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HomeBank LoanPennsylvania First-Time Homebuyer Packages | The Lenders Community

Pennsylvania First-Time Homebuyer Packages | The Lenders Community

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The Keystone Advantage Assistance Loan Program

Eligible homebuyers can receive 4% of the home purchase price up to $6,000 to be used for the down payment and closing costs on a new home purchase. The assistance loan has a 0% interest rate and is amortized over a ten-year term.

Keystone Advantage Assistance can be used in conjunction with the following PHFA first mortgage home purchase loan programs:

  • HFA Preferred™(Lo MI)
  • Keystone Government Loan
  • Keystone Home loan


  • Minimum 660 credit score
  • $500 minimum loan amount
  • Liquid assets not greater than $50,000
  • The Keystone Advantage Assistance program may not be combined with any other PHFA assistance program
  • Keystone Advantage Assistance loans may be used on Conventional, FHA, VA



  • Competitive interest rates
  • Fewer fees
  • 30-year, fixed-rate terms
  • Can be used with conventional, FHA, VA, or RD loan types
  • Possible downpayment and closing cost assistance
  • Your mortgage is serviced by PHFA for the life of the loan


HFA Preferred™(Lo MI)

With the HFA Preferred™(Lo MI) loan, mortgage insurance is provided by private mortgage insurance companies when the borrower uses less than a 20% down payment. Read more


  • The household income cannot exceed the income limits
  • Must be a primary residence
  • The borrower must use at least $1,000 from their own funds
  • Borrowers obtaining the HFA PreferredTM loan may qualify for a PHFA Grant of $500 to be applied towards purchase
  • Must purchase a single unit property, multi-family units do not qualify
  • Homebuyer education courses required


  • FHA loans Government-backed mortgage loan insured by the Federal Housing Adinistration requiring a 3.5% down payment.
  • VA and USDA loans Loans guaranteed by either the Veterans Administration (VA) or Rural Development (RD) require no downpayment.



The Keystone Government Loan Program (K-Gov)

The Keystone Government Loan Program provides first mortgage financing on FHA and VA loans. PHFA does not impose any additional guidelines except as noted below.


  • Your eligibility is determined by the PHFA participating lender
  • There are no income or purchase price limits specific to PHFA (FHA loan limits still apply)
  • First-time homebuyers and repeat buyers eligible


The Keystone Flex with Keystone

The Keystone Flex with Keystone program provides financing with a conventional or government-backed mortgage loan that is forgivable in 10 years. K-FIT provides eligible homebuyers with five percent (5%) of the lesser of the purchase price or appraised value with no maximum dollar limit.


  • You meet the qualifying income requirement
  • Purchase price cannot exceed the Keystone Flex Loan Program Purchase Price Limit
  • 660 minimum FICO score
  • First-time homebuyers and repeat buyers eligible
  • Homebuyer education courses required
  • You meet the eligibility requirements for the K- FIT assistance loan


PHFA’s Keystone Flex Purchase & Improvement with K-FIT loan

Buyers can purchase or improve/repair home and get down payment and closing cost assistance in one transaction. This loan provides buyers up to $30,000 to make eligible repairs and improvements to the home. Home repairs can be made to single-family homes, duplexes, manufactured housing, and PUDs.


  • You meet the qualifying income requirement
  • Purchase price cannot exceed the Keystone Flex Loan Program Purchase Price Limit
  • 660 minimum FICO score
  • First-time homebuyers and repeat buyers eligible
  • You are completing eligible repairs and/or improvements up to $30,000 to the subject property
  • Homebuyer education courses required


National First-Time Homebuyer Loan Programs

  • FHA LoansFHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
  • Conventional LoansConventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
  • USDA LoansUSDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
  • VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
  • HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.


Helpful Resources


Statewide and Regional Programs

Getting Started

Buying a Home

Owning and Maintaining Your Home

Other Pennsylvania Resources



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