Get financial support to buy a house in PA
PHFA offers low-cost mortgage options to potential homeowners
Apply nowThe Pennsylvania Housing Finance Agency (PHFA) offers various programs to Pennsylvania residents looking to purchase a home.
The HFA Preferred Loan is a 30 year fixed rate term loan that provides mortgage insurance when the borrower puts down less than 20% towards the purchase of the home. Your lender will help you determine what the insurance premium will be. With the HFA Preferred Loan, you also get a $500 grant to help with downpayment and closing costs that does not have to be repaid. To be eligible for the HFA Preferred Loan, you must make less than the income limit for your county.
The Keystone Home Loan Program is another low-cost mortgage option for potential homeowners. You must be a first time homebuyer unless you are purchasing a home in a target county or are a veteran. The income threshold is higher than that for the HFA Preferred Loan and there are home purchase price limits for a house to qualify. Check the target counties, income limits and purchase price limits per county here.
In addition to mortgage loans, the PHFA offers additional loans to help specifically with downpayment and closing costs. The HOMEstead Downpayment and Closing Cost Assistance Loan Program provides up to $10,000 in downpayment and closing cost assistance in the form of a no-interest, second mortgage loan forgiven at 20 percent per year over five years. To be eligible for the HOMEstead program, borrowers must meet the income and home purchase price limits that vary by county. The Keystone Advantage Assistance Loan Program is another second mortgage loan that offers up to 4% of the total home price or $6,000 in the form of a 0% interest loan to be repaid monthly over 10 years. To be eligible for the Keystone Advantage Assistance Loan Program, the borrower’s liquid assets may not be greater than $50,000 after deducting the funds needed to close on the loan.
To apply for these loans, get in contact with a participating lender. Find a list of participating lenders here. PHFA also offers free homebuyer counseling to help you figure out the best loan for you. Get in touch with a free counselor here.