Where Do I Start?

The Pennsylvania Housing Finance Agency offers home loans with low interest rates and fees through two programs: Keystone Home Loan and Keystone Home Loan PLUS. Both programs have maximum income and purchase price limits that vary by the county in which you are buying a home. You may also need to be a first-time buyer and meet other eligibility guidelines specific to each program. All of PHFA's loans have a fixed interest rate for 30 years, and there is no early payoff penalty.

First, determine if you're eligible for a PHFA 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. These areas are indicated on the list of income and purchase price limits. 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.

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.

If the buyer is employed by a PHFA Participating Employer, additional advantages are available to eligible borrowers through the Employer Assisted Housing Program.

Next, contact a participating lender or counseling agency.

If, after reading over the information at the links above, you think you might be eligible for a PHFA home loan, your next step would be to contact one of our participating lenders. PHFA does not handle the mortgage application process. Instead, we have a network of lenders and brokers throughout the state who will process and close your loan. We then buy the loan from them immediately following the loan closing (also referred to as Settlement). So, you would be making your mortgage payment directly to PHFA for the life of your loan. The lender will be able to determine if you are ready for a home loan, and if so, how much of a home you can afford.

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. PHFA requires borrowers with a FICO credit score lower than 660 to complete a course prior to closing on their loan.

PHFA also has other homeownership programs.

Feel free to call the PHFA Homebuyers’ Hotline at 1.800.822.1174 if you have questions.