Connect With Us:

Loan Programs:

Conventional Loan

FHA Loan


VA Loan

PA Housing Finance Agency (first time loans)


How does PHFA work? 

HFA PreferredTM (Lo MI)

Keystone Home Loan

Keystone Government Loan

PHFA Keystone Flex

Keystone Flex with K-FIT

PHFA Assistance Programs

First Front Door

Keystone Advantage Assistance Loan Program

Keystone Forgivable in Ten Years Loan Program (K-FIT)

Return to menu

Pennsylvania Housing Finance Agency (PHFA)

PHFA graphicSeveral mortgage programs are available for Pennsylvania first-time home buyers (and non-first-time home buyers) who purchase a home in "targeted" counties. 

The Pennsylvania Housing Finance Agency (PHFA )offers homebuyers and homeowners competitive interest rates, fewer fees, and 30-year, fixed-rate terms. This program can be used with conventional, FHA, VA, or RD loan types, offering possible down payment and closing cost assistance. PHFA services your mortgage for the life of the loan.

The Pennsylvania Housing Finance Agency (PHFA) offers affordable housing services to the citizens of Pennsylvania. Many financing options for first-time home buyers in Pennsylvania are available (and non-first-time home buyers) who purchase a home in "targeted" counties. The following are some of the most popular loan programs available through PHFA:

HFA Preferred™(Lo MI)

A 3% down payment is required on the HFA Preferred™ (Lo MI) loan. The HFA Preferred™ loan is a “conventional” mortgage, and this loan is subject to PMI with less than a 20% down payment, and the PMI is less than a non-PHFA mortgage.

Keystone Home Loan Program

Applicants must be first-time home buyers unless they acquire a house in a "targeted" county and do not own another residential property at closing. This program is designed for first-time home buyers with a 20% down payment.

Keystone's Home Loan program includes income and property value limitations.

A first-time home buyer has not previously owned or held title to a principal residence for at least 36 months. There are a few exceptions to this rule.

Keystone Government Loan Program

Under the Keystone Government Loan Program, USDA, FHA, and VA loans are available for first mortgage financing. The Keystone Government Loan Program has income or purchase price restrictions; you do not need to be a first-time home buyer.

Keystone Flex with K-FIT

With the K-Fit programs, you can purchase a home and pick up a 10-year forgivable loan, or purchase a home and roll in some rehab money, and last but not least, there is a refinance option. Here is a list of F-FIT programs:

  1. Keystone Flex (K-Flex) with K-FIT (Purchase only)
  2. Keystone Flex (K-Flex) Purchase & Improvement (up to $30,000) with K-FIT (Purchase only)
  3. Keystone Flex (K-Flex) (Refinance only, available for all loan types except RD)

Keystone Forgivable in Ten Years Loan Program (K-fit)

Now, here's a deal. PHFA will give you up to the lesser of 5% of the sales price or appraised value toward your down payment and or closing costs. 

But wait, that's not all. The loan is forgiven over ten years, providing you remain home. The loan balance will be paid if you sell or refinance the house within the ten-year payback period.

Keystone Advantage Assistance Loan

Buyers with a middle credit score of at least 660 qualified for a PHFA first mortgage under the Keystone Loan, Keystone Government Loan programs, and HFA Preferred mortgage program are eligible for the Advantage assistance loan. 

Qualified homebuyers may borrow a part of the money necessary to satisfy their down payment requirement (other than their minimum required contribution) and closing fees connected with purchasing their house via Advantage.


In conclusion, the Pennsylvania Housing Finance Agency's first-time home buyer program is an excellent way for those looking to purchase their first home to get the assistance and financing they need.

The program offers a variety of benefits and services that can help make the process of buying a home more accessible and affordable. If you are considering purchasing your first home, check out the Pennsylvania Housing Finance Agency's first-time home buyer program.

PHFA Sellers Guide

Recommended Reading
PHFA: How does it work?
PHFA: Keystone Home Loan Program
PHFA: HFA Preferred™ program
PHFA: Keystone Government Loan Program

If you found this information useful, please tell a friend.