Philadelphia launches Turn the Key mortgage program for affordable homeownership

The Special Stated Meeting of the Philadelphia City Council on March 24, 2024, focused on significant initiatives aimed at improving housing affordability for residents. A key highlight was the introduction of the "1 Philly Mortgage Program," designed to assist essential workers and first-time homebuyers in accessing affordable housing options.

The 1 Philly Mortgage Program offers a 30-year fixed-rate mortgage with a 3% down payment and competitive interest rates, eliminating the need for private mortgage insurance. This initiative aims to make homeownership more attainable for Philadelphians, particularly in neighborhoods where rental properties have been overbuilt and many homes remain vacant.

Another major topic discussed was the "Turn the Key" program, which has been instrumental in helping working families transition from renting to owning homes. Since its launch in 2021, the program has successfully developed and sold 195 homes, with an additional 590 homes either under agreement, under construction, or approved for development. The goal is to reach a total of 1,000 homes, with plans to enhance the program further.

The Turn the Key initiative focuses on reducing construction costs by utilizing publicly owned vacant land and providing substantial financial assistance to homebuyers, which can total up to $85,000. The program partners with preferred lenders and developers committed to using high-quality materials, ensuring that affordable housing remains aesthetically appealing and dignified.

City officials emphasized the importance of these programs in creating generational wealth for families and improving the overall quality of life in Philadelphia. The meeting underscored the city's commitment to addressing housing challenges and making homeownership a reality for more residents.