Downpayment and Closing Cost Assistance
A new downpayment and closing cost assistance program was unveiled by the PA Housing Finance Agency (PHFA).
The Keystone Advantage Assistance Loan (KAAL) will provide an amortized subordinate loan of up to 2 percent of the sales price (maximum of $4,000) to qualified borrowers obtaining a PHFA first mortgage. This program will replace the agency’s Keystone Assistance and Keystone Government Assistance Loan programs.
“The Keystone Advantage Assistance Loan will allow qualified homebuyers to borrow a portion of the funds needed to cover their downpayment requirement and/or closing costs associated with the purchase of their home,” according to the PHFA homeownership programs director. “This loan will carry the same fixed interest rate as the first mortgage but a term of 10 years. And, there’s no prepayment penalty for paying off the Advantage loan early.”