The Pennsylvania Housing Finance Agency (PHFA or the Agency) offers home purchase loans with competitive interest rates and lower fees that carry a fixed interest rate for 30 years. As of January 4, 2016, PHFA has assisted nearly 162,300 families and individuals achieve the American dream of homeownership by providing funding totaling more than $12.4 billion.  The Keystone Home Loan and HOMEstead Program are financed through the sale of mortgage revenue bonds, not tax allocations. Certain federal laws regulate the kinds of mortgages that can be offered and the borrowers who are eligible to receive them, and set other requirements such as maximum purchase price and income limits.

Eligible buyers may also qualify for a downpayment and/or closing cost assistance loan. 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. With PHFA's Purchase Improvement loan, you can make repairs to the home you are purchasing, as long as they are supported by the homes appraised value.

The loan application, processing, and closing is handled by a network of participating lenders that have been approved and trained by the Agency. PHFA then buys the loan from the lender immediately following closing and services it for the life of the loan. Therefore, you would make all of your mortgage payments directly to PHFA until the loan is paid off.

Credit counseling and homebuyer education is also available through PHFA's Comprehensive Housing Counseling Initiative. PHFA strongly encourages you to become informed consumers by meeting with a housing counselor or taking a course prior to signing a sales agreement. Buyers with a FICO credit score lower than 680 are required to attend a course prior to closing on their loan.