PHFA launches program to assist new homebuyers
HARRISBURG — The Pennsylvania Housing Finance Agency has launched a new home purchase assistance loan that is “Forgivable In Ten years,” hence its name K-FIT.
The loan will be used to assist homebuyers with their down payment and closing costs. K-FIT is a forgivable second loan, with 10% forgiven each year over 10 years. As a result, no monthly payment is required.
A K-FIT loan provides 5% of the lesser of the purchase price or appraised value with no maximum dollar amount. For instance, if the price of a home is $215,000, the buyer may receive $10,750 in K-FIT loan assistance to be used toward the transaction.
A borrower applying for a K-FIT loan may not have liquid assets more than $50,000 after deducting the funds to close on the loan.
All borrowers requesting K-FIT funds must have a minimum FICO score of 660 and must complete homebuyer education counseling, which may be completed remotely.
“Experience shows that down payment and closing costs are two of the biggest barriers to homeownership that buyers face,” said PHFA Executive Director and CEO Robin Wiessmann in a release. “For those homebuyers who qualify, our new K-FIT loan eliminates or reduces those hurdles and will help make homeownership achievable for many families.”
To be approved for a K-FIT loan, all borrowers must be eligible for the KHL program and meet the K-FIT loan program eligibility requirements.
Homebuyers wanting more information about the new K-FIT home purchase assistance loan can visit PHFA’s website at: www.phfa.org/programs/assistance.aspx. They also can call the agency’s Customer Solutions Center toll-free at 1-855-U-Are-Home (827-3466. Customer service representatives are available 8 a.m. to 5 p.m. Monday through Friday/ Callers can also leave a message and request a call-back.