PHFA Keystone Home Loan Program

Written by Chloe GoodshoreSeptember 26th, 20224 minute read

Jump to section: How the Keystone Home Loan Program works | Eligibility and qualifications | Types of loans and assistance | Benefits | FAQs

The Keystone Home Loan Program helps make home buying more affordable in Pennsylvania. It offers competitive interest rates, low down payments, and other benefits to eligible borrowers.

To get a mortgage through the Keystone Home Loan Program, you need to be a first-time home buyer, have veteran status, or buy a house in a targeted area.

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How does the Keystone Home Loan Program work?

The Pennsylvania Housing Financing Agency (PHFA) runs the Keystone Home Loan Program, though it's not a lender itself. Instead, lenders agree to participate in the Keystone Home Loan Program.

1. Reach out to a PHFA counselor. Your counselor will make sure you’re ready to buy a home and guide you on the process. Your counselor will want to discuss whether or not you qualify, so it’s a good idea to check your credit score before you get started.

» MORE: How to Check Your Credit Score for Free (Without Hurting It)

2. Submit your mortgage application to a participating lender. You can get a 30-year fixed-rate mortgage from a conventional, FHA, or VA lender or a rural development (RD) loan. Once the loan gets approved, PHFA buys and begins servicing your loan.

3. Make your monthly mortgage payments straight to PHFA. The mortgages available through the Keystone Home Loan Program have competitive interest rates, limited loan fees, and low (or no) down payments. You’ll still have to pay interest and loan fees, though.

Who is eligible for a Keystone Home Loan?

To get a loan through the Keystone Home Loan Program, you need to meet any one of three basic requirements:

  • All adults in your household are first-time home buyers or haven't owned a home in the past three years.
  • You are a veteran of the U.S. Armed Forces.
  • You’re buying a home in a target county or neighborhood (as designated by the PHFA).

» LEARN: How to apply for a PHFA loan

🔎 Other PHFA loan qualifications

  • Household income within the Keystone Home Loan Program guidelines
  • An acceptable credit history (at least a 660 credit score for conventional loans)
  • Enough income to afford mortgage payments
  • Enough cash on hand to pay for a down payment, mortgage fees, and closing costs
  • The house you buy is within purchase price limits

PHFA income and purchase price limits

The income and purchase price limits for the Keystone Home Loan program depend on both the county you want to buy in and your household size.

