Pennsylvania Home Buyer

Keystone Advantage Assistance Loan Program


The Keystone Advantage Assistance Loan Program is a second mortgage program designed to help eligible home buyers with the down payment and closing costs associated with the purchase of a home.

The program provides closing cost assistance up to $4,000. The closing cost loan is required to be paid back over a ten year term

Buyers purchasing a new home (never previously occupied) are eligible for up to $6,000. The minimum loan amount is $500. There is no prepayment penalty for paying off the Advantage loan early.

This example illustrates the monthly payment with the maximum loan of $4,000 using different interest rates.

Interest Rate4.25%4.375% 4.50%4.625%4.75%4.875%5.00%
Number of Payments (Ten Years)120120120120120120120
Amount of the 2nd Loan$4,000$4,000$4,000 $4,000$4,000$4,000$4,000
Monthly Payment$40.98 $41.21 $41.46 $41.70 $41.94 $42.18 $42.43

Keystone Advantage assistance loan can be used in conjunction with the HFA Preferred Risk Sharing™, HFA Preferred™, Keystone Home Loan or Keystone Government Loan programs and carries the same fixed interest rate as the first mortgage.


Buyers must meet the PHFA first mortgage guidelines along with the criteria below:

Nice Pennsylvania houseProspective home buyer’s liquid assets may not be greater than $50,000 after deducting the funds required to close on the loan. The cash requirement includes checking and savings accounts, certificates of deposit, stocks, bonds, and similar liquid accounts. Retirement accounts, pensions, 401(k)s, and IRAs will only be considered if they can be withdrawn without a penalty due to borrower meeting age requirement and/or being retired.

The program may not be combined with any other PHFA assistance program, with the exception of the Access Modification Loan Program.

How much does it cost to purchase a home in Pennsylvania? 

Use the closing cost calculator to estimate your down payment, closing costs and monthly loan payment 

Which home loan is right for you?
Fha logo

FHA mortgages have become very popular because the down payment is a mere 3.5% and the seller is allowed to pay the buyer's closing costs up to 6% of the sales price of the home. Read more

USDA Logo

A down payment is not required with USDA mortgages. And, the seller of the home is permitted by the USDA to pay as much as 6% of the sales price toward the buyer's closing costs.
Read more


VA logo

The Veteran's Administration does not require a down payments for VA home loans and the home seller is permitted to pay ALL closing costs.  Read more

Fannie and Freddie Mac logos

Fannie Mae and Freddie Mac mortgages are a great way to finance a home if you have a nice down payment or need a large loan (jumbo mortgage). Fannie Mae and Freddie Mac mortgages these are known as "conventional" or conforming mortgages
Read more








How much does it cost to buy a house in Pennsylvania?

Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.Closing cost calculator


First time home buyer classes listed by county



Learn about Pennsylvania's home buying programs. Read more

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