Keystone Assistance Loan

KHL-07/10

status, gender, national origin, political affiliation, race, or religion.

programs and employment without regard to age, disability, family
policy that all persons shall have equal access to its housing
The Pennsylvania Housing Finance Agency is committed to the

www.phfa.org
Harrisburg, PA 17101
211 North Front Street
A Keystone Assistance Loan helps qualified borrowers
pay the downpayment and closing costs associated with
their PHFA first mortgage. The assistance is a no-interest
second mortgage that does not require repayment until Keystone Home Loan Program
the first mortgage is paid in full or the home is sold,
refinanced, or transferred. The maximum loan amount is Home purchase loans with affordable,
$1,500* in conjunction with the Keystone Home Loan attractive terms are available to qualifying
Program. Eligibility is based on need. homebuyers throughout the Commonwealth
*Subject to change and availability. under PHFA’s Keystone Home Loan Program.
Buyers also save on fees, including a 25 per-
Other Considerations cent discount on title insurance in most cases,
Qualified buyers may also use the Keystone Home upon request. Both new and existing homes
Loan Program to purchase and repair a home. are eligible for Agency financing.
Additionally, borrowers with disabili-
ties, or who have family members For the convenience of those interested in
with disabilities living with them, may taking advantage of this program, loan trans-
qualify for assistance to make acces- actions are handled by local participating
sibility modifications to the home they lenders across the state.
are purchasing.
For FHA and conventional loans, Additional information about the program
borrowers must have a downpayment between three and may be obtained by calling the toll-free mort-
five percent of the purchase price. With FHA insured gage hotline, Monday through Friday, 7:30
loans, all of the required funds can be a gift. For conven-
tional loans, borrowers with a credit score of at least 660 Keystone a.m. until 5:00 p.m., or by checking the PHFA
Web site, www.phfa.org.
only need a three percent downpayment, of which only
$1,000 has to come from their own funds and the rest
can be from a family gift or non-profit grant. For buyers
Home Loan 1.800.822.1174*
with a credit score below 660, a downpayment of five
percent is required for conventional
Program *Toll-free call within Pennsylvania

