Keystone Home Loan Programs

Start living your dream today by finding out if you're eligible for a low-rate, 30-year fixed PHFA home loan.

Keystone Home Loan Program

Keystone Home Loan Program Income and Purchase Price Limits

You may be eligible for a Keystone Home Loan if you meet the following six conditions:

1. You are not a first-time homebuyer, but you plan to buy a home in a Targeted county or area or you are a discharged veteran of the United States Armed Forces. Target counties are indicated by a "T" in the listing of Purchase Price and Income Limits. Please note that some Non-Target counties have targeted neighborhoods within them. Those areas are listed by county and census tract starting on page three of the purchase price and the income limits above. To determine the census tract of a specific property, visit www.ffiec.gov, and select 'Geocoding/Mapping System'.
   OR
   You and all other adults who intend to live in the home within 12 months from closing are first-time homebuyers. This is defined as someone who has not owned (had Title to) their principal residence during the previous three years.
2. The gross annual household income for all adults that intend to occupy the home within one year from loan closing does not exceed the Keystone Home Loan Program income limit. All sources of income must be included, except for income received by persons under age 18 and income received by dependants enrolled in a full-time undergraduate program.
3. The purchase price of your prospective home does not exceed the Keystone Home Loan Program purchase price limit. This includes all costs for a complete home. It is also known as the total acquisition cost. The appraised value of land owned outright for more than two years does not need to be included.
4. You have an acceptable credit history and the ability to make monthly payments on the home you expect to buy. Generally, you should plan to use no more than 30 percent of your income for your monthly mortgage payment. A participating lender or PHFA network counseling agency can help you determine how much of a home you can afford, as well as any credit issues you may need to work on.
5. You have sufficient funds to pay standard mortgage application and closing fees. Check with a PHFA participating lender to determine the specific costs. These would commonly include such things as credit reports, appraisals, title fees, etc. Buyers who qualify for a PHFA home loan may be able to receive a 25 percent discount on their title insurance, upon request. This could be a savings of hundreds of dollars, depending on your loan amount. So, be sure to ask the lender to request the discount, if applicable. The discount does not apply to loan amounts greater than $200,000 or to the Approved Attorney Procedure.
6. You have sufficient funds for a downpayment on your prospective home. Borrowers who have a downpayment of less than 20 percent of the home’s purchase price or appraised value are required to obtain mortgage insurance to protect the lender and PHFA in the event that the mortgage becomes delinquent (you fall behind on your payments). The amount of the downpayment differs according to the loan type as listed below.

Conventional loans: This is the term for a loan that is not insured or guaranteed by the government. In this case, borrowers with a middle FICO credit score of at least 660 can put as little as three percent down (this would include the co-borrowers score, too). Of that amount, the lesser of $1,000 or two percent of the sales price must be verified in your bank account for at least three months. The remainder can come from a gift from a member of your immediate family (parent, sibling, child, grandparent, aunt, or uncle) or a nonprofit organization.

For buyers with credit scores below 660, a downpayment of five percent is required for conventional loans. At least three percent must be verified in your bank account for at least three months. The additional two percent can be a gift from a source mentioned above.

FHA loans: These loans are insured by the Federal Housing Administration (FHA) and require a borrower to have a 3.5 percent minimum investment.

VA and RHS loan: Loans guaranteed by either the Veterans Administration (VA) or Rural Housing Services (RHS) require no downpayment in most cases. RHS loans are not available in Philadelphia and Delaware counties or other major cities.

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

Keystone Advantage Assistance Loan Program

The Keystone Advantage Assistance Loan Program provides a second mortgage loan to help with the costs associated with the purchase of a home. Qualified borrowers can receive up to two percent (2 %) of the purchase price up to a maximum of $4,000 which is to be repaid monthly, amortized over a ten year term. Keystone Advantage can be used to cover the downpayment or closing costs in conjunction with the Keystone Home Loan or Keystone Government Loan programs and carries the same fixed interest rate as the first mortgage.

Buyers must meet the requirements of a PHFA first mortgage along with the criteria below:

1. The assistance is based on need (to be determined by a participating lender.)
2. Assistance can only be used for the minimum required downpayment and/or closing costs.
3. The minimum loan amount is $500.
4. Household liquid assets may not be greater than $5,000 after deducting the funds needed to close on the loan. This includes cash and funds in checking and savings accounts, stocks, bonds, certificates of deposit and similar liquid accounts. Funds from retirement accounts such as 401(k)s, IRAs and pension funds will only be considered if they can be withdrawn without a penalty due to borrower meeting age requirement and/or being retired.
5. The Keystone Advantage Assistance program may not be combined with any other PHFA assistance program, with the exception of the Access Modification Loan Program.
6. Keystone Advantage Assistance loans may be used on Conventional, FHA, VA or RD loans. All applicable FHA, VA or RD loan underwriting requirements apply, including loan to value and downpayment requirements.

Start living your dream today.

If you meet the conditions above, 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 buyer. Any borrower with a FICO credit score lower than 660 is required to complete a course prior to closing on their loan.

Back to Loan Listing