Bootcamp For Buyers

Pennsylvania Keystone Advantage Assistance Loan

The Pennsylvania Keystone Advantage Assistance Loan, offered by the Pennsylvania Housing Finance Agency (PHFA), provides financial support to homebuyers for down payments and closing costs. This program is designed to reduce upfront expenses, making homeownership more accessible to eligible residents across Pennsylvania.

Benefits

  • Offers up to $6,000 in financial assistance for down payments and closing costs, helping buyers reduce their initial out-of-pocket expenses.
  • Assistance is provided as a second loan with a zero percent interest rate, repayable over a 10-year period.
  • Can be paired with PHFA’s Keystone Home Loan or other mortgage programs for comprehensive financial support.
  • Supports first-time and repeat homebuyers who meet program eligibility requirements.
  • Encourages stable housing and long-term equity building for low- and moderate-income households.

Eligibility Requirements

  • Applicants must qualify for a PHFA first mortgage to access the Keystone Advantage Assistance Loan.
  • Income limits apply and vary based on household size and the location of the property within Pennsylvania.
  • The property must be located in Pennsylvania and used as the buyer’s primary residence.
  • A minimum credit score of 660 is required, with lender-specific underwriting criteria also applicable.
  • Participants must complete a PHFA-approved homebuyer education course to ensure preparedness for the responsibilities of owning a home.

Additional Information

The Pennsylvania Keystone Advantage Assistance Loan is a vital resource for homebuyers seeking to reduce upfront costs and achieve affordable homeownership. By offering financial assistance and pairing it with PHFA’s mortgage programs, this initiative empowers eligible buyers to secure stable housing and build long-term equity. Administered by the Pennsylvania Housing Finance Agency, the program promotes sustainable homeownership and strengthens communities throughout the state.

Frequently Asked Questions About Our Program

What is the Pennsylvania Keystone Advantage Assistance Loan?

The Keystone Advantage Assistance Loan provides affordable down payment and closing cost assistance to eligible homebuyers in Pennsylvania.

Who qualifies for the Keystone Advantage Assistance Loan?

Eligibility is open to first-time homebuyers and buyers in targeted areas who meet income, credit, and property requirements. Buyers must use the home as their primary residence.

How much assistance does the Keystone Advantage program provide?

The program offers up to 4% of the home’s purchase price or $6,000, whichever is less, to help cover down payment and closing costs.

Is the assistance provided as a loan or a grant?

The assistance is a second mortgage loan with a 0% interest rate that is repaid monthly over a 10-year term.

What is the minimum credit score required for the program?

A minimum credit score of 660 is typically required to qualify for the Keystone Advantage Assistance Loan.

Are there income limits for the program?

Yes, income limits apply and vary based on household size and property location. These limits are updated annually to reflect current market conditions.

What types of properties are eligible for the program?

Eligible properties include single-family homes, condominiums, and manufactured homes. All properties must meet program guidelines and be used as the buyer’s primary residence.

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Can the program be used for newly constructed homes?

Yes, newly built homes are eligible as long as they meet the program’s guidelines and are intended as the buyer’s primary residence.

Is homebuyer education required for the Keystone Advantage program?

Yes, completing a homebuyer education course is mandatory for first-time buyers to ensure they are prepared for the responsibilities of homeownership.

Can the Keystone Advantage Loan be combined with other programs?

Yes, the loan can be combined with the Keystone Home Loan Program and other PHFA programs to maximize financial support.

What are the repayment terms for the assistance loan?

The loan has a 0% interest rate and is repaid in equal monthly installments over a 10-year term.

Are there debt-to-income (DTI) ratio limits for the program?

Yes, the program typically allows a maximum DTI ratio of 45%, though exceptions may apply based on other financial qualifications.

What happens if I sell or refinance my home before repaying the assistance loan?

If you sell or refinance, the remaining balance of the assistance loan must be repaid in full at the time of the transaction.

What is the maximum purchase price allowed under the program?

The maximum purchase price varies by location and whether the home is in a targeted or non-targeted area, but it typically ranges up to $400,000.

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Can the program be used to refinance an existing home?

No, the Keystone Advantage Assistance Loan is designed to assist with purchasing a primary residence and does not apply to refinancing.

Are there location restrictions for the program?

Yes, the property must be located in Pennsylvania, and additional guidelines may apply depending on the home’s location.

What are the benefits of the Keystone Advantage Assistance Loan?

The program offers affordable down payment and closing cost assistance with 0% interest, making homeownership more accessible for eligible buyers.

Are there reserve requirements for the program?

No specific reserve requirements are mandated, but having financial reserves may strengthen an applicant’s overall loan profile.

How do I apply for the Keystone Advantage Assistance Loan?

Applicants must meet eligibility requirements and work with a program-approved lender who will guide them through the application process.

What is the loan term for the Keystone Advantage Assistance Loan?

The loan term is 10 years with a 0% interest rate, providing manageable monthly repayments for buyers.

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