The Pennsylvania Housing Finance Agency (PHFA) offers Pennsylvanians services for affordable housing. For Pennsylvania first-time homebuyers (and non-first-time homebuyers) who purchase a property in “designated” counties, a number of financing programs are available. The Pennsylvania Housing Finance Agency (PHFA) provides 30-year, fixed-rate terms, competitive interest rates, and fewer fees to purchasers and homeowners. This program gives potential downpayment and closing cost help and can be used with conventional, FHA, VA, or RD loan types. Your mortgage is maintained by PHFA for the duration of the loan. The Pennsylvania Housing Finance Agency (PHFA) provides services for affordable housing to the state’s residents. When buying a property in “targeted” counties in Pennsylvania, first-time buyers (and repeat buyers) have access to a variety of financing choices. PHFA offers home purchase and refinances loans to qualified borrowers throughout the Commonwealth. What you choose will depend on your individual situation. here are some of the most popular loan programs available through PHFA:
HFA Preferred™(Lo MI)
A 3% down payment is required on an HFA PreferredTM (Low MI) loan. The HFA PreferredTM loan is a “conventional” mortgage, and this loan is subject to PMI with less than a 20% down payment, and the PMI is lower 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, and 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: Keystone Flex (K-Flex) with K-FIT (Purchase only) Keystone Flex (K-Flex) Purchase & Improvement (up to $30,000) with K-FIT (Purchase only) Keystone Flex (K-Flex) (Refinance only, available for all loan types except RD)
Keystone Forgivable in Ten Years Loan Program (K-fit)
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 in the 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 ADDITION, PHFA offers homebuyers the opportunity to receive homebuyer counseling and education through its approved counseling agencies, as well as an online program. Housing Counselors provide guidance and advice to help families and individuals improve their housing conditions and meet the responsibility of homeownership.
A PHFA-approved homebuyer education provider or participating lender can help you decide.
