Philadelphia is one of the more affordable big East Coast cities, and its flagship program — Philly First Home — hands first-time buyers a straightforward grant of up to $10,000 toward the purchase.
This guide focuses on what first-time buyers in Philadelphia specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Philadelphia’s own first-time buyer programs
The city’s help is run through the Philadelphia Housing Development Corporation:
- Philly First Home — a grant of up to $10,000 or 6% of the purchase price (whichever is lower) from the Philadelphia Housing Development Corporation, applied to your down payment, closing costs, or principal, for first-time buyers citywide
- Home Buy Now — an employer-matched down payment grant available to employees of participating Philadelphia employers (amounts vary by employer)
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Philadelphia
On top of Philadelphia’s local help, every Pennsylvania buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to Pennsylvania first-time home buyer programs, and the wider local picture in our Pennsylvania first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Philadelphia
The Philadelphia metro median home price is around $360,000, and the city itself is lower — roughly $260,000 to $280,000 — making Philadelphia one of the most attainable large metros in the Northeast. On a city rowhouse in that range, a $10,000 Philly First Home grant covers a meaningful slice of the cash you need to close.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Philadelphia buyers
Most Philadelphia first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Philadelphia
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Philadelphia and Pennsylvania program requires one, and it is usually free.
- Find a lender who works with both Philadelphia and Pennsylvania programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Philadelphia first-time buyer FAQ
What down payment help is available in Philadelphia?
The main program is Philly First Home, a grant of up to $10,000 or 6% of the price (whichever is lower) from the Philadelphia Housing Development Corporation. It can go toward your down payment, closing costs, or principal. If your employer participates, the Home Buy Now program adds a matching grant on top. Both require homeownership counseling before you sign.
Can I combine Philadelphia city programs with Pennsylvania state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a Pennsylvania state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our Pennsylvania programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Philadelphia?
Yes — Philly First Home requires that you be a first-time buyer or have not owned a home in the past three years, buying a primary residence within the City of Philadelphia. Household income limits apply by family size (roughly $85,900 for one person up to about $162,000 for a large household), and one-on-one counseling is required before you sign an Agreement of Sale.
How do I get the Philly First Home grant?
To use Philly First Home, you complete one-on-one homeownership counseling with a City-funded agency before signing your Agreement of Sale, then work with a participating lender who applies the grant — up to $10,000 or 6% of the price — at closing. You must be a first-time buyer within the income limits, buying a primary residence in Philadelphia. Confirm current income limits and the counseling requirement with the Philadelphia Housing Development Corporation.