Philly First Home, Homebuyer Grants, Philadelphia Housing

Understanding the Philly First Home Program for First-Time Homebuyers

The Philly First Home program is a cornerstone of Philadelphia housing policy, designed to make homeownership more attainable for first-time homebuyers. Administered by the City of Philadelphia, this initiative offers up to $10,000 in homebuyer grants to help cover down payment and closing costs, easing one of the biggest financial hurdles buyers face. Download Booklet Now!

What Is the Philly First Home Program?

Philly First Home is a City of Philadelphia grant program that provides eligible first-time homebuyers with up to $10,000, or 6% of the purchase price, whichever is less, to use toward down payment and closing costs (phila.gov). Unlike a traditional loan, this assistance is structured as a grant that becomes fully forgivable after 15 years of continuous owner-occupancy. If you sell, move, or refinance before the 15-year mark, the grant generally must be repaid to the City.

The program operates year-round, subject to available funding, and is a key part of the City’s broader effort to expand affordable homeownership opportunities for low- and moderate-income residents. Download Booklet Now!

Eligibility Requirements for Philly First Home

To qualify for this down payment assistance, applicants must meet several core eligibility requirements. These criteria ensure funds are directed to first-time homebuyers who need support most and who intend to live in the home as their primary residence.

• First-time homebuyer status: You must be a first-time buyer or have not owned a home in the past three years (phila.gov).

• Owner-occupancy: The property must be your primary residence, and you must intend to live there for at least 15 years to avoid repayment obligations.

• Completed counseling: You must finish mandatory, city-funded homeownership counseling before signing an Agreement of Sale.

Income Limits and Household Eligibility

Philly First Home is targeted to households with incomes at or below roughly 80% of the area median income (AMI), with specific income limits set by household size. For 2026, maximum gross annual income ranges from $85,900 for a one-person household to $162,000 for an eight-person household (phdcphila.org).

These income limits are based on the combined earnings of all adults who will live in the home, not just the primary borrower. When evaluating eligibility requirements, buyers should gather recent pay stubs, tax returns, and other documentation so counselors can confirm that household income falls within the program’s guidelines. Download Booklet Now!

Eligible Property Types in Philadelphia

Philly First Home applies only to certain property types within the city limits. Eligible properties include:

• Single-family homes located in the City of Philadelphia

• Duplexes within Philadelphia city boundaries

Condominiums are not eligible under current program rules (phila.gov). Buyers considering a condo or properties outside Philadelphia will need to explore alternative homebuyer grants or down payment assistance programs.

Philly First Home focuses on single-family homes and duplexes within city limits.

Mandatory Homeownership Counseling

A defining feature of the program is its mandatory counseling requirement. Before you sign an Agreement of Sale, you must complete one-on-one homeownership counseling through a City-approved agency, funded by Philadelphia. This counseling covers budgeting, credit, mortgage options, Philadelphia housing programs, and the responsibilities of owning a home.

Counseling not only satisfies a key eligibility requirement but also positions first-time homebuyers to make informed decisions, avoid predatory lending, and understand how homebuyer grants like Philly First Home fit into their overall financing strategy. Download Booklet Now!

How the Grant Helps With Down Payment and Closing Costs

For many first-time homebuyers, saving enough for both the down payment and closing costs is the greatest barrier to purchasing a home. Philly First Home directly addresses this challenge by allowing the grant to be applied to either or both of these expenses, up to $10,000 or 6% of the purchase price.

In practice, this down payment assistance can significantly reduce the amount of cash a buyer needs at closing. For example, on a $200,000 home, a buyer could potentially receive the full $10,000 grant. That support might cover a large portion of a 3%–5% down payment and still leave funds available for closing costs such as lender fees, title insurance, and prepaid taxes. By lowering the upfront cash requirement, the program helps more households transition from renting to owning in Philadelphia. Download Booklet Now!

Next Steps for Prospective Applicants

If you are considering buying a home in Philadelphia, start by confirming that you meet the core eligibility requirements: first-time buyer status, income limits, and plans to purchase a qualifying single-family home or duplex. Then, contact a City-approved counseling agency as early as possible to complete the mandatory counseling before signing an Agreement of Sale. Finally, coordinate with your lender and counselor to ensure your Philly First Home application is submitted while funds are still available.

With careful preparation and the support of this targeted homebuyer grant, many Philadelphia residents can overcome the financial barriers of down payment and closing costs and take an important step toward long-term homeownership and stability.