Keystone Advantage Assistance Loan Program

What is Keystone Advantage Assistance Loan Program?

Keystone Advantage Assistance Loan Program is a deferred second loan 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.

How much assistance does it provide?

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.

Do you have to pay it back?

Keystone Advantage Assistance Loan Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• 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.

Who qualifies?

Keystone Advantage Assistance Loan Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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

• Manufactured homes are eligible.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, 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..

2. 2

   Contact Pennsylvania Housing Finance Agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.