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Keystone Advantage Assistance Loan Program

PHFA offers homeownership professionals / lenders the following purchase assistance loan program that can be used with PHFA first mortgage home purchase loans.

The Keystone Advantage Assistance Loan Program provides a second mortgage loan to help with the costs associated with the purchase of a home. Qualified borrowers can receive up to four percent (4%) of the purchase price or market value or $6,000 (whichever is less) in downpayment and closing cost assistance to be repaid monthly. The assistance loan will be amortized over a ten year term at zero percent (0%) interest.

The Keystone Advantage Assistance can be used in conjunction with the following PHFA first mortgage home purchase loan programs:

  • HFA Preferred™(Lo MI), or
  • Keystone Government Loan,
  • Keystone Home loan.

Eligibility Requirements

Buyers must meet the requirements of the applicable PHFA first mortgage program, and must also meet the requirements associated with the Keystone Advantage Program which are listed below:

  1. The Keystone Advantage Assistance requires all borrowers to have a minimum credit score of 660.
  2. Assistance can only be used for the minimum required downpayment and/or closing costs.
  3. The minimum loan amount is $500.
  4. Borrower(s) liquid assets may not be greater than $50,000 after deducting the funds needed to close on the loan. This includes cash and funds in checking and savings accounts, stocks, bonds, certificates of deposit and similar liquid accounts. Funds from retirement accounts such as 401(k)s, IRAs and pension funds will only be considered if they can be withdrawn without a penalty due to borrower meeting age requirement and/or being retired.
  5. The Keystone Advantage Assistance program may not be combined with any other PHFA assistance program, with the exception of the Access Modification Loan Program.
  6. Keystone Advantage Assistance loans may be used on Conventional, FHA, VA or RD loans. All applicable FHA, VA or RD loan underwriting requirements apply, including loan to value and downpayment requirements.