K-FIT (Keystone Forgivable in 10 Years Loan)

Saving for a down payment is one of the biggest challenges first-time homebuyers face. In Pennsylvania, the K-FIT (Keystone Forgivable in Ten Years Loan) program, offered by the Pennsylvania Housing Finance Agency (PHFA), is designed to make homeownership easier by providing down payment and closing cost assistance—without adding long-term debt.

If you’re searching for K-FIT (Keystone Forgivable in Ten Years Loan), this guide will explain how it works, who qualifies, and why it’s one of the most powerful homebuyer assistance programs in Pennsylvania.

What Is K-FIT?

The Keystone Forgivable in Ten Years Loan (K-FIT) is a second mortgage program that provides homebuyers with help toward their down payment and closing costs. Unlike traditional loans, K-FIT is forgivable—meaning you won’t have to pay it back if you stay in your home long enough.

Amount Available: Up to 5% of the home’s purchase price or appraised value (whichever is less).
Forgiveness Schedule: Loan is forgiven at 10% per year over 10 years.
Interest Rate: 0% (no interest charged).
Use: Must be combined with a PHFA first mortgage.

Example: Buy a $200,000 home → you could receive up to $10,000 in assistance. Stay in the home for 10 years, and the entire $10,000 is forgiven.

Who Qualifies for K-FIT?

To be eligible, you must:

Qualify for a PHFA first mortgage, such as Keystone Home Loan, FHA, VA, USDA, or HFA Preferred™.
Be a first-time buyer, unless you’re purchasing in a PHFA-targeted area.
Meet PHFA income and purchase price limits, which vary by county and household size.
Use the home as your primary residence.
Maintain ownership for forgiveness: If you sell, refinance, or move before the 10 years are up, you may need to repay the remaining balance.

Benefits of the K-FIT Program

Upfront Savings: Get up to 5% of your home price toward down payment & closing costs.
Forgivable Loan: Stay in your home for 10 years and the loan is fully forgiven.
0% Interest: No extra fees or interest—every dollar goes toward your home.
Stackable: Can be combined with Keystone Home Loan and other PHFA programs for maximum affordability.

Example: How K-FIT Works

Home Price: $220,000

5% K-FIT Assistance = $11,000
If you stay in the home:
- After Year 1 → $1,100 forgiven
- After Year 5 → $5,500 forgiven
- After Year 10 → $11,000 fully forgiven

This turns what could have been extra debt into free assistance over time.

K-FIT vs. Keystone Advantage Assistance Loan

Feature	K-FIT Forgivable Loan	Keystone Advantage Loan
Max Assistance	Up to 5% of purchase price	Up to $6,000 or 4%
Interest	0%	0%
Repayment	Forgiven over 10 years (no repayment if conditions met)	Repay over 10 years (monthly payments required)
Best For	Buyers planning to stay in their home long-term	Buyers who need short-term help covering costs

→ Read more: Keystone Home Loan Program Pennsylvania

Why Work With Loan Factory?

At Loan Factory, we make it simple to access K-FIT and other PHFA programs:

One application connects you to Keystone Home Loan, K-FIT, and 240+ wholesale lenders.
AI-powered tools ensure you’re matched to the best program.
Local advisors in Pennsylvania guide you through every step.
Zero junk fees—only real, required costs.

“We’ve helped thousands of first-time buyers in Pennsylvania use K-FIT to cut upfront costs and move into their first home faster.” – Thuan Nguyen, CEO

If you’re ready to see if you qualify for the K-FIT (Keystone Forgivable in Ten Years Loan), Loan Factory can help you apply in minutes.

Check your eligibility today and find out how much forgivable assistance you can receive for your first home.