Keystone Forgivable in Ten Years Loan Program (K-fit)

Money in the skyUsed with Keystone Home Loan, 5% of appraised value or sales price, whichever is less

For qualified homebuyers, the Keystone Forgivable in Ten Years Loan Program (K-FIT) assists with the down payment and closing expenses.

Eligible borrowers may receive five percent (5%) of the lower purchase price or assessed value, with no maximum cash restriction. The K-FIT loan is repaid annually at a rate of ten percent (10%) over ten years.

The Keystone Forgivable in Ten Years Loan Program (K-FIT) is used in conjunction with the Keystone Home loan.

Eligibility Requirements

The following requirements must be met for buyers to qualify for the Keystone Forgivable in Ten Years Loan Program (K-FIT): Buyers must meet the requirements of the applicable PHFA first mortgage program. In addition, buyers must meet the needs associated with the Keystone Forgivable in Ten Years Loan Program.

Credit Score

For all prospective borrowers, a credit score of 660 or above is required for participation in the K-FIT program.

Maximum Assistance Amount

The lesser of the home's purchase price or appraised value will determine the maximum amount of help qualifying homebuyers can receive.

Minimum Assistance Amount

Assistance may only be used to cover closing fees and the minimum needed down payment. $500 is the minimum loan amount.

Loan Types

You may use the K-FIT lending program for conventional, FHA, VA, or RD loans. The loan to value (LTV), down payment requirements, and any other applicable FHA, VA, or USDA loan underwriting guidelines apply.

Asset Limitation

After subtracting the money required to meet the settlement costs, the asset limit for liquid funds cannot exceed $50,000. This includes cash and money in savings and checking accounts, as well as in stocks, bonds, CDs, and other similar liquid assets.

Retirement savings from 401(k), IRA, and pension plans will only be considered if the borrower satisfies the age criteria, is retired, and may withdraw the money without incurring a penalty.

Except for the Access Modification Loan Program, no other PHFA aid program may be paired with the K-FIT Loan Program.


Nice split entry homeThe buyer of a house that costs $215,000 is eligible for a K-FIT loan for $10,750 to put toward the purchase of the property.

There is no upper limit on the amount of money that may be borrowed using a K-FIT loan; nevertheless, the amount of money that can be borrowed is capped at five percent of the home's purchase price or its assessed value, whichever is lower.

Quick Recap

  1. All borrowers must have a middle credit score of 660 or greater.
  2. No interest on the 2nd loan
  3. Ties in with the Keystone Home Loan only
  4. The minimum loan amount is $500.
  5. The loan amount is 5% of the sales price or appraised value, whichever is less.
  6. Asset limits


In conclusion, the Keystone Forgivable in Ten Years Loan Program (K-fit), created by the Pennsylvania Housing Finance Agency (PHFA), is an excellent opportunity for those looking to purchase a home.

This program offers qualified applicants a forgivable, 10-year loan that covers some of the costs associated with home ownership, such as closing costs, points, and other items. Additionally, K-fit also features a zero interest rate.

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