Keystone Government Loan

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. PHFA does not impose any additional guidelines except as noted below.

Eligibility Requirements

  • Your eligibility is determined by the PHFA participating lender using the guidelines of the respective federal agency (FHA, RD, or VA).
  • There are no income or purchase price limits specific to PHFA; however, the FHA and VA maximum loan limits still apply, as do the RD income limits.
  • You are not required to be a first-time homebuyer.
  • You will have fewer forms to sign at or before closing.

Borrowers meeting PHFA's income and purchase price limits may also choose to apply for the Keystone Home Loan program.

Downpayment and/or Closing Cost Assistance

In addition to the Keystone Government first mortgage, some applicants may qualify for downpayment and/or closing cost assistance through the Keystone Advantage Assistance Loan.

First-time homebuyers meeting PHFA's income and purchase price limits may qualify for a Mortgage Credit Certificate, which can be combined with the Keystone Advantage Assistance loan.

How to Apply

If you meet the conditions above, contact a PHFA participating lender to start your mortgage application. PHFA also offers homebuyers the opportunity to receive homebuyer counseling and education through one of its approved counseling agencies. We strongly encourage you to seek the assistance of a counselor before you sign a sales agreement, especially if you are a first-time buyer. Any borrower with a FICO credit score lower than 680 is required to complete a course prior to closing on their loan.

Borrowers should be aware that not all participating lenders offer FHA, RD, and/or VA loans. Also, those loan types may have additional eligibility requirements regarding the buyer and/or the property.

The program that is best for you will depend on your specific circumstances, such as your credit history and amount of cash savings, as well as your individual preferences. A PHFA approved homebuyer education provider or participating lender can help you decide.