First Home in Reach: Down Payment Help in PA and Delaware
Mortgage rates eased this week, and for first-time buyers in Pennsylvania and Delaware, the bigger story may be the down payment help that many people never hear about. Here's where rates stand, which programs can help with your cash to close, and three moves to make this fall.
Where rates stand
Freddie Mac's 30-year fixed rate averaged 7.32% on October 22, down from 7.40% the week before. That's still above last year's 6.19%, but it's a step in the right direction.
Here's what that means in real dollars. On a $300,000 home with 3.5% down, principal and interest is about $1,989 a month at 7.32%, versus about $1,771 at last year's rate. That gap is exactly why the help below matters.
The down payment is the hardest part
For most first-time buyers, the wall isn't the monthly payment; it's the cash to close. Just 3.5% down on a $300,000 home is $10,500, before closing costs. Here's help that exists right now:
Pennsylvania (PHFA Keystone Advantage Assistance): up to 4% of the price or $6,000, whichever is less, as a 0% loan repaid over 10 years. You'll need a 660 credit score.
Philadelphia (Philly First Home): a grant of up to $10,000 or 6% of the price, whichever is less, for buyers who meet income limits and complete free housing counseling before signing an agreement of sale. Funding can run out, so check availability early.
Delaware (DSHA): the First State Home Loan offers 3% assistance and Keys4You offers 4%; first-time buyers in the Welcome Home program can also access Take5 at 5%. These are 0% second mortgages with no monthly payment, due when you sell, refinance, or move out. The minimum credit score is 620.
Good to know: "first-time buyer" usually means you haven't owned a home in the past three years, so even past owners may qualify.
Three moves to make this fall
Check your credit now. A score of 620 to 660 is the line for most of these programs, and a few points can open doors.
Take a homebuyer education class. It's free through City-funded agencies in Philadelphia and required for Philly First Home.
Get pre-approved with a lender who works with PHFA or DSHA. Not every lender does, and the assistance has to be built into your loan from the start.
The bottom line
Rates are still high, but they're easing, and real help with your cash to close is available. The buyers who win are the ones who line up their programs before they fall in love with a house.
Let's map your path
If you, or someone you know, is thinking about buying a first home in the next 6 to 12 months, let's talk. I'll help you sort out which programs fit, connect you with the right lender, and build a plan you feel good about. Book a call with me here.
Invest in you, succeed with me.
Marlon Belfon
Partner, Realty ONE Group Focus Philly
Realty ONE Group Restore
Licensed in Pennsylvania, Delaware and Maryland
215-800-4474 | [email protected]
Sources: Freddie Mac Primary Mortgage Market Survey, October 22, 2026; PHFA Keystone Advantage Assistance; PHDC Philly First Home; Delaware State Housing Authority lender training, April 2026. Program terms, income limits and funding change often; confirm with the agency or a participating lender. Payment examples are estimates of principal and interest only on a 30-year fixed loan and do not include taxes, insurance, HOA dues, or mortgage insurance; your actual rate and payment will vary. This is not financial or tax advice.
