For many aspiring homeowners, saving for a down payment and closing costs is the biggest hurdle. Fortunately, 2025 is bringing new opportunities for buyers in Philadelphia with three incredible grant programs: Philly LIFT, Keys to Equity, and First Front Door (FFD). These programs offer financial assistance to make homeownership more attainable. Here’s an in-depth look at each grant:

K-FIT Program – 5% Forgivable Assistance

The Keystone Forgivable in Ten Years Loan Program (K-FIT) is designed to help homebuyers reduce upfront costs by offering a forgivable second mortgage worth 5% of the purchase price or appraised value. This program supports buyers who meet PHFA’s requirements and want long-term affordability.

Key Requirements:

• Credit Score: Minimum 660
• Assistance Amount: 5% of purchase price or appraised value (whichever is less)
• Minimum Loan Amount: $500
• Asset Limit: No more than $50,000 in liquid funds after closing
• Eligible Uses: Minimum down payment and/or closing costs
• Eligible Properties: Conventional, FHA, VA, or USDA; must meet PHFA first mortgage guidelines
• Income Restriction: High income limit, $140,000+ per household in Philadelphia County

How It Works:

K-FIT provides a second mortgage that is forgiven over 10 years, at 10% per year, as long as the home remains your primary residence. The loan acts as supplemental assistance for upfront costs but does not require repayment if you meet the forgiveness timeline. It pairs with PHFA first-mortgage programs, making it a strong option for buyers who want long-term affordability and low upfront costs.

Citadel Home Help Program – Up to $18,000 in Assistance

The Citadel Home Help Program supports homeownership in Philadelphia by offering up to $18,000 for qualified buyers or homeowners. This program can be used for down payment help, closing costs, rate buy-downs, or upfront mortgage insurance — with no repayment required.

Key Requirements:

• Eligible Properties: Owner-occupied single-family homes, condos, or PUDs in approved Philadelphia neighborhoods
• Buyer Status: First-time buyers not required
• Assistance Amount: Up to $18,000
• Eligible Uses: Down payment assistance, closing costs, interest rate buy-down, mortgage insurance
• Refinance Option: Can also be used for refinancing or improving an existing primary residence
• Combinability: Can be paired with other grants, seller credits, and subordinate financing (within agency/investor limits)

How It Works:

Citadel provides up to $18,000 in grant funds that do not require repayment when used to buy or refinance a primary home in qualifying areas. This assistance can be combined with additional grants and credits, making it one of the most powerful tools for lowering upfront and monthly costs.

Philly LIFT Program – $15,000 in Assistance

Launch Date: February 19, 2025
The Philly LIFT Program is designed to help first-time homebuyers overcome financial barriers by providing up to $15,000 in down payment assistance. This program is ideal for individuals or families who meet specific credit, savings, and income requirements.

Key Requirements:

• Credit Score: Minimum 620
• Savings: Minimum $4,000 in the bank
• Income Limit: Up to 80% of the area median income, which is $67,840 for a household
• Eligible Properties: Owner-occupied duplexes in Philadelphia only
• Lien Type: Subordinate lien (can be in third position)

How It Works:
Philly LIFT operates on a first-come, first-served basis, meaning funds will be distributed until they run out. This program offers a subordinate lien, which means that while it provides financial assistance, it is attached to the home as a secondary mortgage. Buyers should check the repayment terms with their lender.

Keys to Equity – Up to $20,000 in Grants

Launch Date: March 18, 2025 (6 AM EST)
The Keys to Equity Program is a fantastic option for homebuyers looking for forgivable financial assistance. It provides up to $20,000 for down payments and closing costs with no repayment required under specific conditions.

Key Requirements:

• Credit Score: Determined by lender (620 for Fulton Bank)
• Income Limit: Up to 120% of the area median income, based on HUD Income Limits
• Eligible Properties: Single-family homes in Pennsylvania and Delaware
• Grant Type: Forgivable grant (not a subordinate lien)

How It Works:
Keys to Equity provides a true grant, meaning homebuyers receive assistance without taking on additional debt. Unlike Philly LIFT, this program does not require a subordinate lien. However, because it is based on HUD Income Limits, buyers should check their specific county’s guidelines to ensure eligibility. Like other programs, it operates on a first-come, first-served basis, so early application is crucial.

First Front Door (FFD) – Up to $15,000 for First-Time Buyers

Launch Date: April 22, 2025 (6 AM EST)
The First Front Door (FFD) Program offers a 3-to-1 matching grant to help first-time buyers secure their dream home. Buyers contribute $1,000 of their own money and can receive up to $15,000 in assistance for down payments and closing costs.

Key Requirements:

• Credit Score: Determined by lender (620 for Fulton Bank)
• Income Limit: Up to 80% of the area median income, based on HUD Income Limits (Household size is considered)
• Eligible Properties: Single-family homes in Pennsylvania and Delaware
• Grant Type: Forgivable grant (not a subordinate lien)

How It Works:
This program is specifically for first-time homebuyers, which includes anyone who has not owned a home in the past three years. The income eligibility is based on HUD Income Limits and varies by county. Since funds are distributed through participating lenders, buyers must work with an approved lender to access the grant. Similar to the other programs, FFD follows a first-come, first-served system, so preparing documents in advance is highly recommended.

Other Available Programs

In addition to these new grants, other financial assistance programs such as 100% Combo, VLIP, Philly First, and CCAP Secured continue to be available. In some cases, multiple programs can be combined to maximize benefits. A knowledgeable lender can help buyers determine which programs they qualify for and how to layer them effectively.

Next Steps – Get Ready to Apply!

These programs are highly competitive, and funds are limited, so acting fast is key.

To get started, ✅ Schedule time to connect with Noelle to determine eligibility for grant programs. Book a consultation by clicking here.