County
Purchase price limit
Income limit (1–2 member households)
Income limit (3+ member households)
Adams
$349,500
$90,300
$103,800
Allegheny
$349,500
$95,400
$109,700
Armstrong*
$427,100
$108,100
$126,100
Beaver
349,500
$95,400
$109,700
Bedford*
$427,100
$108,100
$126,100
Berks
$283,300
$76,900
$88,400
Blair*
$427,100
$108,100
$126,100
Bradford*
$427,100
$108,100
$126,100
Bucks
$396,500
$105,400
$121,200
Butler
$349,500
$95,400
$109,700
Cambria*
$427,100
$108,100
$126,100
Cameron*
$427,100
$108,200
$126,100
Carbon
$349,500
$90,600
$104,100
Centre
$349,500
$97,300
$111,800
Chester
$396,500
$105,400
$121,200
Clarion*
$427,100
$108,100
$126,100
Clearfield*
$427,100
$108,100
$126,100
Clinton*
$427,100
$108,100
$126,100
Columbia*
$427,100
$108,100
$126,100
Crawford*
$427,100
$108,100
$126,100
Cumberland
$349,500
$94,300
$108,400
Dauphin
$349,500
$94,300
$108,400
Delaware
$396,500
$105,400
$121,200
Elk
$349,500
$90,100
$103,600
Erie
$349,500
$90,100
$103,600
Fayette*
$427,100
$114,400
$133,500
Forest*
$427,100
$108,100
$126,100
Franklin
$349,500
$90,100
$103,600
Fulton*
$427,100
$108,100
$126,100
Greene*
$427,100
$108,100
$126,100
Huntingdon*
$427,100
$108,100
$126,100
Indiana
$349,500
$90,100
$103,600
Jefferson*
$427,100
$108,100
$126,100
Juniata*
$427,100
$108,100
$126,100
Lackawanna*
$427,100
$108,100
$126,100
Lancaster
$349,500
$90,200
$103,700
Lawrence*
$346,300
$92,200
$107,600
Lebanon
$349,500
$90,100
$103,600
Lehigh
$349,500
$90,600
$104,100
Luzerne*
$427,100
$108,100
$126,100
Lycoming*
$427,100
$108,100
$126,100
McKean
$349,500
$90,100
$103,600
Mercer*
$427,100
$108,100
$126,100
Mifflin*
$427,100
$108,100
$126,100
Monroe
$349,500
$90,100
$103,600
Montgomery
$396,500
$105,400
$121,200
Montour*
$427,100
$108,100
$126,100
Northampton
$335,300
$90,600
$104,100
Northumberland*
$427,100
$108,100
$126,100
Perry*
$427,100
$113,100
$132,000
Philadelphia*
$484,600
$126,400
$147,500
Pike
$512,800
$106,900
$124,700
Potter*
$427,100
$108,100
$126,100
Schuylkill*
$427,100
$108,100
$126,100
Snyder*
$427,100
$108,100
$126,100
Somerset*
$427,100
$108,100
$126,100
Sullivan*
$427,100
$108,100
$126,100
Susquehanna*
$427,100
$108,100
$126,100
Tioga*
$427,100
$108,100
$126,100
Union
$349,500
$90,100
$103,600
Venango*
$427,100
$108,100
$126,100
Warren
$349,500
$90,100
$103,600
Washington*
$427,100
$114,400
$133,500
Wayne*
$427,100
$108,100
$126,100
Westmoreland
$349,500
$ 95,400
$109,700
Wyoming*
$427,100
$108,100
$126,100
York
$349,500
$93,300
$107,200
* Designated target county or neighborhood by PHFA

Source: PHFA, Keystone Home Loan Program Maximum Purchase Price and Income Limits, as of August 1, 2022

What types of home loans can you get through the Keystone Home Loan Program?

The Keystone Home Loan Program offers several different types of mortgages, each with its own borrower requirements:

  • Conventional loans
  • FHA loans (backed by the Federal Housing Administration)
  • VA loans (guaranteed by the U.S. Department of Veterans Affairs)
  • Rural Development (RD) loans (backed by the USDA)

Fortunately, all Keystone Home Loan Program loans have low minimum down payment requirements.

Minimum down payment by loan type

Loan type
Min. down payment
Conventional
3%
FHA loan
3.5%
VA loan
0%
RD loans (USDA)
0%

» MORE: How to Buy a House With No Money Down

Keystone Advantage Assistance Loan Program

The Keystone Advantage Assistance Loan Program helps cover closing costs and down payments. It gives you a second mortgage loan that maxes out at $6,000 or 4% of the home’s purchase price. You get 10 years to repay your second mortgage, and you have a 0% interest rate. Learn more.

What are the benefits of the PHFA Keystone Home Loan Program?

The Keystone Home Loan Program helps home buyers keep costs down by offering:

  • Several loan providers so you can shop for the best savings
  • Competitive interest rates and limited loan fees compared with normal lenders
  • Down payment and closing cost assistance through the Keystone Advantage Assistance Loan Program

As an added perk, the PHFA will service your loan for life. That means your loan won't be sold off to some random servicer.

» FIND: First-Time Home Buyer Grants and Programs 2022

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Keystone Home Loan Program FAQs

What credit score is needed to buy a house in PA?

To buy a house, you need at least a 620 credit score if you want a conventional mortgage; 660 will give you more options. Some loan programs, like FHA loans, let you buy a house with a credit score as low as 500.

How long does it take to get approved for PHFA?

It can take up to 60 days to get approved for a PHFA loan program.

What type of loan is PHFA?

PHFA–backed lenders offer conventional, FHA, VA, and RD loans. All loans are 30-year fixed-rate mortgages.

Does PHFA have income limits?

Yes, PHFA income limits vary by county and household size.