First Time Home Buyer and Other Home Loan Programs - Pennsylvania


Looking to buy a home in Pennsylvania? The Pennsylvania Housing Finance Agency (PHFA) offers home loans with low interest rates and fees.

The Pennsylvania Housing Finance Agency

The Pennsylvania Housing Finance Agency (PHFA) offers 30-year home loans with fixed low interest rates and fees. The PHFA has helped more than 100,000 families and individuals in Pennsylvania achieve the dream of homeownership by providing funding totaling more than $5.5 billion.

Downpayment and closing cost assistance loans are available to eligible homebuyers. Buying a fixer-upper? With PHFA's Purchase Improvement loan, you can make repairs to the home you are purchasing. Additionally, Access Home Modification Program loans are available to buyers who need to modify the home they are purchasing to suit the living needs of a household member with a disability.

Benefits of the Pennsylvania Housing Finance Agency

Here are a few good reasons to work with the PHFA:

  • Low interest rates.
  • Fewer fees. Since PHFA restricts or limits certain fees, you can have peace of mind knowing that you didn’t pay more than you had to.
  • Possible downpayment and closing cost assistance.
  • 30-year, fixed rate terms.
  • Can use with conventional, FHA, VA, or RHS loan types.
  • The rate is the same regardless of which lender you use.
  • 25 percent discount on Title Policy for most loans, upon request. This can be a savings of a few hundred dollars, depending on your loan amount.
  • Unlike most lenders who sell their loans to other parties, PHFA retains the servicing for the life of the loan.
  • If you’re building a home, PHFA offers a longer rate lock for no extra fee.
  • Loans are assumable to qualified borrowers with PHFA approval. This may make it easier for you to sell your home if and when that time ever comes.
  • PHFA cares about you, the homebuyer, and has your best interests in mind.

Keystone Home Loan

The Keystone Home Loan has the fewest eligibility requirements and the highest income and purchase price limits.

You don't even have to be a first-time homebuyer if you are buying a home in a Targeted area.

First-time buyers may apply to receive up to $1,500 in assistance in the form of a zero percent interest loan that does not require repayment until the buyer pays off or refinances the Keystone Home Loan first mortgage, or sells the home.

Read more about Keystone Home Loan

Keystone Home Loan PLUS

The Keystone Home Loan PLUS has the lowest rate available, but the income and purchase price limits are also lower, and there are some additional eligibility guidelines.

Buyers eligible for the PLUS program may also receive up to $3,000 in assistance in the form of a zero percent interest loan that does not require repayment until the buyer pays off or refinances the PLUS first mortgage, or sells the home.

Read more about the Keystone Home Loan PLUS

Keystone Government Loan Program

The Keystone Government Loan Program (K-Gov) provides first mortgage financing on loans insured by the Federal Housing Administration (FHA) or guaranteed by Rural Development (RD) or the Department of Veterans' Affairs (VA).

Loans are underwritten using the guidelines of the respective federal agency providing the insurance/guaranty.

Read more about the Keystone Government Loan Program

Purchase Improvement Loan

PHFA's Purchase Improvement loan allows buyers who qualify for a Keystone Home Loan or a Keystone Home Loan PLUS to purchase and improve/repair a home within one transaction.

Eligible buyers may include between $1,000 and $15,000 for repairs and/or improvements with a conventional PHFA first mortgage, as long as the As Completed appraised value supports the cost of the repairs. This program allows the buyer to make needed repairs right away, without having to take out another loan at a higher rate and with a shorter repayment period.

Read more about the Purchase Improvement Loan

Keystone Assistance Loan

The Keystone Assistance Loan Program provides a zero interest second loan to help with costs associated with a home purchase. This loan has no monthly payment and only becomes due and payable upon sale or transfer of your home.

Read more about the Keystone Assistance Loan

Downpayment and Closing Cost Assistance Loan (HOMEstead Program)

Homebuyers eligible for the HOMEstead program may qualify for up to $10,000 in downpayment and closing cost assistance in the form of a no-interest, second mortgage loan.

Borrowers must have sufficient funds to make a downpayment of at least three percent of the purchase price, or $1,000 for borrowers who have a credit score of at least 660. HOMEstead funds provide the remainder of the downpayment and the closing costs. In certain cases, based upon family need, the funds may provide additional down money to make the property affordable to the buyer.

Read more about the Downpayment and Closing Cost Assistance Loan

Programs for People with Disabilities

The PHFA offers home loan programs to buyers with disabilities or those with a disabled household member under the Keystone Home Loan, the Keystone Home Loan PLUS, and the Fannie Mae Community HomeChoice™ Loan. Buyers with a disability or a disabled household member who are eligible for one of these three home loan programs may also be eligible to receive funds to make access modifications to the home they buy. Closing cost and downpayment assistance loans are also available.

Read more about Programs for People with Disabilities

Tax Credit Advance Loan

Congress has enacted legislation providing a federal tax credit of up to $8,000 for first-time home buyers purchasing (and occupying in the case of custom construction) their principle residence between January 1 and November 30, 2009. This credit is available to single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000.

Read more about the Tax Credit Advance Loan (PDF)

Other Local Pennsylvania Home Loan Resources

Pennsylvania also has several first time home buyer and other home loan programs available through city, county, and other state agencies. Find a local Pennsylvania home buyer program that is right for you on the official Pennsylvania HUD website.

Related Articles

Source: The Pennsylvania Housing Finance Agency
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