PHFA Rates & Programs 2026: Pennsylvania Keystone Loans + Up to $10,000 Down Payment Help
PHFA's Keystone Home Loan offers Pennsylvania first-time buyers 30-year fixed rates from 6.00% — below market — plus the Keystone Advantage DPA loan up to $10,000 at 0% interest. With PA median home prices at $280,000+, combining these programs can save you $15,000–$25,000 at closing. Here's the complete June 2026 guide: income limits by county, program comparisons, and how to apply.
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6.00%
Keystone Rate (June 2026)
Conv 30-yr fixed
$10,000
Max Keystone Advantage
0% interest, 10-yr term
620
Min Credit Score
660+ for best programs
$2,000/yr
MCC Tax Credit
stackable with DPA
PA first-time buyer? Stacking PHFA Keystone + Keystone Advantage DPA + PA MCC tax credit can save you $20,000–$40,000 over 5 years compared to a market-rate mortgage alone. Check eligibility free.
Check My DPA Options →PHFA Programs 2026 — Complete Overview
| Program | Rate (est.) | DPA Available | Min Credit | Loan Type |
|---|---|---|---|---|
| 🏠 FLAGSHIPKeystone Home Loan | 6.00% | Optional (Keystone Advantage) | 660 | Conv/FHA/VA/USDA |
| 💰 DPA LOANKeystone Advantage DPA | N/A (2nd loan) | Up to $10,000 | 660 | 2nd mortgage at 0% |
| ⭐ LOW DOWN PAYMENTHFA Preferred (Fannie Mae) | 6.10% | Optional | 620 | Conventional 3% down |
| 🏛️ GOVT BACKEDKeystone Government Loan | 6.05% | Optional | 620 | FHA/VA/USDA only |
| 🏙️ PHILLY ONLYPhilly First Home (City) | 6.00% | Up to $10,000 grant | 660 | Philadelphia residents only |
| 🔨 RENOVATIONHEELP Loan (Home Improvement) | 1.00% | $1,000–$15,000 | 660 | Renovation loan only |
Rates as of June 2026. Vary by lender and credit profile. Contact a PHFA-approved lender for your personalized quote.
PHFA programs work with FHA (3.5% down), conventional (3% down), VA ($0 down), and USDA ($0 down) loan types. Compare PHFA-approved lender rates to find the lowest combination.
Keystone Advantage Assistance Loan — How It Works
The Keystone Advantage provides up to $10,000 or 4% of the purchase price (whichever is less) as a second mortgage. Key features:
0% Interest Rate
The Keystone Advantage second mortgage charges zero interest — you only repay what you borrowed, spread over 10 years.
Repaid Over 10 Years
Monthly payments of $83–$100/month for $10,000 borrowed. The predictable payment makes budgeting simple.
Used for Down Payment & Closing Costs
Funds can cover your down payment, closing costs, or both — giving you flexibility on how to deploy the assistance.
Must Use PHFA First Mortgage
Keystone Advantage only works with a PHFA Keystone Home Loan or Keystone Government Loan as the first mortgage.
Example: Buying a $250,000 PA Home with PHFA + Keystone Advantage
$250,000
Purchase Price
$8,750
FHA Down Payment (3.5%)
$8,750 (covers all!)
Keystone Advantage DPA
$0 + closing costs
Out-of-Pocket Down
PHFA Income Limits 2026 by County
PHFA income limits vary by county. Philadelphia metro counties (high cost of living) have higher limits. Rural PA counties have lower limits. These limits are for the Keystone Home Loan — Keystone Government Loan has slightly higher limits.
| County | 1-2 Person Limit | 3+ Person Limit | Max Purchase Price |
|---|---|---|---|
| Philadelphia | $121,450 | $139,368 | $726,200 |
| Allegheny (Pittsburgh) | $97,200 | $111,780 | $726,200 |
| Montgomery | $121,450 | $139,368 | $726,200 |
| Bucks | $121,450 | $139,368 | $726,200 |
| Delaware | $121,450 | $139,368 | $726,200 |
| Chester | $121,450 | $139,368 | $726,200 |
| Lancaster | $95,400 | $109,710 | $726,200 |
| York | $93,100 | $107,065 | $726,200 |
| Berks (Reading) | $90,800 | $104,420 | $726,200 |
| Lehigh (Allentown) | $99,500 | $114,425 | $726,200 |
| Northampton (Bethlehem) | $99,500 | $114,425 | $726,200 |
| Erie | $82,300 | $94,645 | $726,200 |
Source: PHFA 2026 program guidelines. Verify exact limits at phfa.org or with a PHFA-approved lender.
Income over the limit? Compare conventional lenders without income caps — or explore PHFA's HFA Preferred program which allows slightly higher income in some counties.
