See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 1, 2026

Homebuyer Programs in Scranton, PA (2026)

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

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.

City 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 →

City of Scranton Homebuyer Program

Type:: Forgivable Loan
Amount:: 10% of purchase price, minimum $5,000, up to $20,000
First-time only:: Yes

County Programs in Lackawanna County

Program Name	Type	Amount	First-Time Only	Details
Lackawanna County Homebuyer Program	Forgivable Loan	Minimum $7,500	Yes	View →

Lackawanna County Homebuyer Program

Type:: Forgivable Loan
Amount:: Minimum $7,500
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 →

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

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 →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
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 →

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

Free eligibility check

15 programs available in Scranton. See which ones you qualify for.

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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: $59,300). The Lackawanna County program allows up to 100% AMI, offering a higher threshold.

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.

Frequently Asked Questions

How much down payment assistance can I get in Scranton?+

The City of Scranton Homebuyer Program provides 10% of your purchase price, with a minimum of $5,000 and a maximum of $20,000 as a forgivable loan. The Lackawanna County Homebuyer Program adds a minimum of $7,500 in forgivable loan assistance. You can also apply for state programs including the PHFA Keystone Advantage Assistance Loan (up to 4% of purchase price or $6,000), the K-FIT forgivable loan (5% of the lesser of purchase price or appraised value), and the HOMEstead Program (up to $10,000). Combining city, county, and state programs could provide well over $30,000 in total assistance.

Do I have to be a first-time homebuyer?+

Yes, both the City of Scranton and Lackawanna County programs require first-time buyer status. This means you must not have owned a home in the past 3 years. Most PHFA state programs also require first-time buyer status under the same definition.

What are the income limits for Scranton homebuyer programs?+

The City of Scranton program limits income to 80% of AMI: $41,550 for 1 person, $47,450 for 2, $53,000 for 3, $59,300 for 4, $64,050 for 5. The Lackawanna County program has higher limits at 100% of HUD AMI, so if you earn too much for the city program, you may still qualify for county assistance.

What homebuyer education is required?+

Both the city and county programs require homebuyer education before you can apply. NeighborWorks Northeastern Pennsylvania at 815 Smith St, Scranton, PA 18504 offers HUD-approved courses and one-on-one counseling. Call 570-558-2490 to enroll. Ask about discount codes to make the course free.

Can I stack the City of Scranton and Lackawanna County programs together?+

Both programs are administered through NeighborWorks NEPA and are designed to work together. Your counselor can help you determine which programs you qualify for and how to maximize your total assistance. Both applications are processed through NeighborWorks after completing education and counseling.