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Get Matched Free →Homebuyer Programs in Scranton, PA (2026)
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
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Scranton Homebuyer Program | Forgivable Loan | 10% of purchase price, minimum $5,000, up to $20,000 | Yes | View → |
| Lackawanna County Homebuyer Program | Forgivable Loan | Minimum $7,500 | Yes | View → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| Habitat for Humanity of Lackawanna County Homeownership Program | Zero-Interest Loan | Affordable mortgage on a Habitat-built home | No | View → |
| NACA Purchase Program | Zero-Interest Loan | No down payment, no closing costs, no PMI, no fees, and below-market fixed interest rate | No | View → |
| 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:
- Forgivable Loan
- Amount:
- 10% of purchase price, minimum $5,000, up to $20,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Minimum $7,500
- First-time only:
- Yes
- 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage on a Habitat-built home
- First-time only:
- No
- 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
- 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
How to Apply
- 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
- 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.
- 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.
- 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.
- 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.
- 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.