The Keystone Home Loan program is a low interest rate
mortgage designed for first time home buyers, and non-first time home buyers
who purchase in “targeted” Pennsylvania
counties).
Prospective home buyers must meet the income and sales price
limits for the respective PA county. Keystone Home Loan Purchase Price And Income Limits.pdf
Eligible properties may be single family dwellings (attached
or detached), including condominium units. If the property is a two unit
residence, the borrower must intend to live in one of the units. Three and 4
unit buildings are ineligible with the Keystone Home Loan Program.
Mortgage application is made through PHFA approved lenders. PHFA
does not work directly with the homebuyer, but works though approved lenders. Think
of PHFA as the mortgage company’s bank. You and the mortgage lender will determine
which loan program (i.e. FHA, VA, USDA, conventional) is right for you.
According to the Pennsylvania Housing Finance Agency . . .
You may be eligible for a Keystone Home Loan if you meet the following six conditions:
You may be eligible for a Keystone Home Loan if you meet the following six conditions:
1. You and all other adults who intend to live in the home within 12 months from closing are first time homebuyers. This is defined as someone who has not owned (had Title to) their principal residence during the previous three years (36 months). You are not a first-time homebuyer, but you plan to buy a home in a Targeted county or area or you are a discharged veteran of the United States Armed Forces. Target counties are indicated by a "T" in the listing of the Purchase Price and Income Limits.pdf. page
Please note that some Non-Target counties have targeted neighborhoods within them.
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 Program income limit.pdf. 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 of at least 12 credits per semester.
3. The purchase price of your prospective home does not exceed the Keystone Home Loan Program purchase price limit. This includes all costs for a complete home. It is also known as the total acquisition cost. The appraised value of land owned outright for more than two years does not need to be included.
4. You have an acceptable credit history and the ability to make monthly payments on the home you expect to buy. Generally, you should plan to use no more than 30 percent of your income for your monthly mortgage payment. A participating lender or PHFA network counseling agency can help you determine how much of a home you can afford, as well as any credit issues you may need to work on.
5. You have sufficient funds to pay standard mortgage application and closing fees. These would commonly include such things as credit reports, appraisals, title fees, etc.
6. You have sufficient funds for a down payment on your prospective home. Borrowers who have a down payment of less than 20 percent of the home’s purchase price or appraised value are required to obtain mortgage insurance to protect the lender and PHFA in the event that the mortgage becomes delinquent (you fall behind on your payments). The amount of the down payment differs according to the loan type as listed below.
Keystone Advantage Assistance Loan Program provides eligible home buyers with down payment and or closing cost assistance. Read more
