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.
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
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.
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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
FAQs – Keystone Home Loan Program (PHFA)
