Your Guide to Pennsylvania Mortgage Assistance Programs
Keystone Advantage Assistance Loan Program
The Keystone Advantage Assistance Loan Program provides a second mortgage loan to help cover down payment and/or closing costs.
Eligible borrowers can receive 4% of the home’s purchase price, market value, or $6,000, whichever is least, in down payment and closing cost assistance. The assistance loan will be amortized over a ten-year term at zero percent interest and will be repaid monthly.
The Keystone Advantage Assistance can be used in conjunction with the following PHFA loan programs:
- HFA Preferred
- Keystone Government Loan
- Keystone Home Loan
Keystone Advantage Assistance loans may be used on Conventional, FHA, VA, or RD loans. All applicable FHA, VA or RD loan underwriting requirements apply, including loan to value and down payment requirements.
Eligibility Requirements:
- Minimum credit score of 660
- Minimum loan amount of $500
- Borrower(s) liquid assets may not be greater than $50,000 after deducting the funds needed to close the loan
- Liquid assets include cash and funds in checking and savings accounts, stocks, bonds, certificates of deposit, and similar liquid accounts.
- Assistance can only be used for the minimum required down payment and/or closing costs
The Keystone Advantage Assistance program can not be combined with any other PHFA assistance program, excluding the Access Modification Loan Program.
Keystone Forgivable in Ten Years Loan Program (K-FIT)
The Keystone Forgivable in Ten Years Loan Program (K-FIT) provides a second mortgage loan to help cover down payment and/or closing costs.
Eligible borrowers may receive 5% of the purchase price or appraised value, whichever is less, with no maximum dollar limit for down payment and/or closing cost assistance.
The K-Fit loan is forgiven on an annual basis over 10 years at 10% a year, and can be used in conjunction with the Keystone Home Loan.
The K-FIT program may be used on Conventional, FHA, VA, or RD loans. All applicable FHA, VA or RD loan underwriting requirements apply, including loan to value and down payment requirements.
Eligibility Requirements:
- Minimum credit score of 660
- Minimum loan amount of $500
- Borrower(s) liquid assets may not be greater than $50,000 after deducting the funds needed to close the loan
- Liquid assets include cash and funds in checking and savings accounts, stocks, bonds, certificates of deposit, and similar liquid accounts.
- Assistance can only be used for the minimum required down payment and/or closing costs
The K-FIT Loan Program may not be combined with any other PHFA assistance program, except for the ACCESS Home Modification Loan Program.
PHFA $500 Grant
The PHFA Grant provides grant assistance of $500 to help with down payment and closing costs when obtaining an HFA Preferred™(Lo MI) loan.
The PHFA Grant does not require repayment and must be used towards the purchase of a home.
Eligible borrowers may combine the PHFA Grant with the Keystone Advantage Assistance loan program.