Compare the mortgage and the assistance separately in Pennsylvania
The Pennsylvania Housing Finance Agency (PHFA) offers several mortgage and assistance combinations. A useful comparison names both parts: the first mortgage that finances the purchase and any additional loan that helps with closing. Their application steps and repayment obligations are not the same.
Start a PHFA application through a participating lender
PHFA directs buyers to its network of lenders and brokers to process and close mortgage applications. The agency then purchases the loans after settlement and handles the mortgage payments. Its participating-lender page organizes contacts by county and is the official starting point for identifying a program contact.
Use the city directories above to build your broader provider shortlist. Then ask each contact whether they handle the exact PHFA first mortgage and assistance combination you want to discuss. A Mortgage Firm listing does not establish PHFA participation or confirm that a particular office offers every agency program.
Distinguish monthly repayment, forgiveness, and deferred repayment
Keystone Advantage Assistance is a second mortgage repaid monthly. Include that payment when comparing the proposed purchase budget; assistance with closing costs can still create an ongoing obligation.
Keystone Forgivable in Ten Years (K-FIT) is a second mortgage with an annual forgiveness schedule. Ask the lender to explain the conditions and what balance would remain if you left the program before completing that schedule.
Keystone Due At Time of Expiration (K-DATE) has no required monthly assistance payment, but repayment is deferred. PHFA identifies a sale, mortgage refinance, or payoff of the first mortgage as repayment events. A deferred balance should not be treated as a grant.
Questions to take with you
- Which first mortgage can this assistance accompany?
- Can you show the cash needed at closing, monthly obligations, and possible future assistance payoff separately?
- What rules apply if I also want to use employer or local assistance?
Check the accepted education format before signing up
PHFA's approved counseling agencies help with mortgage readiness, credit, budgeting, and the purchase process. The agency encourages a counseling conversation before signing a sales agreement. Its counseling page provides an agency finder as well as information about its online education option.
PHFA distinguishes borrowers who may use the online course from those who must attend in person, and individual mortgage programs can have their own education requirements. Ask the lender and counselor which format applies to your application before paying for a course. If you already have a certificate, have it checked rather than assuming that every homebuyer class meets the same requirement.
Questions to take with you
- Which course and completion documents does my proposed PHFA program require?
- Who needs to attend, and when must education be finished?
- Does the counseling agency charge for a credit report or any other part of the appointment?
Plan accessibility work alongside the purchase application
PHFA's ACCESS Home Modification program addresses accessibility changes for qualifying buyers with a disability or a household member with a disability. It is a deferred loan used with a PHFA mortgage, with repayment due on sale, transfer, or when the property is no longer owner-occupied. The program page describes eligible modifications and application responsibilities.
PHFA places responsibility for identifying needed modifications with the applicant and points to Centers for Independent Living and Area Agencies on Aging for technical help. The lender reviews a contractor proposal as part of the financing process. Identify the work, obtain the required proposal, and discuss the approval sequence before assuming the home can be adapted within your purchase budget.
Questions to take with you
- Which accessibility work and contractor documents need review before closing?
- How are improvement funds held and released, and who covers costs above the approved amount?
Published by Mortgage Firm, an independent directory. Program administrators and lenders determine current availability and eligibility. Our editorial approach