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  • PHFA will be closed Monday, May 27, 2024.

K-FLEX Home Purchase Loans

The Pennsylvania Housing Finance Agency (PHFA or the Agency) offers home purchase loans with competitive interest rates and lower fees. In addition to the PHFA first mortgage, some applicants may qualify for downpayment and/or closing cost through one of our many assistance programs.

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.

If you are not sure where to begin, we suggest visiting our "Start Here" page for Homebuyers.

Keystone Flex with K-FIT

The Keystone Flex with Keystone Forgivable In Ten Years Loan Program (K-FIT) provides first mortgage financing Conventional or the Federal Housing Administration (FHA) or guaranteed by Rural Development (RD) or Department of Veterans Affairs (VA). The first mortgage is paired with K-FIT which provides assistance toward downpayment and/or closing costs for eligible homebuyers in the form of a forgivable second mortgage. K-FIT provides eligible homebuyers with five percent (5%) of the lesser of the purchase price or appraised value with no maximum dollar limit. Funds for the second mortgage are forgiven on an annual basis, over ten years at a rate of ten percent (10%) per year.

Eligibility Requirements

You may be eligible for a Keystone Flex with K-FIT Loan if you meet the following conditions:

  • You meet the qualifying income requirement that cannot exceed the Keystone Flex Loan Program Income Limit.
  • The purchase price of the home you intend to purchase cannot exceed the Keystone Flex Loan Program Purchase Price Limit.
  • All borrowers must have a minimum FICO score of 660.
  • You are not required to be a first-time homebuyer.
  • You have sufficient funds for a downpayment on your prospective home. Borrowers must contribute the lesser of $1K or 1% of the loan amount for (Conventional and FHA only).
  • All borrowers must complete homebuyer education from an approved PHFA Counseling Agency.
  • You meet the eligibility requirements for the K-FIT assistance loan.

Keystone Flex-Purchase & Improvement with K-FIT

PHFA's Keystone Flex Purchase & Improvement with K-FIT loan allows buyers to purchase, improve/repair a home and down payment and closing cost assistance in one transaction. This loan provides buyers with a conventional PHFA first mortgage with funds up to $30,000 to make eligible repairs and improvements to the home. Home repairs can be made to single family homes, duplexes, manufactured housing and PUDs.

Eligible repairs and improvements must meet the Purchase & Improvement Program guidelines.

The first mortgage is paired with K-FIT, which provides assistance toward downpayment and/or closing costs for eligible homebuyers in the form of a forgivable second mortgage. K-FIT provides eligible homebuyers with five percent (5%) of the lesser of the purchase price or appraised value with no maximum dollar limit. Funds for the second mortgage are forgiven on an annual basis, over ten years at a rate of ten percent (10%) per year.

Eligibility Requirements

You may be eligible for a Keystone Flex Purchase & Improvement with K-FIT Loan if you meet the following conditions:

  • You meet the qualifying income requirement that cannot exceed the Keystone Flex Loan Program Income Limit.
  • The purchase price of the home you intend to purchase cannot exceed the Keystone Flex Loan Program Purchase Price Limit.
  • All borrowers must have a minimum FICO score of 660.
  • You are not required to be a first-time homebuyer.
  • You have sufficient funds for a downpayment on your prospective home. Borrowers must contribute the lesser of $1K or 1% of the loan amount for Conventional loan.
  • All borrowers must complete homebuyer education from an approved PHFA Counseling Agency.
  • You meet the eligibility requirements for the K-FIT assistance loan.
  • You are completing eligible repairs and/or improvements up to $30,000 to the subject property, meeting the program requirements of the Purchase & Improvement Program.