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

The Keystone Forgivable in Ten Years Loan Program (K-FIT) is available for qualified homebuyers, to provide assistance towards downpayment and/or closing costs. This program provides a second mortgage loan to help buyers supplement the costs of homeownership. Eligible borrowers may receive five percent (5%) of the lesser of the purchase price or appraised value with no maximum dollar limit in downpayment and closing cost assistance. The K-FIT loan is forgiven on an annual basis over ten years at a rate of ten percent (10%) a year.

The Keystone Forgivable in Ten Years Loan Program (K-FIT) can be used in conjunction with the following PHFA first mortgage home purchase loan programs:

Eligibility Requirements

Buyers must meet the requirements of the applicable PHFA first mortgage program, and must also meet the requirements associated with the Keystone Forgivable in Ten Years Loan Program (K-FIT) which are listed below:

  1. The K-FIT program requires all borrowers to have a minimum credit score of 660.
  2. The maximum amount of assistance to eligible homebuyers will be based upon the lesser of the purchase price or appraised value.
  3. Assistance can only be used for the minimum required downpayment and/or closing costs.
  4. The minimum loan amount is $500.
  5. The K-FIT Loan Program may not be combined with any other PHFA assistance program, except for the ACCESS Home Modification Loan Program.
  6. The K-FIT loan Program 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.
  7. The asset limitation of liquid funds 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 Funds from retirement accounts such as 401(k)s, IRAs and pension funds will only be considered if they can be withdrawn without a penalty due to borrower meeting age requirement and/or being retired.