The Pennsylvania Housing Finance Agency (PHFA) has rolled out Keystone – Due At Time of Expiration (K-DATE), a new home purchase assistance loan designed to offer downpayment and closing cost assistance with 0% interest and no monthly payments.
According to the PHFA, K-DATE provides a non-amortizing loan that is deferred for up to 30 years and becomes due and payable when the home is sold, refinanced or the first mortgage is paid in full. As a result, no monthly payment is required.
The maximum amount of assistance to eligible homebuyers will be based upon the lesser of the purchase price or appraised value. For loan amounts less than or equal to $150,000, homebuyers may receive 8% of the lesser of the purchase price or appraised value with no maximum dollar amount.
For loan amounts greater than or equal to $150,001, homeowners may receive 5% of the lesser of the purchase price or appraised value with no maximum dollar amount.
All borrowers requesting K-DATE funds must have a minimum FICO score of 660 and must complete homebuyer education counseling, regardless of their credit score. The new K-FIT purchase assistance loan may only be paired with PHFA’s Keystone Home Loan or K-Flex loan programs. Financing options are available for conventional, Federal Housing Administration, Rural Development and Veterans Affairs loans.
“We are excited to launch this new loan program that will help make homeownership more attainable for Pennsylvanians,” PHFA Executive Director and CEO Robin Wiessmann said. “K-DATE will help buyers with one of the biggest obstacles to homeownership – the money needed to cover the down payment and closing costs.”
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