See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated March 31, 2026
Homebuyer Programs in Allentown, PA (2026)
Allentown is the third-largest city in Pennsylvania and the economic center of the Lehigh Valley, with a median home price around $255,000. While Allentown does not offer the same scale of city-funded DPA as Philadelphia or Pittsburgh, buyers here can still access meaningful assistance. The City of Allentown provides down payment and closing cost help for first-time buyers through its CDBG/HOME-funded program, and the Allentown Housing Authority sells fully renovated homes at affordable prices to income-qualified buyers. The FHLBank Pittsburgh First Front Door grant offers up to $15,000 through local participating lenders like First Commonwealth FCU. At the state level, the PHFA Keystone Forgivable in Ten Years (K-FIT) loan provides 5% of the purchase price as a forgivable loan, and the Keystone Advantage Assistance Loan offers up to $6,000 at 0% interest. Nonprofit partners like HADC also develop affordable homes for low-to-moderate income buyers in the area. By combining local, state, and federal programs, Allentown homebuyers can reduce their upfront costs significantly.
City Programs in Allentown
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Allentown Housing Authority Homeownership Program | Zero-Interest Loan | Fully renovated homes sold at approximately $150,000 to income-qualified first-time buyers | Yes | View → |
| City of Allentown First-Time Homebuyer Assistance | Forgivable Loan | Down payment and closing cost assistance (amount varies by funding availability) | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Fully renovated homes sold at approximately $150,000 to income-qualified first-time buyers
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Down payment and closing cost assistance (amount varies by funding availability)
- First-time only:
- Yes
State Programs in Pennsylvania
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| PHFA HFA Preferred Grant | Grant | $500 | No | View → |
| PHFA HOMEstead Program | Forgivable Loan | Up to $10,000 | Yes | View → |
| PHFA Keystone Advantage Assistance Loan | Zero-Interest Loan | Up to 4% of purchase price or market value, or $6,000, whichever is less | No | View → |
| PHFA Keystone Forgivable in Ten Years (K-FIT) | Forgivable Loan | 5% of the lesser of the purchase price or appraised value | No | View → |
- Type:
- Grant
- Amount:
- $500
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Up to 4% of purchase price or market value, or $6,000, whichever is less
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- 5% of the lesser of the purchase price or appraised value
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Pittsburgh First Front Door Program (Lehigh Valley) | Grant | Up to $15,000 grant | Yes | View → |
| Habitat for Humanity of the Lehigh Valley Homeownership Program | Zero-Interest Loan | Affordable no-interest mortgage on a Habitat-built or renovated home | No | View → |
| HADC Home-Buying Assistance Program | Zero-Interest Loan | Affordable homes priced for buyers earning at or below 80% AMI (some at 50% AMI) | No | View → |
- Type:
- Grant
- Amount:
- Up to $15,000 grant
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable no-interest mortgage on a Habitat-built or renovated home
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable homes priced for buyers earning at or below 80% AMI (some at 50% AMI)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most Allentown programs require low-to-moderate income status (at or below 80% of Area Median Income). The PHFA K-FIT program allows borrower income up to $196,200. Review each program's requirements based on your household size and income.
Step 2: Complete homebuyer education. Contact Community Action Lehigh Valley at (610) 849-7802 for HUD-approved homebuyer education seminars offered in English and Spanish at least seven times per year. The 8-hour course earns you a certificate of completion required by most assistance programs.
Step 3: Connect with a housing counselor. Community Action Lehigh Valley provides pre-purchase counseling and can help you understand which programs you qualify for. For the FHLBank First Front Door grant, at least 4 hours of homeownership counseling is required.
Step 4: Get pre-approved for a mortgage. Contact a PHFA-approved participating lender for state programs like K-FIT and Keystone Advantage. For the First Front Door grant, work with First Commonwealth FCU at 450 Union Boulevard, Allentown. Contact the City of Allentown at (610) 439-5999 to learn about city-funded assistance.
Step 5: Find a home within program limits. The PHFA K-FIT program has a $659,000 purchase price limit. The Allentown Housing Authority sells renovated homes at approximately $150,000 to qualified buyers. HADC also develops affordable homes for income-qualified buyers.
Step 6: Apply for assistance programs. Work with your housing counselor and lender to submit applications for each program you qualify for. The FHLBank First Front Door 2026 funding round opens May 19, 2026, so plan ahead.
Step 7: Close on your home. Your lender coordinates the closing with all assistance programs applied. Community Action Lehigh Valley offers 2-hour and 4-hour pre-settlement counseling sessions to prepare you for closing.
Frequently Asked Questions
How much down payment assistance can I get in Allentown?+−
Do I have to be a first-time homebuyer to get assistance in Allentown?+−
What is the maximum home price I can pay and still qualify for assistance?+−
What homebuyer education is required in Allentown?+−
Are there affordable homes available through nonprofits in Allentown?+−
Can I combine multiple assistance programs in Allentown?+−
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