One of our greatest joys in our work is helping first time buyers realize their dreams, especially those who thought that buying a home may have been out of reach. We think everyone should have a stable place to call their own, and have learned a lot of tips and tricks to help aspiring buyers approach the home buying journey with confidence.

While we don’t have a solution to make homeownership a reality for all buyers, we have learned a lot about grants and programs that help ease the burden of saving and qualifying for your first home. The short answer is, start early and ask a lot of questions!

Looking ahead to 2025, here are some of the programs on our radar.

Homebuying Grants to Pursue

There are several federal and state-supported grants and loans designed to help ease the financial burden of buying a home, especially for first-time buyers. These programs focus on reducing upfront costs like down payments and closing fees, making homeownership more attainable.

Federal Programs

Some of the most compelling federal programs at the moment include:

1. FHA Loans (Federal Housing Administration)

FHA loans have two major selling points:

Lower Down Payments: FHA loans allow down payments as low as 3.5%, significantly less than the typical 20% requirement. This can make buying a home more accessible, especially for those who haven’t saved a large amount for a down payment.
More Flexible Qualification Criteria: FHA loans tend to have lower credit score requirements than traditional loans, providing more opportunities for people to be competitive in the market.

While FHA loans are particularly beneficial for first-time homebuyers, anyone who meets the qualifications can apply.

2. USDA Loans (U.S. Department of Agriculture)

Like FHA loans, USDA loans have two major selling points:

No Down Payment for Rural Areas: USDA loans are zero-down loans specifically aimed at rural and suburban homebuyers. They can be a great option for people looking to buy in less populated areas.
Competitive Interest Rates: The USDA offers lower interest rates compared to some other federal loan programs, reducing the overall cost of the loan.

Eligibility for USDA loans is typically based on household income, credit, and the location of the property. Buyers must live in eligible rural areas as defined by the USDA.

3. VA Loans (U.S. Department of Veterans Affairs)

The biggest benefits of VA loans include:

No Down Payment and No PMI: VA loans allow buyers to purchase without a down payment and do not require private mortgage insurance (PMI), making homeownership highly affordable.
Lower Closing Costs: VA loans also cap closing costs, and some fees may be paid by the seller, reducing out-of-pocket costs for veterans.

VA loans are perfect for veterans, active-duty military, and certain members of the National Guard and Reserves.

State Homebuying Programs

Many states have their own sponsored programs to make homebuying more accessible, so check with your real estate agent and loan officer to see what’s available in your region.

Pennsylvania Housing Finance Agency (PHFA) Loans

The PHFA offers loans with low interest and down payment assistance to first-time homebuyers and, in some cases, repeat buyers in targeted areas. These loans include options like fixed-rate conventional, FHA, VA, and USDA loans with down payment and closing cost assistance.

A perfect example: The PHFA offers the Keystone Advantage Assistance Loan Program, which provides down payment and/or closing cost assistance in the form of a second loan of up to 4% of the purchase price or market value.

Homebuying Grants Unique to Pittsburgh

You’ll occasionally find unique homebuying grant opportunities in the greater Pittsburgh area. Here are two to keep an eye on throughout the year:

Pittsburgh Urban Redevelopment Authority (URA)

Pittsburgh’s URA offers several financing options to help buyers secure affordable housing. For example, the URA Housing Opportunity Fund Programs offers up to $7,500 in down payment assistance for eligible buyers, helping bridge financial gaps and allowing more people to become homeowners in Pittsburgh.

Penn Hills Homebuyer Assistance Program

Action Housing offers up to nearly $15,000 to low- and medium-income homebuyers in Penn Hills through the Penn Hills Homebuyer Assistance Program. While these funds are technically provided as a loan, the full amount is forgivable if you remain in the home for at least five years.

Requirements apply, so be sure to read through the program’s full list of rules for a deeper understanding of whether or not this could apply to you!

Allegheny County’s Residential Finance Authority

Allegheny County’s Residential Finance Authority occasionally sponsors the First-Time Homebuyer Program to assist local first-time homebuyers with:

Low-Interest, Fixed-Rate Mortgages
Down Payments
Closing Costs

The First-Time Homebuyer Program is currently inactive, but you can check on the Residential Finance Authority webpage for updates on the program.

3 Strategies For Finding New Homebuyer Grants

If you’re looking for additional homebuying assistance in your area, follow these recommendations:

1. Meet Three or Four Different Good Lenders

Every lender has access to different programs that many people are unfamiliar with. Meeting with a variety of lenders increases your chances of stumbling across unique programs that can ease your financial burden while buying a home.

2. Check With the Local Banks

Local banks regularly offer unique local programs to encourage homebuying in the immediate region. Around Pittsburgh, First Commonwealth Bank and First National Bank are two excellent resources to check with.

3. Search For Neighborhood-Specific Grants And Loans

Cities, towns, and neighborhoods that are actively investing in themselves (like Penn Hills) occasionally offer homebuying grants to attract new homeowners and long-time residents who can further support the local economy while adding to the community.

Find Additional Real Estate Support

For even more Pittsburgh real estate support, contact us! In addition to helping you find the perfect home for your lifestyle and budget, we’ll connect you with our robust network of lenders who can help you find as much financial assistance as possible!