What's a PHFA loan?
The Pennsylvania Housing Finance Agency (PHFA) provides low interest rate mortgages to Pennsylvania first time home buyers; and home buyers who purchase in “targeted” Pennsylvania counties (under the Keystone Home Loan program). PHFA also offers down payment and/or closing cost assistance for eligible buyers, more on that later.
The Pennsylvania Housing Finance Agency does not originate the mortgage, but works through approved banks and mortgage brokers. In other words, PHFA does not take your mortgage application, you apply for the PHFA mortgage through an approved bank or broker.
The lender will suggest the appropriate loan program:
• FHA
• Conventional
• USDA also known as RHSThe Pennsylvania Housing Finance Agency does not originate the mortgage, but works through approved banks and mortgage brokers. In other words, PHFA does not take your mortgage application, you apply for the PHFA mortgage through an approved bank or broker. The lender will suggest the appropriate loan program:
• FHA
• Conventional
• VA loan
Think of loan programs like cars. Let’s say, you’re in the market for a car. You have a choice between a Ford, Chevy, Chrysler, or Toyota. In the mortgage world you have a choice of loans . . . FHA, Conventional, USDA or VA loans. Just like cars, each loan program has it’s benefits and draw backs. The lender will suggest which loan program is best for you.
Once the loan program is selected, the lender will determine whether you will “fit” into either the Keystone Home Loan program, Keystone Government Loan, or the HFA Preferred™ Loan.
| PHFA LOAN PROGRAMS | Keystone Home Loan Program | Keystone Government Loan Program | HFA Preferred Risk Sharing™ | HFA Preferred™ | |||||
|---|---|---|---|---|---|---|---|---|---|
| Loan Type | FHA | VA | USDA | Conventional | FHA | VA | USDA | Conventional | Conventional |
| Minimum Down Payment | 3.50% | 0% | 0% | 20% | 3.50% | 0% | 0% | 3% | 3% |
| Mortgage Insurance | Yes | No | Yes | No | Yes | No | Yes | No | Yes |
| Eligible Properties | 1 - 2 Units | 1 - 2 Units | 1 - 2 Units | 1 - 2 Units | 1 - 2 Units | 1 - 2 Units | 1 - 2 Units | 1 Units and Pud's | 1 Units and Pud's |
| First Time Home Buyer Requirement | Yes* | Yes* | Yes* | Yes* | No | No | No | No | No |
| Income Limit | Yes | Yes | Yes | Yes | No | No | No | Yes | Yes |
| Sales Price Limit | Yes | Yes | Yes | Yes | No | No | No | No | No |
| * The first-time buyer requirement does not apply if the borrower is purchasing in a targeted county or area. | |||||||||
