Keystone Advantage Assistance Loan Program

The Pennsylvania Housing Finance Agency (PHFA) offers eligible homebuyers assistance in meeting the upfront costs of homeownership through different programs, one of which is the Keystone Advantage Assistance Loan Program.

With the Keystone program, qualified borrowers are provided with a second mortgage loan to help with down payment and closing costs on the property. Eligible applicants can receive up to 4 percent of the purchase price or market value, or $6,000 in assistance (whichever is less). The assistance loan will be amortized over a ten year term at zero percent interest, and needs to be repaid monthly. The Keystone assistance program can be combined with other PHFA first mortgage home purchase loans, which include the HFA Preferred (Lo MI), the HFA Preferred Risk Sharing (No MI), the Keystone Government Loan, or the Keystone Home loan (FHA, VA, or RD loan types only).

Eligibility Requirements

• All applicants of the Keystone program must have a minimum credit score of 660.
• Assistance can only be used for the minimum required down payment and/or closing costs.
• The minimum loan amount is $500.
• The applicants’ liquid assets cannot be greater than $50,000 after deducting the funds needed to close on the loan. Liquid assets include 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 Funds from retirement accounts such as 401(k)s, IRAs and pension funds will only be considered if they can be withdrawn without a penalty due to borrower meeting age requirement and/or being retired.

The Keystone Advantage Assistance program cannot be combined with any other PHFA assistance program, with the exception of the Access Modification Loan Program. Keystone Advantage Assistance loans can be used on Conventional, FHA, VA or RD loans. All applicable FHA, VA or RD loan underwriting requirements apply, including loan-to-value and down payment requirements.