Pennsylvania First Time Home Buyer

Essential information for first time home buyers in PA

Pennsylvania has several assistive programs for first-time homebuyers and other homebuyers who want to become a homeowner.  Pennsylvania First Time Home Buyer are fortunate to have access to several first-time homebuyer assistance programs throughout the Common wealth. They provide affordable rates and low competitive interest rates.

Which Pennsylvania first time home buyer programs are provided by PHFA?

One of Pennsylvania’s premier providers of first-time home buyer programs is the Pennsylvania Housing Finance Agency. The PHFA offers several programs, including a program that provides down payment and closing cost assistance to qualified potential first-time homebuyers.

The Pennsylvania Housing Finance Agency also offers various grants, mortgage loan programs, refinancing, and home improvement loans.

PHFA keystone advantage assistance loan program

The PHFA Keystone Advantage Assistance Loan Program is a second mortgage loan that borrowers can put towards a down payment and closing cost assistance. The program is significant as it allows qualified applicants to borrow as much as four percent (4%) of the purchase price or market value or $6000, whichever is less.

Further, the loan terms for first time home buyer loans in Pennsylvania are generous, allowing the loan to be repaid in monthly mortgage payments at zero percent (0%) interest for ten (10) years.

Application process of PHFA first-time homebuyer programs

The 1st homebuyer programs in PA do not consist of loans issued by PHFA. Instead, the mortgages originate from traditional lenders such as banks and mortgage companies.

Experienced professionals can assist you by identifying the program that best suits your current situation and guides you through every step of the application process including underwriting and PHFA approval.

What is the household eligibility of PHFA keystone advantage assistance program?

first time home buyer pa

To qualify for the PHFA Keystone Advantage Assistance program, an applicant must meet the following requirements:

  • A resident of the Commonwealth of Pennsylvania;
  • A minimum credit score of 660;
  • Proceeds of the loan must go towards a down payment or closing costs of a conventional, FHA, VA, or RD loan;
  • Minimum loan amount of $500;
  • Borrower assets no greater than $50,000;
  • The borrower must meet household income limits;
  • The borrower must meet home price limits;
  • May not be combined with other PHFA assistance programs, except the Access Modification Loan Program.

What are the 2021 household income limits?

The PHFA Keystone Home Loan Program has household income limits for first time home buyers in PA. Each Pennsylvania county has its limits, which can be found on the PHFA’s website.

As of the time of this writing, the purchase price limits range from a low of $311,900 to a high of $461,400 in Philadelphia. Income limits are likewise set for each county.

Additionally, they vary depending upon the number of persons in the household. For one and two-person households, the limits range from $81,000 to $115,900. Limits for households with three or more members range from $93,100 to $135,000.

What are the limits of the PHFA grant program?

The PHFA offers eligible households grants of up to $500 that can be used for down-payment and closing cost assistance. The grants, which do not have to be repaid, are only available for eligible applicants obtaining the HFA Preferred TM(Lo MI) loan. However, the grant may be combined with the Keystone Advantage Assistance Loan Program.

Additional programs beneficial for the homebuyers

In addition to the aforementioned programs, the PHFA also offers the Keystone Forgivable in Ten Years Loan Program (K-FIT). This program acts as a second mortgage for up to 5% of the home’s purchase price or appraised value, whichever is less. Beneficially, this program has no maximum dollar amount and is forgiven annually at a rate of ten percent (10%).

Another PHFA program is the HOMEstead down-payment and Closing Cost Assistance Loan program. This program offers loans of up to $10,000 at no interest. The proceeds must be used for down-payment and closing cost assistance. Best of all, the loan is forgiven at an annual rate of 20% for five years.

Searching for a loan professional? Contact us today.

If you and your family are interested in payment assistance programs such as those from PHFA, contact one of the loan professionals at Dynamic Funding today. Call us at 215-364-7171 to know how we can provide guidance for the first-time home buyers.