The City of Philadelphia has expanded homeownership support by offering first-time home buyers grants of 6 percent of the home purchase price, up to $10,000.  Grants can be used to reduce mortgage principal, cover down payments or cover loan closing costs.  The program is available to home buyers earning up to 120 percent of area median income (AMI), adjusted for family size.  It is funded by a five-year, $20 million per year commitment to the City’s Housing Trust Fund, approved as part of a broader housing assistance strategy negotiated by Council President Darrell L. Clarke with support from District 9 Councilwoman Cherelle Parker.  Other components of this strategy include the Restore Repair Renew program, which is also available to homeowners earning up to 120 percent of AMI.

Philly First Home fills a substantial gap in the marketplace, removing barriers to homeownership for 1,012 families as of mid-January 2020.  About one-third of buyers are middle income, defined as earning between 80 percent and 120 percent of AMI. This group does not qualify for most other government subsidy programs, and must be able to cover mortgage, insurance, taxes and maintenance through their income after other debt.  The Philly First Home program opens opportunities for accruing wealth through housing to the middle-income group, along with families earning less than 80 percent of AMI who may also be eligible for other forms of assistance. Almost 60 percent of all program participants self-identified as African American, and 28 percent identified as Hispanic or Latino.

Philly First Home also brings new resources to neighborhoods, with $8.7 million in grants enabling over $162 million in investment by a new generation of homeowners and the financial institutions providing their mortgages.  Participation is concentrated in the middle neighborhoods of north Philadelphia, although there are other concentrations city-wide. The average home purchase price is just over $160,000. 

The Philadelphia Housing Development Corporation is administering the program. Eligible properties are single family or duplexes; condominiums are not eligible. Income-eligible home buyers must complete a City-funded housing counseling program prior to signing an Agreement of Sale.