Home Purchase Loans and Refinance Options

PHFA offers the following HFA loan programs for homebuyers and homeowners. What you choose will depend on your individual situation. If you have questions, please feel free to contact our Customer Solutions Center at 1.855.U.Are.Home (827.3466).

The Pennsylvania Housing Finance agency offers a conventional loan product that is designed specifically for HFAs (Housing Finance Agencies). This product offers a fully amortized 30 year fixed rate term. PHFA offers this program through a network of approved participating lenders, with PHFA as the servicer. In other words, you will work with a lender up through the loan closing, but will make your monthly payments to PHFA for the life of your loan.

HFA Preferred™(Lo MI)

With the HFA Preferred™(Lo MI) loan, mortgage insurance is provided by one of several private mortgage insurance companies when the borrower puts down less than 20 percent (20 %) towards the purchase of the home. Your lender will help you determine what the premium will cost for your specific situation.

Eligibility Requirements

The household income cannot exceed the B. Limits - HFA PreferredTM. The gross annual household income for all adults that intend to occupy the home within one year from loan closing cannot exceed the limit shown for your county. All sources of income must be included, except for income received by persons under age 18 and income received by dependents enrolled in a full-time undergraduate program.
The loan must be used towards the purchase or refinance of a primary residence.
There is no first time homebuyer requirement under this program. The borrower may have an ownership interest in another residential dwelling at the time of loan closing.
Borrowers are required to put down at least $1,000 from their own funds. The remaining funds can be from an acceptable gift or assistance program.
Acceptable credit history and the ability to make monthly payments on the home are required. Generally, you should plan to use no more than 30 percent (30 %) of your income for your monthly mortgage payment. A participating lender or PHFA network counseling agency can help you determine how much of a home you can afford, as well as any credit issues you may need to work on.
Sufficient funds are necessary to pay standard mortgage application and closing fees. Check with a PHFA participating lender to determine the specific costs. These would commonly include such things as credit reports, appraisals, title fees, transfer taxes, etc.
Mortgage loans for two-unit properties are not permitted under this program. Check out the Keystone Home and Keystone Government Home Purchase Loan programs if you are interested in purchasing one of these types of properties.

Homebuyers Only

Pre-closing homebuyer education must be completed for home purchase loans by at least one borrower. Borrowers with a FICO score at or above 680 can complete this requirement at a PHFA-approved counseling agency or by completing the online education program offered by PHFA or Homeview™.
Face-to-face homebuyer education must be completed by all borrowers purchasing a home with a FICO score below 680 at a PHFA approved counseling agency.
Sufficient funds for a downpayment on your prospective home are required. The minimum downpayment is determined by your credit profile, as specified above.
Borrowers obtaining the HFA Preferred™ loan may qualify to receive a PHFA Grant of $500 to be applied towards downpayment and closing costs. The grant does not require repayment and must be used towards the purchase of the home.
Borrowers who complete in person Pre-Purchase counseling prior to executing the agreement of sale may receive a $300 credit to be used towards closing costs. The Pre-Purchase counseling fulfills the homebuyer requirement which is mandatory for the HFA Preferred™. The Pre-Purchase counseling must be completed in-person, with a HUD approved counseling organization which can be found on the list of the PHFA network of Approved Housing Counseling Agencies.