loans, of which three percent must be

from their own funds. The additional
two percent can be from a source
mentioned above.
For VA and Rural Housing Service
loans, no downpayment is required. 211 North Front Street
RHS loans are not available in Philadelphia and Harrisburg, PA 17101
Delaware counties or major cities. 1.800.822.1174
Homebuyer education and counseling TTY 717.780.1869
Borrowers who choose PHFA financing to buy their home www.phfa.org
may, if they desire, elect to participate in credit counseling
and homebuyer education through the PHFA Comprehen-
sive Housing Counseling Initiative (CHCI). Any borrower
with a FICO credit score lower than 660 (lowest middle
score) is required to receive counseling through a PHFA-
CHCI network agency prior to loan closing. PHFA pays for
the counseling. Edward G. Rendell, Governor
Brian A. Hudson, Sr., Executive Director
 The Pennsylvania Housing Finance Agency
takes great pride in helping Commonwealth
citizens become homeowners. The informa-
tion we provide in our various publications,
through our counseling network, at participat-
ing lending institutions, and on our Web site is
designed to take a little of the mystery out of
what can sometimes be a complicated
process. Good luck with your efforts.
Brian A. Hudson, Sr.
PHFA Executive Director
& Chief Executive Officer
Homebuying Tips
Correct any outstanding credit issues. Bad
credit prevents more people from buying houses
than anything else. Make sure your credit is good
before starting the process. Pay all your bills on
time, clean up any discrepancies, and establish a
relationship with a lender who will offer guidance
about savings, debts, and credit. Your risk of becom-
ing a victim of predatory lending decreases dramati-
cally if you have good credit at the time you try to
buy a house.
Consider a home inspection. Homebuyers may
be expecting more than they should from an
appraisal of the house they want to buy. They often
think that the appraisal will tell them the kind of
shape the property is in. That isn’t the case at all
and they should know the difference. An appraisal
determines the value of a property. An inspection
reveals its condition. The two are not the same, but
are often confused by homebuyers.
To find out what’s right or wrong
about a house, a prospective
purchaser should, for their own
protection, consider a home
inspection before reaching a final
agreement with the seller.
Maximum Residence Purchase Prices,
Income Limits, and Target Areas
If you are not eligible for the Keystone Home Loan or the Keystone Home Loan PLUS programs, you may be eligible for our
Keystone Government Loan Program. Please visit www.phfa.org or call 1.800.822.1172 for details.
Income Limit Income Limit
County (Target Areas Purchase Family size (persons) County (Target Areas Purchase Family size (persons)
indicated by a “T”) Price Limit 1 or 2 3 or more indicated by a “T”) Price Limit 1 or 2
Adams . . . . . . . . . . . . $ 243,000 $ 67,400 $ 77,200 Lackawanna (T) . . . . . $ 298,000 $ 77,000 $ 89,800
Allegheny* . . . . . . . . 294,000 75,600 88,200 Lancaster* . . . . . . . . . 345,000 80,000 93,300
Armstrong (T) . . . . . . 351,000 77,000 89,800 Lawrence (T) . . . . . . . 298,000 77,000 89,800
Beaver* . . . . . . . . . . . 294,000 75,600 88,200 Lebanon* . . . . . . . . . 243,000 67,800 77,400
Bedford (T) . . . . . . . . 298,000 77,000 89,800 Lehigh* . . . . . . . . . . . 362,000 84,000 98,000
Berks* . . . . . . . . . . . . 270,000 75,900 87,100 Luzerne (T) . . . . . . . . 298,000 77,000 89,800
Blair (T) . . . . . . . . . . . 298,000 77,000 89,800 Lycoming (T) . . . . . . . 298,000 77,000 89,800
Bradford (T) . . . . . . . . 298,000 77,000 89,800 McKean . . . . . . . . . . . 243,000 64,200 73,800
Bucks . . . . . . . . . . . . 378,000 93,900 109,600 Mercer (T) . . . . . . . . . 298,000 77,000 89,800
Butler . . . . . . . . . . . . . 294,000 75,600 88,200 Mifflin (T) . . . . . . . . . 298,000 77,000 89,800
Cambria (T) . . . . . . . . 298,000 77,000 89,800
Monroe . . . . . . . . . . . 243,000 66,800 77,400
Cameron (T) . . . . . . . 298,000 77,000 89,800
Montgomery . . . . . . . . 378,000 93,900 109,600
Carbon . . . . . . . . . . . . 362,000 84,000 98,000 Montour (T) . . . . . . . . 298,000 77,000 89,800
Centre* . . . . . . . . . . . 252,000 69,600 80,200
Northampton* . . . . . . 362,000 84,000 98,000
Chester . . . . . . . . . . . 378,000 93,900 109,600 Northumberland (T) 298,000 77,000 89,800
