Keystone Advantage Assistance Loan Program

Keystone Advantage Assistance Loan Program is a second mortgage for homebuyers in Statewide, Pennsylvania, administered by Pennsylvania Housing Finance Agency. The Keystone Advantage Assistance Loan Program provides a second mortgage to help with downpayment and closing costs on a home purchase. Qualified borrowers can receive up to 4% of the purchase price or market value, or $6,000 (whichever is less). The loan carries 0% interest and is amortized over a 10-year term. It is paired with a PHFA first mortgage (HFA Preferred, Keystone Government, or Keystone Home Loan). Up to 4% of price or $6,000 (lesser) toward downpayment and closing costs. 0% interest. 10-year amortized repayment. Pairs with conventional, FHA, VA, or RD first mortgages. Statewide availability.

Keystone Advantage Assistance Loan Program offers between $500 and $6,000 in assistance. The program can be combined with Access Modification Loan Program. Amounts are the program's published maximums, not an offer — Pennsylvania Housing Finance Agency determines any individual award.

Keystone Advantage Assistance Loan Program is a second mortgage and is repaid under the terms set by Pennsylvania Housing Finance Agency. Repayment is triggered by Repaid in monthly installments; amortized over a 10-year term at 0% interest (second mortgage repaid concurrently with the first mortgage). The assistance is recorded in Second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Keystone Advantage Assistance Loan Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: All borrowers must have a minimum credit score of 660. A homebuyer education course is required, through PHFA-approved counseling agencies; online education via PHFA (phfatraining.org) or Framework HomeView. Face-to-face required for FICO below 680 and for borrowers obtaining the K-Gov assistance loan. Minimum loan amount $500. Liquid assets may not exceed $50,000 after deducting funds needed to close (excludes penalty-restricted retirement accounts). Assistance limited to minimum required downpayment and/or closing costs.

Keystone Advantage Assistance Loan Program sets its income limit as follows: Borrowers must meet the income limits of the underlying PHFA first mortgage program. PHFA uses county-by-county income limit tables (Keystone Home Loan/Keystone Government Appendix A; HFA Preferred Appendix B). The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Keystone Advantage Assistance Loan Program can be used for Single Family, 2-4 Unit, Condo, and Manufactured. Manufactured homes are eligible.

Keystone Advantage Assistance Loan Program serves homebuyers purchasing in Statewide, Pennsylvania.

Applications for Keystone Advantage Assistance Loan Program go through Pennsylvania Housing Finance Agency, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.