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

The Keystone Flex with Keystone Forgivable In Ten Years Loan Program (K-FIT) provides first mortgage financing Conventional or the Federal Housing Administration (FHA) or guaranteed by Rural Development (RD) or Department of Veterans Affairs (VA). The first mortgage is paired with K-FIT which provides assistance toward downpayment and/or closing costs for eligible homebuyers in the form of a forgivable second mortgage. K-FIT provides eligible homebuyers with five percent (5%) of the lesser of the purchase price or appraised value with no maximum dollar limit. Funds for the second mortgage are forgiven on an annual basis, over ten years at a rate of ten percent (10%) per year.

The Pennsylvania Housing Finance Agency (PHFA or the Agency) offers home purchase loans with competitive interest rates and lower fees. In addition to the PHFA first mortgage, some applicants may qualify for downpayment and/or closing cost through one of many assistance programs.

The program that is best for you will depend on your specific circumstances, such as your credit history and amount of cash savings, as well as your individual preferences. MyPennslyvaniaDownPayment can help you decide.