Clarion (T) . . . . . . . . . 298,000 77,000 89,800
Perry (T) . . . . . . . . . . 298,000 85,200 99,400
Clearfield (T) . . . . . . . 298,000 77,000 89,800
Clinton (T) . . . . . . . . . 298,000 77,000 89,800 Philadelphia (T) . . . . 417,000 93,900 109,600
Columbia (T) . . . . . . . 298,000 77,000 89,800 Pike . . . . . . . . . . . . . . 348,000 76,500 89,300
Crawford (T) . . . . . . . 298,000 77,000 89,800 Potter (T) . . . . . . . . . . 298,000 77,000 89,800
Schuylkill (T) . . . . . . 298,000 77,000 89,800
Cumberland . . . . . . . . 243,000 71,000 81,600
Dauphin* . . . . . . . . . 243,000 71,000 81,600 Snyder (T) . . . . . . . . . 298,000 77,000 89,800
Delaware* . . . . . . . . . 378,000 93,900 109,600 Somerset (T) . . . . . . . 298,000 77,000 89,800
Elk . . . . . . . . . . . . . . . 243,000 68,400 78,500 Sullivan (T) . . . . . . . . 298,000 77,000 89,800
Erie* . . . . . . . . . . . . . 243,000 68,500 79,300 Susquehanna(T) . . . . 298,000 77,000 89,800
Fayette (T) . . . . . . . . . 351,000 77,000 89,800 Tioga (T) . . . . . . . . . . 298,000 77,000 89,800
Forest (T) . . . . . . . . . . 298,000 77,000 89,800 Union . . . . . . . . . . . . . 243,000 68,600 78,700
Franklin . . . . . . . . . . . 243,000 67,500 77,600 Venango (T) . . . . . . . . 298,000 77,000 89,800
Fulton (T) . . . . . . . . . 298,000 77,000 89,800 Warren . . . . . . . . . . . . 243,000 64,500 75,300
Greene (T) . . . . . . . . . 298,000 77,000 89,800 Washington (T) . . . . . 351,000 77,000 89,800
Huntingdon (T) . . . . . 298,000 77,000 89,800 Wayne (T) . . . . . . . . . 298,000 77,000 89,800
Indiana . . . . . . . . . . . 243,000 64,200 73,800 Westmoreland* . . . . . 294,000 75,600 88,200
Jefferson (T) . . . . . . . . 298,000 77,000 89,800 Wyoming (T) . . . . . . . 298,000 77,000 89,800
Juniata (T) . . . . . . . . . 298,000 77,000 89,800 York* . . . . . . . . . . . . . 380,000 82,400 96,100
* These counties contain one or more targeted census tracts.
The maximum purchase price for a two-unit property (duplex/double) cannot be greater than ten percent higher than the current single-
unit limit, not to exceed $417,000.
PLEASE NOTE: Purchase price limits, income limits, target counties, and other criteria may change at any time without previous notice. For
the most current information about the program, please contact the PHFA mortgage hotline: 1.800.822.1174. Web site: www.phfa.org
Program Requirements
You may be eligible for a PHFA-financed, 30-year
fixed-rate home purchase loan if:
• You have not owned your principal home in the pre-
vious three years,
or
3 or more
• You now own or previously owned a home but plan to
buy a house in one of 39 target counties where the first-
time homeowner requirement is waived. The target
counties are indicated by a “T” in the table of maximum
purchase prices and income limits contained in this
brochure.
• Veterans (and their spouses, if applicable) do not
need to meet the first-time homebuyer requirement. A
veteran for this purpose is defined as someone who
served in active duty of the Armed Forces or Reserves
and who was discharged or released under conditions
other than dishonorable.
• The total combined present income (projected over
the next 12 months) of all adults intending to occupy the
home does not exceed the income limit for the county in
which the home is located.
• The price of the house you intend to buy does not
exceed the maximum purchase price established for the
county in which it is located.
• You have an acceptable credit history and the ability
to make monthly payments on the home you expect to
purchase. Your monthly mortgage payment, which
includes principal, interest, taxes, and insurance, may
not exceed approximately one-third of your monthly
gross income.
• The total of your monthly mort-
gage payments and other monthly
payments (car loans, installment
debt, etc.) does not exceed approxi-
mately 40 percent of your current
gross monthly income.
• You have sufficient funds to pay
normal fees charged by lenders in connection with the
mortgage application and closing process, such as credit
reports, appraisals, title fees, etc. In addition, you may
be required to pay an origination fee in the amount of
one percent of the mortgage amount and a $300 qualify-
ing fee. Check with your participating lender to deter-
mine specific costs.
• The house you intend to buy becomes your principal
residence and is either a one- or two-unit dwelling.