PHFA vs Standard FHA Loan — Which is Better for PA Buyers?
| Feature | PHFA Keystone | Standard FHA Loan |
|---|---|---|
| Min Down Payment | 3% (conv) / 3.5% (FHA) | 3.5% only |
| DPA Available | Yes — Keystone Advantage $10K | City/county programs only |
| Income Limits | Yes — county-based | None |
| Purchase Price Cap | $726,200 (most counties) | $766,550 (FHA limit) |
| Min Credit Score | 620–660 (varies) | 580 (3.5% down) |
| PMI/MIP | None for HFA Preferred | Annual MIP for life (if <10% down) |
| Homebuyer education | Required (first-time) | Not required |
| Best for | Income-qualified PA buyers | Lower credit scores, no income cap |
Bottom line: If your income qualifies, PHFA is almost always better for PA buyers — lower rate, $10K DPA, no MIP on HFA Preferred, plus the MCC tax credit option. The only reason to skip PHFA is if your income exceeds county limits or your credit score is below 620.
Credit score below 660? Boost your score with Spike — gain 20–40 points in 30 days and unlock PHFA's best rate tiers. Or use FHA from 580 FICO as a bridge.
Ready to buy in Pennsylvania with PHFA?
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How to Apply for PHFA — Step by Step
- 1
Complete homebuyer education
Required for Keystone Home Loan and Keystone Advantage. Free or low-cost online courses available through PHFA's approved providers (eHome America, Framework). The certificate must be completed before closing.
- 2
Find a PHFA-approved lender
PHFA programs are only available through participating lenders. Use the lender search at phfa.org or compare approved lenders through our partner network — rates and fees vary by lender.
- 3
Get PHFA pre-approval
Your PHFA lender will verify income against county limits, review your credit (minimum 620 for most programs, 660 for conventional), and confirm your eligibility for Keystone Advantage DPA.
- 4
Find a Pennsylvania home within purchase limits
Maximum purchase price is $726,200 for most PA counties. New construction, existing homes, and condos (with PHFA approval) all qualify. Primary residence only.
- 5
Apply for PA MCC (optional but recommended)
Apply for the Pennsylvania Mortgage Credit Certificate simultaneously — it's a separate form but can save you up to $2,000/year on federal taxes. Your PHFA lender helps with this.
- 6
Close with Keystone Advantage funded
At closing, the Keystone Advantage DPA loan funds as a second mortgage. You receive up to $10K toward your down payment/closing costs, repaid over 10 years at 0% interest.
PHFA FAQ 2026
What is PHFA?
PHFA stands for Pennsylvania Housing Finance Agency. It is Pennsylvania's state housing finance agency, created in 1972 to provide affordable homeownership and rental housing options to low-to-moderate income Pennsylvanians. PHFA offers below-market mortgage rates through a network of approved lenders across Pennsylvania, along with down payment and closing cost assistance programs.
What are current PHFA rates in 2026?
As of June 2026, PHFA Keystone Home Loan rates start at approximately 6.00% for a 30-year fixed conventional loan — typically 0.15–0.30% below comparable market rates. The Keystone Government Loan (FHA/VA) starts around 6.05%. HFA Preferred rates start around 6.10%. Rates change weekly and depend on your credit score and the participating lender.
What is the PHFA Keystone Advantage Assistance Loan?
The Keystone Advantage Assistance Loan provides up to $10,000 (or 4% of the purchase price, whichever is less) as a second mortgage at 0% interest for down payment and closing costs. It is repaid monthly over 10 years with no interest. Unlike some state DPA programs, Keystone Advantage is a loan (not a grant), but the 0% interest makes the effective cost minimal.
Do I need to be a first-time buyer for PHFA?
The Keystone Home Loan requires first-time buyer status (no primary home ownership in past 3 years) except in Target Areas. However, the HFA Preferred program does not have a first-time buyer requirement. All programs require the home to be your primary residence.
What income limits apply for PHFA 2026?
PHFA income limits vary by county and household size. Philadelphia and suburban counties have limits around $121,450 for 1-2 person households. Rural western PA counties have lower limits around $82,000–$95,000. The Keystone Government Loan has slightly higher income limits than the Keystone Home Loan.
Can PHFA be combined with the Mortgage Credit Certificate?
Yes! Pennsylvania offers a Mortgage Credit Certificate (MCC) through PHFA that gives first-time buyers a federal tax credit of up to 50% of annual mortgage interest (capped at $2,000/year). The MCC can be combined with both the Keystone Home Loan and the Keystone Advantage DPA, making the total benefit substantial.
What is the PHFA HEELP loan?
The Home Energy Efficiency Loan Program (HEELP) offers 1% fixed-rate loans of $1,000–$15,000 for energy-related home improvements on an existing PHFA-financed home. This includes new HVAC systems, insulation, windows, and roofing. It's separate from the home purchase programs but very useful for existing PHFA borrowers.
Related Pennsylvania & State Housing Guides
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