Keystone Government Loan Program
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.
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.
How does K-Gov differ from the Keystone Home Loan Program?
- Your eligibility is determined by the PHFA participating lender
using the guidelines of the respective federal agency (FHA, RD,
- 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.
If your middle or low credit score is below 680, you will need to complete
a homebuyer education class prior to closing that is provided by one
of PHFA's approved counseling agencies. Your property must also meet
PHFA's property guidelines.
Borrowers meeting PHFA's income and purchase price limits may also choose to apply for the Keystone Home Loan program.
Keystone Advantage Assistance Loan
In addition to the PHFA first mortgage, some applicants may qualify for downpayment and/or closing cost assistance through the Keystone Advantage Assistance Loan.
Mortgage Credit Certificate
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 do you apply for the Keystone Government Loan Program?
Simply call 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 homebuyer.
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.