Pennsylvania First Time Home Buyer Assistance

PHFA’s Purchase Improvement loan allows buyers who qualify for a Keystone Home Loan or a Keystone Home Loan PLUS  to purchase and improve/repair a home within one transaction. Eligible buyers may include between $1,000 and $15,000 for repairs and/or improvements with a conventional PHFA first mortgage, as long as the As Completed appraised value supports the cost of the repairs. This allows the buyer to make needed repairs right away, without having to take out another loan at a higher rate and with a shorter repayment period.

Common repairs or improvements are:

The purchase price plus the cost of the repairs can not exceed PHFA’s applicable purchase price limit.  The loan amount will be based on the lesser of the total acquisition cost or the as completed appraised value. 

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PHFA’s Tax Credit Advance Loan Program, or TCA, provides an upfront, interest free loan to eligible borrowers so they can apply their 2009 or 2010 federal income tax refund to their down payment and/or closing costs associated with the purchase of their home.  This is not a grant,  this is a loan that must be repaid. Loans closed in 2009 are due to be paid back to PHFA by June 30, 2010. Loans closed in 2010 are due to be paid back to PHFA by June 30, 2011.   

First-time homebuyers may receive the lesser of 10% of the purchase price OR $6,000 for newly constructed homes, $5,000 for existing homes .  Non first-time homebuyers may receive the lesser of 10% of the purchase price OR $4,000 for newly constructed homes, $3,000 for existing homes. 

A minimum down payment is required.  You must invest at least $1,000 of your own funds for conventional loans. This is not required for loans insured by FHA or guaranteed by USDA/Rural Development (RD) or the Veteran’s Administration (VA).  

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