Huntingdon County First-Time Homebuyer: K-FIT No-Cap Forgiveness Program

K-FIT: Unlimited Forgiveness Based on Purchase Price

Most down payment assistance programs cap assistance at fixed dollars: $8,000, $10,000, or $15,000 maximum. K-FIT takes a different approach. Instead of a dollar cap, K-FIT provides a percentage of your purchase price with no upper limit. This makes K-FIT uniquely valuable for Huntingdon County buyers purchasing properties at any price point.

If you buy a $100,000 home, K-FIT provides $5,000. If you buy a $200,000 home, K-FIT provides $10,000. If you buy a $400,000 home, K-FIT provides $20,000. The assistance scales automatically with your purchase price, ensuring higher-priced properties receive proportionally higher assistance.

K-FIT Program Details

K-FIT provides up to 5 percent of your home's purchase price as a zero-interest second mortgage. The loan is forgiven 10 percent annually over ten years, meaning one-tenth of your debt disappears each year simply by staying in your home and making on-time mortgage payments.

How K-FIT Forgiveness Works

You borrow up to 5 percent of your purchase price from K-FIT with zero interest. Starting on the first anniversary of closing, 10 percent of your loan balance is forgiven. After ten years of on-time payments, your entire K-FIT loan is gone with no repayment obligation.

This ten-year structure rewards long-term ownership. If you sell within ten years, you repay the remaining balance from sale proceeds. If you stay longer than ten years, you keep all forgiven portions as permanent assistance.

K-FIT Calculation Examples

For a $150,000 Huntingdon County home, 5 percent equals $7,500 in K-FIT assistance. For a $200,000 home, K-FIT provides $10,000. For a $300,000 home, K-FIT provides $15,000. For a $400,000 home, K-FIT provides $20,000. There is no published maximum, making K-FIT accessible regardless of purchase price.

K-FIT Eligibility Requirements

You must be a first-time homebuyer (or have not owned a home in the past three years) with a credit score of 660 or higher. Your household income cannot exceed PHFA limits, though these limits are relatively generous. You must have liquid assets not exceeding $50,000 after closing.

The $50,000 liquid asset limit is designed to ensure K-FIT assists buyers with limited savings, not wealthy buyers. If your savings exceed this after closing, you may not qualify. This ensures K-FIT targets families most in need of assistance.

Property Requirements

The property must be a single-family home, townhome, duplex, or small multi-unit property (2 to 4 units) that will serve as your primary residence. The home must be built after 1978 to meet federal lead-paint compliance standards. Investment properties do not qualify.

Why K-FIT Stands Out for Huntingdon County

K-FIT's no-cap structure makes it uniquely valuable for Huntingdon County buyers. If you are purchasing a property above typical first-time homebuyer price points, K-FIT scales up automatically. This flexibility appeals to buyers who need substantial assistance proportional to their purchase price.

The zero-interest structure also creates real financial value. Unlike NeighborWorks LIFT (2% above first mortgage rate), K-FIT charges zero percent. Over ten years, this saves thousands in interest charges compared to traditional lending or other assistance programs.

K-FIT vs. Other Assistance Programs

Program	Maximum	Interest	Forgiveness	Term
K-FIT	5% of purchase price (no cap)	0%	10% annually	10 years
HOMEstead	$10,000	0%	20% annually	5 years
Keystone Advantage	$8,000	0%	None (repayment required)	10 years
NeighborWorks LIFT	$5,000-$25,000	2% above first mortgage	None (repayment required)	Term varies

Layering K-FIT with Primary Financing

K-FIT works with any PHFA primary mortgage or traditional lender. Most Huntingdon County buyers pair K-FIT with Keystone Home Loan (3% down) to create a powerful two-layer assistance structure.

For example, if you buy a $200,000 home with 3% down ($6,000) plus K-FIT (5% or $10,000), your total down payment assistance reaches $16,000. Combined with your own savings, you can purchase the home with minimal out-of-pocket costs while keeping monthly payments affordable.

K-FIT Application Process

Complete homebuyer counseling (recommended). Apply for K-FIT with a participating PHFA lender (typically 1-2 days). Get preapproval from your primary mortgage lender (3-5 days). Find your home and sign purchase agreement (2-6 weeks). Submit K-FIT application to PHFA after purchase agreement is signed (1 week). Primary mortgage processing and underwriting occurs (2-4 weeks). Final closing and funding happens (1 day).

Frequently Asked Questions

What if the property I want costs more than $400,000?

K-FIT has no published maximum. At 5 percent of purchase price, you would receive $20,000+ on a $400,000+ property. There is no cap on K-FIT assistance, making it valuable regardless of purchase price.

What happens to K-FIT if I sell within ten years?

You repay the remaining balance from your sale proceeds. If you sold after seven years of a $10,000 K-FIT loan, you would repay $3,000 (the remaining 30% after seven years of 10% annual forgiveness). Your home sale typically covers this easily, leaving you profit after all debts are cleared.

Can I combine K-FIT with other PHFA assistance programs?

No. K-FIT cannot be combined with other PHFA assistance programs except the Access Modification Loan (available only to buyers with disabilities). You must choose K-FIT or another assistance program, not both.

Is my credit score too low for K-FIT?

K-FIT requires 660 minimum credit score. If your score is below 660, work with a PHFA counselor on credit repair. Many buyers improve their score 30-50 points within six months of focused effort, making them K-FIT-eligible.

Do I have to stay in my home ten years to keep K-FIT benefits?

No. You benefit from K-FIT even if you sell early. Forgiveness begins on the first anniversary and continues each year you own the home. If you sell after five years, you keep the 50% that was forgiven and repay only the remaining 50%.

Start Your Huntingdon County Homeownership Journey

K-FIT provides Huntingdon County first-time homebuyers unlimited assistance scaled to your purchase price. With zero interest, automatic forgiveness over ten years, and no dollar cap, K-FIT removes barriers to homeownership regardless of property price.

Contact a PHFA-approved lender or counselor to explore K-FIT and begin your path to owning your first Huntingdon County home.