Get Assistance with Down Payment and Closing Costs

The Pennsylvania Housing Finance Agency’s (PHFA) Keystone Flex Loan Program (K-FLEX) makes it easier for Pennsylvania homebuyers to purchase a home. K-FLEX provides more flexible guidelines to the existing Keystone Forgivable In Ten Years Loan Program (K-FIT) that assists eligible homebuyers with their down payment and closing costs.

PHFA K-FIT Program

The K-FIT Program provides down payment and closing cost assistance for homebuyers using Conventional, FHA, USDA, or VA financing. Eligible homebuyers receive a forgivable second loan of 5% of the lesser of the purchase price or appraised value with no maximum dollar limit. The loan is forgiven 10% a year over a 10-year period and has no monthly payments.

K-FIT Program Requirements

• Borrowers must meet the eligibility requirements for the Keystone Home Loan Program (K-FIT).
• Borrowers must have a minimum FICO score of 660.
• Maximum financing is required.
• Funds may be used toward down payment and/or closing costs.
• Borrowers must have a minimum contribution per PHFA guidelines.
• Homebuyer education must be completed through one of PHFA/s approved counseling agencies.
• Income limits of $119,400 for a 2-person household and $137,300 for a 3+ person household (Bucks/Montgomery Counties).

PHFA K-FLEX Program

The K-FLEX Program is a forgivable 10-year second mortgage with a $0 payment. The program offers 5% of the sales price toward closing cost assistance. There is no first-time homebuyer requirement in any county in Pennsylvania. 

K-FLEX Program Requirements

• The income limit of $204,000 to qualify is based on the borrower’s income, not household income. 
• The purchase price limit is $709,300.
• It can be used with Conventional, FHA, VA, or USDA financing.
• The maximum loan-to-value is:
  • Conventional 1-Unit: 95-97%
  • Conventional 2-Unit: 95%
  • FHA: 96.5%
  • VA or USDA: 0%
• Asset limitation of $50,000 includes checking and savings accounts, liquid accounts (stocks, bonds, CDs), and retirement funds (401k, IRAs, pension). Retirement funds do not count towards assets unless you are of age to withdraw without penalty.
• Borrowers must have a minimum credit score of 660.
• Homebuyer counseling is required. In-person counseling if FICO is below 680 and online counseling if it is above 680.

For more information on these programs, contact your Zuber Realty agent.