PHFA Loans

a blue toy house with keys
Couple buying a home

Journey Bank helps Pennsylvania homebuyers access PHFA loans with low- and no-down-payment options.

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What to Know About PHFA

What PHFA is: The Pennsylvania Housing Finance Agency (PHFA) offers mortgage programs designed to make homeownership more affordable, especially for first-time buyers.

Why it matters: Corrects the common misconception that buyers need 20% down, or at least 5% down plus PMI.

  • Keystone Home Loan: PHFA's core first mortgage program; income-based eligibility, minimum 660 credit score (for conventional-insured loans), competitive fixed rates.
  • K-FIT (Keystone Forgivable in Ten Years Loan Program): Down payment/closing cost assistance up to 5% of the purchase price (or appraised value, whichever is lower); forgiven 10% per year over 10 years, so it's forgiven in full if the borrower stays in the home a decade.
  • USDA Rural Development loans: 100% financing option for eligible rural properties.
  • Conventional 3% down option: For buyers who don't qualify for or prefer not to use PHFA/USDA.

Eligibility basics: Income limits and purchase price limits apply and vary by county; minimum credit score of 660 for the PHFA/K-FIT combination; first-time homebuyer status generally required for Keystone Home Loan (with exceptions for targeted counties and veterans).

Learn More About PHFA With Kyle Miller

Kyle Miller is a dedicated mortgage lender at our Berwick Market Street community office. In this video, he walks through PHFA home loan programs and how they can make buying a home more affordable.

Contact Kyle

Journey Bank PHFA Loan FAQs

What is a PHFA loan?

PHFA stands for the Pennsylvania Housing Finance Agency, a state agency that helps make homeownership more attainable for qualified Keystone State residents.

One important distinction: PHFA is not a lender itself. Instead, it works with a network of participating lenders that originate and close mortgages under PHFA programs. That means you can work with a local lender, such as Journey Bank, to explore whether a PHFA mortgage may be a good fit for you.

The specific program available to you depends on your income, credit history, the property you want to purchase, and whether you meet other requirements.

Do I need a 20% down payment to buy a home?

Some PHFA loan options allow eligible buyers to purchase a home with a down payment or as little as 0%. Depending on the program, buyers may also qualify for assistance with down payment and closing costs

What credit score do I need to qualify?

A minimum 660 credit score for the PHFA Keystone Home Loan / K-FIT combination.

What is K-FIT and how does it help with closing costs?

K-FIT (Keystone Forgivable in Ten Years) is a down payment and closing cost assistance program from the Pennsylvania Housing Finance Agency (PHFA). It gives eligible homebuyers a Second Lein Grant worth 5% of the home's purchase price or appraised value, whichever is lower. Each year 10% of the loan is forgiven, so after 10 years none of it has to be repaid. K-FIT is paired with PHFA's Keystone Home Loan, and buyers need a minimum 660 credit score and must complete PHFA-approved homebuyer education. Talk to a Journey Bank mortgage lender to find out if you qualify.

Are there income or purchase price limits?

Yes, they vary by county; direct visitors to contact a lender or PHFA for current limits rather than stating a number that can go stale

What other low-down-payment options does Journey Bank offer besides PHFA?

USDA Rural Development (100% financing) and Conventional 3% down. Our locally-based lenders are here to talk you through your options at anytime.

Do I have to be a first-time homebuyer to use these programs?

Generally yes for Keystone Home Loan, with exceptions. Talk to a Journey Bank lender for more information.

How do I get started?

Contact a Journey Bank lender for a personalized pre-qualification conversation! (contact a lender will be hyperlinked after go-live)