Several states offer low interest home loans and other housing assistance for qualified low- and moderate-income buyers. For example, the Pennsylvania Housing Finance Agency (PFHA) offers low-interest, fixed-rate 30-year mortgages. These loans are offered through approved lenders. After closing, the state agency acquires the loans and borrowers make payments directly to the agency.

Under federal law, to qualify for state-sponsored home purchase loans, buyers must fall within certain annual income limits. The loans are typically only available to first-time buyers or to buyers who have not owned and occupied a primary residence for a period of time. Limits also apply to the purchase price of the home; these limits often vary by location within the state. Buyers may be required to take credit counseling and/or homebuyer education courses.

In addition to low-interest loans, borrowers also may be eligible for down payment and/or closing cost assistance.

Learn more from the Pennsylvania Housing Finance Agency.

Learn more from the New Jersey Housing Resource Center.

Learn more from the Delaware State Housing Authority.

We can tell you more about state bond programs.