15,000 in Mercer County. Eligible first-generation buyers may qualify for another $7,000, bringing those totals to $17,000 or $22,000. First-generation eligibility has a specific definition; being a first-time buyer alone is not enough. [5]

NJHMFA also offers HFA Advantage, a conventional mortgage option that can be paired with its down payment assistance. Forgiveness requires meeting the occupancy and mortgage conditions, including restrictions on refinancing during the five-year period. [6]

Compare the full cost before you choose

The largest assistance amount won’t always produce the most comfortable payment. I recommend comparing the cash needed at closing, the full monthly payment and the repayment terms side by side.

Include property taxes, homeowners insurance, mortgage insurance and any HOA fees in that budget. Keep money available for repairs and the expenses that come with moving.

Before you rule out buying because of the down payment, let’s review your numbers. We can check which programs fit your situation and what the purchase would actually cost before you go under contract.

Mark Wilkins | The Wilkins Lending Team at Movement Mortgage
NMLS #147661 | Licensed in PA, NJ and FL
Call or text 215-378-9272
Mark.Wilkins@Movement.com
www.TheMortgageMark.com

Program details checked October 30, 2026. Assistance is subject to eligibility, underwriting, funding availability and program terms. This is not a commitment to lend.