K-FIT: Unlocking Homeownership
The Keystone Forgivable in Ten Years Loan Program (K-FIT) is a program tailored for eligible Pennsylvania homebuyers, offering a second mortgage loan to supplement the financial aspects of homeownership. Through K-FIT, qualified borrowers can access assistance equivalent to five percent (5%) of the lesser of the purchase price or appraised value. The remarkable aspect is that there’s no maximum dollar limit for down payment and closing cost assistance.
How does K-Fit work?
The K-FIT loan operates on a unique forgiveness schedule, spreading forgiveness over ten years. Annually, the loan forgives at a rate of ten percent (10%) per year. This means that if you remain in your home for the full ten-year period, your K-FIT loan is entirely forgiven, providing a substantial financial benefit to homeowners.
Some program requirements include: Borrowers must meet qualifying requirements of PHFA first mortgage program. Borrowers must have a minimum FICO score of 660. Minimum loan amount is $500. Funds must be used toward downpayment and/or closing costs. Homebuyer education must be completed through one of PHFA’s approved counseling agencies.