Key takeaways
- The Pennsylvania Housing Finance Agency (PHFA) offers 30-year fixed Keystone and HFA Preferred loans through participating lenders.
- K-FIT gives 5% of the price as a loan forgiven 10% a year over 10 years; Keystone Advantage lends the lesser of 4% or $6,000 at 0%, repaid over 10 years.
- K-DATE provides 5% (8% on loans of $150,000 or less) with no payments until you sell, refinance or pay off the home.
- PHFA assistance requires a 660 credit score and no more than $50,000 in liquid assets after closing.
Pennsylvania’s homebuyer help runs through PHFA, which pairs its own 30-year fixed mortgages with several kinds of down payment and closing cost assistance. Each one works with specific first mortgages, so the right choice depends on the loan you qualify for and how long you plan to stay.
Example: on a $250,000 home, K-FIT provides $12,500 (5%), forgiven over 10 years. Keystone Advantage on the same home is capped at $6,000, repaid at 0% over 10 years, or $50 a month.
PHFA programs at a glance
Rates and terms checked: Nov. 11, 2026. They change often, so confirm with the provider before you apply. How we review lenders
| Program | Amount | Repayment | Works with |
|---|---|---|---|
| K-FIT (Keystone Forgivable in Ten Years) | 5% of the lesser of price or appraised value, no dollar cap | Forgiven 10% a year over 10 years | Keystone Home Loan only |
| Keystone Advantage Assistance Loan | Lesser of 4% of price/value or $6,000 ($8,000 for some employer-assisted buyers) | 0%, monthly payments over 10 years | HFA Preferred, Keystone Government or Keystone Home |
| K-DATE (Keystone Due At Time of Expiration) | 8% on loans of $150,000 or less (subject to availability); 5% on larger loans | 0%, no payments; due when you sell, refinance or pay off the first mortgage | Keystone Home and certain Keystone Flex loans |
| PHFA Grant | $500 | None | HFA Preferred (Lo MI); can add to Keystone Advantage |
| Access Downpayment and Closing Cost Assistance | Up to $15,000, no interest | See program terms | Buyers with a disability or a household member with a disability, income up to 80% of statewide median |
Except for the $500 grant, PHFA’s down payment programs generally can’t be combined with each other (the Access Home Modification Program is the exception).
PHFA first mortgages
- Keystone Home Loan: income and purchase price limits, plus a first-time buyer requirement in some counties. Needed for K-FIT.
- Keystone Government Loan: FHA, VA or USDA with no income, price or first-time buyer limits.
- HFA Preferred (Lo MI): conventional loan with reduced mortgage insurance; income limits but no first-time buyer or price limits.
All are 30-year fixed-rate loans offered through PHFA’s participating lenders.
Which assistance fits you?
- Staying 10 years or more? K-FIT costs nothing if you keep the home for the full decade, and 5% of the price usually covers more than the minimum down payment.
- Want the smallest balance hanging over the home? Keystone Advantage is small and paid off in 10 years, but its monthly payment counts in your debt-to-income ratio.
- Buying a lower-priced home? K-DATE’s 8% on loans of $150,000 or less is one of the largest percentages available, with no payments until you sell or refinance.
Ask about the rate: assistance can come with a slightly higher first-mortgage rate. Ask your lender to quote the same loan with and without assistance, and compare the payments in the mortgage calculator.
Who qualifies
- Credit score: 660 minimum for Keystone Advantage, K-FIT and K-DATE.
- Liquid assets: no more than $50,000 after closing costs for these programs.
- Income and price limits: apply to Keystone Home and HFA Preferred loans and vary by county.
- Education: pre-closing homebuyer education is required if your credit score is below 680.
- Owner-occupied home in Pennsylvania.
How to apply
- Check your budget with the home affordability calculator.
- Find a PHFA participating lender and ask which first mortgage and assistance pair fits you.
- Complete homebuyer education if required (it’s a good idea even if not).
- Get preapproved and compare offers.
- Estimate your cash to close with the closing cost calculator; Pennsylvania’s realty transfer tax is usually split between buyer and seller.
Compare standard FHA, VA, USDA and 3%-down conventional loans in our first-time homebuyer programs guide.
First-time home buyer programs in other states
Frequently asked questions
How much down payment assistance can I get in Pennsylvania?
K-FIT gives 5% of the price, K-DATE 5% (8% on loans of $150,000 or less) and Keystone Advantage the lesser of 4% or $6,000. Buyers with a disability in the household may qualify for up to $15,000 through Access.
Is PHFA K-FIT forgiven?
Yes. K-FIT is forgiven 10% a year, so it’s fully forgiven after 10 years in the home.
What credit score do I need for PHFA?
660 for PHFA’s down payment assistance programs. With a score below 680, you’ll also need to complete homebuyer education before closing.
Do I have to be a first-time buyer in Pennsylvania?
Not for every program. The Keystone Government Loan and HFA Preferred have no first-time buyer requirement; the Keystone Home Loan requires it in some counties.
Sources: Pennsylvania Housing Finance Agency (assistance loans for home purchase, home purchase loan programs). Program terms checked Nov. 11, 2026; rates, limits and availability change, so confirm with a PHFA participating lender. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.