Keystone Forgivable in Ten Years Loan Program (K-FIT)

What is Keystone Forgivable in Ten Years Loan Program (K-FIT)?

Keystone Forgivable in Ten Years Loan Program (K-FIT) is a forgivable loan for homebuyers in Statewide, Pennsylvania, administered by Pennsylvania Housing Finance Agency.

• The Keystone Forgivable in Ten Years Loan Program (K-FIT) is a second mortgage that provides downpayment and/or closing cost assistance equal to 5% of the lesser of the purchase price or appraised value, with no maximum dollar limit. The loan is forgiven at 10% per year over ten years, so no repayment is owed if the homeowner stays through the forgiveness period. It is paired with the Keystone Home Loan (and Keystone Flex) and may be used with conventional, FHA, VA, or RD financing.
• 5% of price or appraised value (no maximum dollar cap).
• 0% interest, fully forgivable.
• Forgiven 10% per year over 10 years.
• No repayment if forgiveness period completed.
• Statewide availability.

How much assistance does it provide?

Keystone Forgivable in Ten Years Loan Program (K-FIT) provides assistance worth 5% of the purchase price, as set by the program.

• The program can be combined with Access Home 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 Forgivable in Ten Years Loan Program (K-FIT) is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven on an annual basis over ten years at a rate of 10% per year; no repayment if forgiveness period is completed.
• 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 Forgivable in Ten Years Loan Program (K-FIT) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Keystone Forgivable in Ten Years Loan Program (K-FIT) sets its income limit as follows: Borrowers must meet the Keystone Home Loan program income limits, published as county-by-county tables in Appendix A (maximum household income).

• 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 Forgivable in Ten Years Loan Program (K-FIT) can be used for Single Family, 2-4 Unit, Condo, and Manufactured.

• Manufactured homes are eligible.

Where does it apply?

Keystone Forgivable in Ten Years Loan Program (K-FIT) serves buyers purchasing in Statewide, Pennsylvania.

How do you apply?

Applications for Keystone Forgivable in Ten Years Loan Program (K-FIT) 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 or Framework HomeView. Face-to-face required for FICO below 680 and for borrowers obtaining the K-FIT 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.