The Keystone Home Loan Program , offered by the Pennsylvania Housing Finance Agency (PHFA), is one of the most popular financing options for first-time home buyers in Pennsylvania . Designed to make homeownership more affordable, it provides stable fixed-rate mortgages and can be paired with other PHFA assistance programs for even greater savings.
Keystone Home Loan Program Key Features of the Keystone Home Loan Program Fixed-Rate Mortgages: 30-year terms with predictable monthly payments. Loan Types Available: Conventional, FHA, VA, and USDA. First-Time Buyer Friendly: Special eligibility for buyers who haven’t owned a home in the past 3 years, or those purchasing in a targeted area. Income & Purchase Price Limits: Varies by county and household size, designed to keep the program accessible. Pair With Assistance: Can be combined with PHFA’s Keystone Advantage, K-FIT, or HOMEstead for down payment and closing cost help. PHFA loan requirements PHFA loan requirements To qualify for the Keystone Home Loan Program, borrowers typically must:
Be a first-time home buyer (unless purchasing in a designated targeted area). Meet income and purchase price limits based on Pennsylvania county. Use the home as their primary residence. Have a minimum credit score of around 620–660, depending on the loan type. Complete a homebuyer education course, if required by PHFA. Benefits of Keystone Home Loan Program Lower Interest Rates: Competitive fixed rates compared to standard market loans. Flexible Options: Choose FHA, VA, USDA, or Conventional depending on your financial profile. Stackable with Assistance: Combine with K-FIT forgivable loans or Keystone Advantage zero-interest loans for upfront savings. Stable Payments: 30-year fixed rate provides financial peace of mind. → Read more: Keystone Advantage Assistance Loan
Example: Keystone Home Loan Program Calculator Imagine you’re buying a $250,000 home in Allegheny County.
Without PHFA, you might need a larger down payment and face higher PMI costs. With the Keystone Home Loan, you could:Put as little as 3% down (Conventional) or 3.5% (FHA). Pair with Keystone Advantage Loan to cover up to $6,000 of down payment/closing costs. Potentially qualify for K-FIT forgivable assistance, reducing your long-term financial burden. Loan Option
Down Payment
Upfront Assistance
Closing Costs Paid Out-of-Pocket
Monthly PMI
Long-Term Benefit
Standard FHA Loan $8,750 (3.5%) None ~$7,500 Higher (MIP required for life of loan unless refinanced) Limited — higher long-term costs Standard Conventional Loan $7,500 (3%) None ~$8,000 Medium (PMI until 20% equity, then cancels) Moderate savings once PMI drops Keystone Home Loan (PHFA) $7,500 (3%) or $8,750 (3.5%) Up to $6,000 (Keystone Advantage) + K-FIT forgivable loan (5%) Much lower (covered by assistance) Lower PMI with HFA Preferred™ option Significant — upfront savings + long-term forgivable assistance
Is Keystone Home Loan Right for You? Choose Keystone if you:
Are a first-time buyer or purchasing in a targeted area. Need a stable monthly payment with a fixed rate. Want to combine down payment assistance for maximum savings. Meet the income and purchase price limits in your county. If you’re ready, Loan Factory can help you apply in minutes and see if Keystone is your best option.
Learn more in “Best First-Time Homebuyer Programs in Pennsylvania ”
Explore our Loan Factory review How Loan Factory Helps You Access Keystone Loans At Loan Factory, we make applying for the Keystone Home Loan Program simple:
One application gives you access to PHFA-approved lenders across Pennsylvania. Instant comparison against 240+ wholesale lenders—so you know Keystone is the best fit. AI-powered system auto-matches your profile with PHFA programs. Local advisors guide you through income limits, targeted areas, and paperwork. “We’ve helped thousands of Pennsylvania first-time buyers unlock PHFA benefits while paying zero junk fees.” – Thuan Nguyen, CEO of Loan Factory
Ready to see if Keystone Home Loan is your best fit?
Check your Keystone eligibility now
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This content is for informational purposes only and not a commitment to lend. Loan terms, rates, and approval depend on credit, underwriting, and investor guidelines.
FAQs – Keystone Home Loan Program (PHFA) 
