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Homebuyer Programs in Scranton, PA (2026)

Last updated April 1, 2026 | Population: 75,767 | Median home price: $185,000 | Est. closing costs: $3,500 - $5,500

Skyline of Scranton, PA

Scranton is a city of nearly 76,000 residents in Lackawanna County in northeastern Pennsylvania, known as the gateway to the Pocono Mountains. With a median home price around $185,000, Scranton is one of the more affordable housing markets in the state. The City of Scranton Homebuyer Program provides up to $20,000 in forgivable loan assistance for down payment and closing costs, while the Lackawanna County Homebuyer Program offers an additional minimum of $7,500 in forgivable loan assistance with higher income limits. Buyers can also access Pennsylvania state programs including the PHFA Keystone Advantage Assistance Loan and the K-FIT forgivable loan. By stacking city, county, and state programs, eligible first-time buyers in Scranton may be able to cover most or all of their upfront costs on a home purchase.

Top Homebuyer Programs in Scranton

City of Scranton Homebuyer Program
Type:
Forgivable Loan
Amount:
10% of purchase price, minimum $5,000, up to $20,000
First-time only:
Yes
Lackawanna County Homebuyer Program
Type:
Forgivable Loan
Amount:
Minimum $7,500
First-time only:
Yes
FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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
Habitat for Humanity of Lackawanna County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage on a Habitat-built home
First-time only:
No
NACA Purchase Program
Type:
Zero-Interest Loan
Amount:
No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate
First-time only:
No
PHFA HFA Preferred Grant
Type:
Grant
Amount:
$500
First-time only:
No
PHFA HOMEstead Program
Type:
Forgivable Loan
Amount:
Up to $10,000
First-time only:
Yes
PHFA Keystone Advantage Assistance Loan
Type:
Zero-Interest Loan
Amount:
Up to 4% of purchase price or market value, or $6,000, whichever is less
First-time only:
No
PHFA Keystone Forgivable in Ten Years (K-FIT)
Type:
Forgivable Loan
Amount:
5% of the lesser of the purchase price or appraised value
First-time only:
No

How to Apply

  1. Step 1:

    Check your eligibility. You must be a first-time homebuyer (or have not owned a home in 3 years) and meet income limits. The City of Scranton program uses 80% AMI (family of 4

  2. Step 2:

    Complete homebuyer education. NeighborWorks Northeastern Pennsylvania at 815 Smith St, Scranton, PA 18504 offers HUD-approved homebuyer education courses and one-on-one counseling. Call 570-558-2490 to register. Education must be completed before you can apply for assistance.

  3. Step 3:

    Meet with a HUD-Certified Housing Counselor at NeighborWorks NEPA. After completing education and your one-on-one session, you will receive your application for financial assistance.

  4. Step 4:

    Get pre-approved for a mortgage. Consider working with a PHFA-approved lender to access state-level assistance such as the Keystone Advantage Assistance Loan or K-FIT program alongside local funds.

  5. Step 5:

    Find a home within the City of Scranton. The property must be owner-occupied. Your assistance amount will be calculated as 10% of purchase price, minimum $5,000 and up to $20,000.

  6. Step 6:

    Submit your application with all required documentation. Funds are awarded on a first-come, first-served basis, so apply as soon as possible. Contact the City of Scranton OECD at 570-348-4216 for additional questions.

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