PHFA Income Limits 2026: County Table + the No-Limit Gov Loan Loophole
Two PHFA facts most guides bury: the Keystone Government Loan has NO income limit (FHA/VA/USDA pairs skip the cap entirely), and repeat buyers qualify for Keystone Home Loan. Here's the county table — and when to take the no-cap lane.
Check Your PHFA Eligibility — Free
County cap OR the no-limit gov lane. 2 minutes, no credit pull.
NO CAP
Keystone Gov Loan
FHA/VA/USDA lane
~$95-145K
Conventional Cap
by county
YES
Repeat Buyers
Keystone Home Loan
640
Min Credit
conventional lane
PHFA Income Limits — County Tiers (Keystone Home Loan)
| Tier | Counties | Note |
|---|---|---|
| Philly metro (~$125-145K) | Philadelphia, Montgomery, Bucks, Delaware, Chester | SEPA runs the state's highest caps |
| Mid-high (~$115-125K) | Allegheny (Pittsburgh), Lehigh, Northampton, Dauphin, Lancaster | Pittsburgh + Lehigh Valley + Harrisburg |
| Standard (~$105-115K) | York, Erie, Luzerne, Berks, Westmoreland | Mid-size Pennsylvania metros |
| Base (~$95-105K) | Rural PA — the majority of counties | Lowest caps, lowest prices |
Applies to Keystone Home Loan (conventional) only — the Keystone Gov Loan skips income caps. Approximate; verify at phfa.org.
The Two Lanes — Which Cap Applies
| Program | Income Cap | Price Cap | Key Rules |
|---|---|---|---|
| Keystone Gov Loan (FHA/VA/USDA) | NO income limit | Standard loan limits apply | 🔑 The loophole — government-backed pairs skip the income cap entirely |
| Keystone Home Loan (conventional) | County limits above | County acquisition caps | Repeat buyers eligible — income cap still applies |
| Keystone Advantage (DPA) | Follows first mortgage | Follows first | ~4% or up to $6K+ deferred second at 0% |
| K-FIT (forgivable 2nd) | Keystone Home Loan rules | Same caps | 5% forgivable over 10 yrs for conventional buyers |
The Gov-Loan Play — When the Cap Doesn't Matter
Scenario: two-income household at $150K in Chester County — over the ~$140K conventional cap. Keystone Home Loan is out. But the Keystone Gov Loan (FHA pair) doesn't apply the income cap — same PHFA rate structure, same DPA layering options, no cap.
The trade-off: FHA pairs carry mortgage insurance for the loan term (or 11+ years at 10%+ down). Conventional K-FIT buyers avoid lifetime MI. Run total cost, not just eligibility.
Veterans skip it entirely: VA pairs need $0 down, no MI — and Gov-lane rules mean no income cap either. Best deal in the PHFA stack for eligible vets.
Frequently Asked Questions
Q1. What is the PHFA income limit in my county?
For Keystone Home Loan (conventional), roughly $95K rural to ~$145K in Philly-metro counties. BUT — the bigger fact most guides miss: the Keystone GOVERNMENT Loan (FHA/VA/USDA pairs) has NO income limit at all. If you're over the conventional cap, the gov-loan lane keeps PHFA programs on the table. Verify county figures at phfa.org.Check my eligibility — free →
Q2. Does the Keystone Gov Loan really have no income limit?
Correct — PHFA's government-backed first mortgage (FHA, VA, USDA pairs) skips the household income cap that gates the conventional Keystone Home Loan. It's the least-known split in Pennsylvania housing finance: over the income limit? Take the FHA lane instead of the conventional one. Sales price limits can still apply depending on program pairing — verify at phfa.org.
Q3. Can repeat buyers use PHFA?
Yes for Keystone Home Loan — it never had a first-time requirement, just the income and price caps. This is the anti-pattern among state agencies: most reserve below-market rates for first-timers only. Pennsylvania lets move-up buyers in if the income fits.See PHFA program options →
Q4. Does PHFA count household income like other agencies?
PHFA counts income of all borrowers AND non-borrower occupants expected to live in the home — same household-counting rule that trips people at CalHFA and IHDA. Run the household total against your county cap, not just your own salary.
Q5. What are PHFA purchase price limits?
County acquisition caps roughly $430K-$510K — Philadelphia metro at the top. Applies to the Keystone Home Loan (conventional). Exceed it and the conventional lane is out regardless of income; the Gov Loan lane follows standard FHA/VA/USDA county loan limits instead.
Q6. What credit score does PHFA require?
640 for Keystone Home Loan (conventional). Keystone Gov pairs follow the backing program — FHA 580+ floor with lender overlays typically at 620-640. DPA programs layer on the same first-mortgage bar.Check FHA eligibility →
Related Pennsylvania & DPA Guides
Over the Cap? The Gov Lane Doesn't Have One.
Pennsylvania's no-income-limit Keystone Gov Loan is the workaround most buyers never hear about. Check which lane fits.