Key Takeaways
- Keystone Advantage lends up to 4% of the purchase price or market value, or $6,000, whichever is less, for your down payment and closing costs.
- It is a 0% interest second mortgage repaid monthly over 10 years, so a $6,000 loan works out to $50 a month.
- The Mortgage Reports data: 36.6% of Pennsylvania home buyers who requested mortgage quotes through our site in 2026 described their credit as fair or poor, vs. 35.1% nationwide.
PHFA’s Keystone Advantage Assistance Loan provides up to 4% of the purchase price or market value, capped at $6,000, toward a down payment and closing costs, as of November 2026. It is a 0% interest second loan you repay monthly over 10 years, and it requires a 660 minimum credit score, no more than $50,000 in liquid assets after closing and a PHFA first mortgage, according to the Pennsylvania Housing Finance Agency (PHFA).
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- Keystone Advantage at a glance
- Who qualifies for Keystone Advantage?
- The Mortgage Reports data: How Pennsylvania home buyers rate their credit in 2026
- How much can you get?
- How Keystone Advantage compares to other PHFA assistance
- How to apply for Keystone Advantage
- How we got these numbers
- Keystone Advantage FAQ
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Keystone Advantage at a glance
| Feature | Keystone Advantage terms (as of November 2026) |
| Maximum assistance | Lesser of 4% of purchase price or market value, or $6,000 |
| Uses | Minimum required down payment and/or closing costs only |
| Interest rate | 0% |
| Repayment | Monthly, amortized over 10 years (120 payments) |
| Minimum credit score | 660 for all borrowers |
| Minimum loan | $500 |
| Asset limit | Liquid assets of $50,000 or less after closing funds |
| Required first mortgage | HFA Preferred (Lo MI), Keystone Government loan or Keystone Home loan |
| Combining | Not with other PHFA assistance, except Access Modification and the $500 PHFA Grant |
Because the loan has no interest, your monthly payment is simply the loan amount divided by 120. At the $6,000 maximum, that is $50 a month. A $4,000 loan would be about $33.33 a month. These figures are our own arithmetic, not PHFA quotes.
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Who qualifies for Keystone Advantage?
PHFA sets a short list of rules for the assistance itself. You must also qualify for the PHFA first mortgage you pair it with.
- Credit: Every borrower needs at least a 660 credit score.
- Assets: Liquid assets, such as cash, checking and savings, stocks, bonds and CDs, can’t exceed $50,000 after you set aside your closing funds. Retirement accounts count only if you could withdraw from them without penalty because of age or retirement.
- First mortgage: You must use an HFA Preferred, Keystone Government or Keystone Home loan, and meet that program’s rules, including its loan-to-value and down payment requirements.
- Use of funds: The money can cover only your minimum required down payment and closing costs.
Income, price and first-time buyer rules
Keystone Advantage itself has no separate income or price limit on PHFA’s page. Those limits come from your first mortgage. For the Keystone Home Loan, PHFA caps household income and total acquisition cost by county, and every adult who will live in the home must be a first-time buyer, meaning no ownership of a principal residence in the past three years. That first-time rule doesn’t apply in targeted counties or areas, or to discharged U.S. veterans.
PHFA updated Keystone Home Loan income and purchase price limits for loans locked on or after July 1, 2026, raising most of them and lowering them in Pike County, per its second-quarter 2026 program update. Check the current county figures with a participating lender before you shop.
The Mortgage Reports data: How Pennsylvania home buyers rate their credit in 2026
36.6% of Pennsylvania home buyers who requested mortgage quotes through The Mortgage Reports in 2026 described their credit as fair or poor, compared with 35.1% nationwide. That matters here because most state assistance programs and the loans paired with them set a minimum credit score, so check this program’s requirements above before you apply.
| Self-reported credit | The Mortgage Reports data: Pennsylvania home buyers (2,247 requests) | The Mortgage Reports data: all U.S. home buyers (54,285 requests) |
| Excellent | 14.3% | 15.6% |
| Very good or good | 49.0% | 49.3% |
| Fair | 35.4% | 34.2% |
| Poor | 1.2% | 0.9% |
Source: The Mortgage Reports analysis of 2,247 home purchase quote requests submitted through our online mortgage form from Jan. 1 to Nov. 9, 2026. Credit tiers are self-reported; the form offers Excellent, Very good, Good, Fair and Poor, and Very good and Good are counted together. States are assigned by ZIP code. These are people who used our form, not a sample of all buyers.
How much can you get?
Your amount is the smallest of three numbers: 4% of the purchase price or market value, $6,000, or what you actually need for your minimum down payment and closing costs. Because 4% of $150,000 is $6,000, buyers above that price will usually hit the $6,000 cap. On a $120,000 home, 4% is $4,800.
PHFA allows a higher amount, up to $8,000, for employees of participating Employer Assisted Housing (EAH) employers. Other borrowers are limited to the standard amount.
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How Keystone Advantage compares to other PHFA assistance
PHFA offers several down payment and closing cost programs. You generally can’t stack them with Keystone Advantage, so it helps to compare before you choose.
| Program | Amount | Terms | Key condition |
| Keystone Advantage | Lesser of 4% or $6,000 | 0%, repaid monthly over 10 years | 660 score; HFA Preferred, Keystone Government or Keystone Home |
| K-FIT | 5% of the lesser of price or appraised value | Forgiven 10% a year over 10 years | Keystone Home loan only; 660 score |
| K-DATE | 8% for loans up to $150,000 (subject to availability); 5% above | 0%, no payments; due on sale, refinance or payoff; 30-year term | 660 score |
| Access DPA | Up to $15,000 | No interest | Must also use Access Home Modification; income at or below 80% of statewide median |
| PHFA Grant | $500 | No repayment | HFA Preferred only; can be combined with Keystone Advantage |
Keystone Advantage is the option you pay back steadily, which means no balance is due when you sell. K-FIT can be forgiven if you stay, and K-DATE defers the whole balance until you sell, refinance or pay off the first mortgage. Which fits depends on your price, budget and how long you plan to stay.
How to apply for Keystone Advantage
You don’t apply to PHFA directly. You apply through a PHFA participating lender, which handles the first mortgage and the assistance together. PHFA also lists approved homebuyer education and counseling providers who can help you decide which program fits.
- Check your credit score and assets against the 660 and $50,000 limits.
- Contact a PHFA participating lender and ask which first mortgage (HFA Preferred, Keystone Government or Keystone Home) you qualify for.
- Confirm the county income and price limits that apply to your loan lock date.
- Plan your monthly budget to include the 10-year assistance payment.
PHFA’s customer service line is 1.855.827.3466. For more statewide and local options, see our guide to Pennsylvania first-time home buyer programs and grants. Mortgage rates on PHFA loans vary by lender and depend on your credit, down payment and property.
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How we got these numbers
We took Keystone Advantage terms from PHFA’s program page and its assistance overview, Keystone Home Loan rules from PHFA’s purchase program page, and limit changes from PHFA’s June 29, 2026 quarterly program update, all checked Nov. 10, 2026. Monthly payment and price examples are our own arithmetic.
Keystone Advantage FAQ
Sources: PHFA, Keystone Advantage Assistance Loan; PHFA, Down Payment and Closing Cost Assistance; PHFA, Keystone Home Loan; PHFA, Quarterly Program Update, 2nd Quarter 2026.
