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First-Time Homebuyer Programs in PA, DE and MD (2026): PHFA, DSHA and the Maryland Mortgage Program

Each state we work in runs its own first-time buyer program, and each one works a little differently. Here's what Pennsylvania, Delaware and Maryland offer in 2026, where $0 down actually exists, and the transfer-tax breaks that only Delaware and Maryland give.

House keys on an entry table beside a plant, with a brick home front door behind

Short answer: Each state runs its own first-time buyer program through a state housing agency, and all three pair a 30-year fixed-rate mortgage with down payment and closing cost help. In Pennsylvania, PHFA's Keystone Advantage loan offers up to 4% of the price or $6,000, whichever is less, and its K-FIT loan offers 5% that's forgiven over ten years. In Delaware, DSHA's second mortgages equal 3%, 4% or 5% of the first mortgage at 0% interest with no monthly payment. In Maryland, the Maryland Mortgage Program's 1st Time Advantage comes with options such as a $6,000 loan or 3% to 5% of the first mortgage. True $0-down loans exist too, mainly USDA loans in eligible rural areas and VA loans for eligible veterans.

I'm Brian Foraker, owner of Foraker Realty Co. We're licensed in Pennsylvania, Delaware and Maryland, so a first-time buyer looking in Kennett Square, Newark and Elkton in the same month is normal for us. Each state's program has its own lender list and paperwork, and the right one depends on which side of the line the house is on. Last reviewed October 13, 2026. Program terms and limits change often; your lender confirms what you qualify for. This is general information, not financial advice.

What does PHFA offer first-time buyers in Pennsylvania?

The Pennsylvania Housing Finance Agency (PHFA) offers three first mortgages: the Keystone Home Loan (income and price limits, plus a first-time buyer requirement that varies by county), the Keystone Government Loan and HFA Preferred. Its down payment and closing cost help includes:

  • Keystone Advantage Assistance: up to 4% of the price or market value, or $6,000, whichever is less, repaid over 10 years at 0%.
  • K-FIT (Keystone Forgivable in Ten Years): 5% of the lesser of price or appraised value, no dollar cap, forgiven 10% a year for ten years.
  • K-DATE: 5% (or 8% on loans of $150,000 or less) at 0%, due only when you sell, refinance or pay off the loan.
  • PHFA Grant: $500, no repayment, with HFA Preferred.

The assistance loans require a minimum 660 credit score and limit buyers to $50,000 in assets after funds to close.

What does DSHA offer in Delaware?

The Delaware State Housing Authority runs Welcome Home (first-time buyers only) and Open Door (first-time and repeat buyers). Either can be paired with:

  • First State Home Loan: 0% second mortgage equal to 3% of the first mortgage;
  • Keys4You: 4%;
  • Take5: 5% (Welcome Home only);
  • Smart Start: a first mortgage with no assistance attached.

The second mortgages carry no monthly payment; they're due when you sell, refinance, transfer title or stop living in the home. DSHA requires a 620 minimum credit score, with housing counseling at 659 or below. For New Castle County, DSHA currently lists a Welcome Home income limit of $122,700 for a household of one or two ($141,105 for three or more) and a purchase price limit of $659,385.

What does the Maryland Mortgage Program offer?

The Maryland Department of Housing and Community Development's 1st Time Advantage loan offers the program's lowest 30-year fixed rate for first-time buyers, with down payment options including:

  • 1st Time Advantage 6000: a $6,000 loan at 0%;
  • 3%, 4% or 5% of the first mortgage as a 0% deferred second lien;
  • HomeStart: 6% of the loan, for households at or below 50% of area median income.

You count as a first-time buyer if you haven't owned a principal residence in the past three years, or if you buy in a targeted area; eligible veterans who haven't used the exemption also qualify. An approved homebuyer education class is required.

Is a $0-down home loan real?

Yes, in two main forms:

  • USDA guaranteed loans offer 100% financing with no down payment for buyers whose household income is no more than 115% of the area median, on homes in USDA-eligible areas. They aren't limited to first-time buyers. Chester County isn't all suburbs: in June 2026, five families bought new homes in West Grove through USDA's direct loan program. Whether a specific address in Chester or Cecil County qualifies is a map lookup, so check it on USDA's eligibility site before you fall in love.
  • VA purchase loans require no down payment as long as the price doesn't exceed the appraised value, with no private mortgage insurance, though a one-time VA funding fee may apply.

"Zero down" still leaves closing costs, which is where the state programs' assistance can help. Ask your lender whether a program can be layered with your loan. Our zero-down page walks through the first step.

Are there first-time buyer transfer-tax breaks?

In two of the three states:

  • Delaware: a first-time buyer's share of the state transfer tax drops by 0.5% on the first $400,000 of the price, a saving of up to $2,000, claimed at settlement.
  • Maryland: the state transfer tax falls to 0.25% for a qualifying first-time buyer, and by default the seller pays the state and local transfer taxes and the recordation tax unless the contract says otherwise.
  • Pennsylvania: no statewide first-time buyer break.

We break down the math in Realty Transfer Tax in PA, DE and MD.

Where should a first-time buyer start?

Get pre-approved by a lender that participates in the state program you want, because only approved lenders can originate these loans. Our pre-approval guide explains why that comes before the house search. Then pick an agent who can write a state-correct offer wherever the right house turns up. If you're starting your search, see our buying page or call us at (484) 406-3004.

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