PHFA - Keystone Home Loan PLUS

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The Pennsylvania Housing Finance Agency (PHFA) offers mortgage loans with low interest rates & closing costs through two programs:

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.
• Conventional (i.e. Fannie Mae, Freddie Mac), FHA, VA, or RHS mortgages
• Discount on title insurance policy for most loans.
• PHFA offers a longer in rate lock for no extra fee.
  
  You may be eligible for a Keystone Home Loan if you meet the following four conditions:

1. All adults who intend to live in the home within 12 months from closing must be first-time homebuyers, regardless of the location of the home. This is defined as someone who has not owned (had Title to) their principal residence during the previous three years. Additionally, all adult occupants may not have ownership interest in any other real estate, except for a business property if the business is that persons primary source of income.

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 PLUS income limit. 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. These limits are lower than the Keystone Home Loan income limits.

3. The purchase price of your prospective home does not exceed the Keystone Home Loan PLUS purchase price limit. This includes all costs for a complete home. The appraised value of land owned outright for more than two years does not need to be included. These limits are lower than the Keystone Home Loan purchase price limits.

4. Household liquid assets may not be greater than $5,000 after deducting the funds needed to close on the loan. This includes cash and funds in checking and savings accounts, stocks, bonds, certificates of deposit, and similar liquid accounts. Funds from retirement accounts such as 401(k)s, IRAs, and pension funds will only be considered if they can be withdrawn without a penalty due to borrower meeting age requirement and/or being retired.