PHFA Keystone Home Loan Income and Purchase Price Limits


The Keystone Home Loan Program offers below market interest rates to first time home buyers and non-first time home buyers who purchase homes in “targeted” Pennsylvania counties.

Young family with childProspective home buyers must meet the income and purchase price limits with this program.

Eligible properties include existing owner occupied one to two family dwellings, including condominium units. If the property is a two unit residence, the borrower must live in one of the units. Three and 4 unit buildings are ineligible with the Keystone Home Loan Program.

The Pennsylvania Housing Finance Agency does not lend money directly to prospective home buyers, but works through approved mortgage lenders to provide first time buyer financing. You and the approved lender will choose the appropriate mortgage (i.e. FHA, VA (Veteran loan), USDA or conventional financing). After lender and PHFA approval, your loan is handed off to the Pennsylvania Housing Finance Agency. You will make your monthly mortgage payment to PHFA.

Benefits of a PHFA home loan

Low interest rates - your choice between a zero point or a one point option (the discount point reduces the interest rate).

  • Fewer fees. PHFA limits certain fees (closing costs)
  • Down payment and closing cost assistance is available for eligible borrowers.
  • 30 year fixed rate terms.

Eligible Home Loan Financing include:

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, and select 'Geocoding/Mapping System'.
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 Income Limits.pdf. 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 Purchase Limits.pdf. 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. These would commonly include such things as credit reports, appraisals, title fees, etc.

6. You have sufficient funds for a down payment on your prospective home. Borrowers who have a down payment 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 down payment differs according to the loan type as listed below.