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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)

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Pennsylvania Housing Finance Agency (Phfa) Programs

PHFA graphicNestled within the heart of Pennsylvania lies a crucial entity silently shaping the state's affordable housing landscape—the Pennsylvania Housing Finance Agency (PHFA). While its name might not evoke immediate recognition, this agency's impact and reach extend far beyond its humble title. 

PHFA is pivotal in providing financing options, counseling services, and support for individuals and families seeking to fulfill their dream of homeownership or secure affordable rental accommodations. As we delve into the intricacies of PHFA's mission and operations, it becomes evident that this agency is a beacon of hope for many Pennsylvanians striving to find stability in an ever-evolving housing market.

HFA PreferredTM (Lo MI):

  • This program allows borrowers to secure a conventional mortgage with a down payment requirement as low as 3%.
  • Unlike many conventional loans, PHFA's HFA PreferredTM offers lower private mortgage insurance (PMI) rates for down payments below 20%, making homeownership more affordable.
  • Borrowers benefit from competitive interest rates and flexible terms, enhancing affordability and long-term financial planning.

Keystone Home Loan Program:

  • Designed primarily for first-time home buyers, this program offers the flexibility of a 20% down payment, ensuring accessibility for a wide range of borrowers.
  • Income and property value limitations are incorporated to align with borrowers' financial capacities while maintaining affordability.
  • PHFA's commitment to homeownership education further supports borrowers in making informed decisions and confidently navigating the home-buying process.

Keystone Government Loan Program:

  • This program focuses on expanding mortgage options and facilitates access to USDA, FHA, and VA loans for first mortgage financing.
  • While income or purchase price restrictions apply, eligibility is not confined to first-time home buyers, providing opportunities for a broader spectrum of borrowers.
  • Government-backed loans often come with favorable terms and lower down payment requirements, making homeownership more attainable for many individuals and families.

Keystone Flex with K-FIT:

  • Offering unparalleled flexibility, this program provides options such as a 10-year forgivable loan, allowing borrowers to tailor their financing to suit their unique needs and circumstances.
  • By incorporating rehabilitation funds into the home purchase process, Keystone Flex with K-FIT supports borrowers in transforming their dream homes into reality.
  • Under this program, refinancing options enable homeowners to take advantage of favorable market conditions and adjust their mortgage terms as needed.

Keystone Forgivable in the Ten-Year Loan Program (K-FIT):

  • This innovative program provides substantial assistance of up to 5% of the sales price or appraised value towards down payments and closing costs.
  • With the loan forgiven over ten years, borrowers benefit from reduced financial burdens and enhanced affordability.
  • However, borrowers need to understand the terms and conditions, particularly regarding the repayment obligations in the event of selling or refinancing the home within the specified timeframe.

Keystone Advantage Assistance Loan:

  • Targeted at borrowers with a middle credit score of at least 660, this program offers valuable assistance in meeting down payment and closing cost requirements.
  • Borrowers can leverage this loan to bridge the financial gap and achieve homeownership with greater ease and confidence.
  • By reducing upfront costs, the Keystone Advantage Assistance Loan enhances affordability and improves access to homeownership opportunities for eligible individuals and families.

PHFA Income Limits

The Pennsylvania Housing Finance Agency (PHFA) recently updated its income limits, affecting eligibility for PHFA loans. These new limits impact prospective homebuyers looking to benefit from PHFA programs, especially first-time buyers. Understanding the income thresholds is crucial when applying for financial assistance through PHFA.


In conclusion, PHFA's suite of loan programs caters to diverse borrower needs and preferences, offering a pathway to homeownership that is both accessible and sustainable. Whether it's minimizing upfront costs, providing flexible financing options, or supporting borrowers through educational resources, PHFA remains committed to fostering homeownership and strengthening communities across Pennsylvania.

PHFA Sellers Guide

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