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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

Requirements

• 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

Highlights

• 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

Requirements

• 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

Keystone Home Loan Program

These loans are insured by the Pennsylvania Housing Insurance Fund (PHIF) and require a borrower to have a 3 to 5 percent down payment.

• 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.

Requirements

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.

Requirements

• 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.

Requirements

• 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.

Requirements

• 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 Loans – FHA 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 Loans – Conventional 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 Loans – USDA 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