HARRISBURG, PA — The Pennsylvania Housing Finance Agency raised approximately $478 million through a bond sale last week, securing new financing for mortgages and down payment assistance aimed at low- and moderate-income homebuyers across the state.
The transaction was the second-largest single-family mortgage revenue bond sale in the agency’s history, according to PHFA, and will support its Keystone Home Loan program and related down payment and closing-cost assistance programs, including K-FLEX, K-FIT and K-DATE.
The financing expands PHFA’s capacity to offer mortgage products at competitive rates as prospective buyers contend with housing affordability pressures.
Since 2023, the agency has deployed approximately $5.6 billion in mortgage revenue bond proceeds to support its single-family lending programs, placing it among the nation’s largest programs of its kind.
Between January 1, 2023, and August 31, 2026, PHFA provided more than $4.7 billion in loans to more than 21,810 Pennsylvania homebuyers.
“Bond financing is fundamental to ensure PHFA has the ability to provide affordable mortgage options to Pennsylvanians,” said Robin Wiessmann, the agency’s executive director and chief executive officer.
The agency uses proceeds from tax-exempt mortgage revenue bonds to finance qualifying home loans. Participating lenders originate mortgages that PHFA subsequently purchases using bond proceeds, allowing capital raised from investors to flow into additional homebuyer financing.
The structure also supports down payment and closing-cost assistance, reducing the upfront cash requirements for eligible borrowers.
PHFA repays bondholders using principal and interest payments from mortgage borrowers, along with investment earnings. The agency said repayments are funded exclusively through program revenues rather than tax dollars.
Mortgage revenue bonds are a form of private activity bond issued by state and local government entities to finance eligible housing programs. Investors receive returns established when the bonds are priced.
The latest transaction follows PHFA’s entry into the multifamily housing bond market earlier this year.
During the summer of 2026, the agency priced its inaugural multifamily housing bond series, raising more than $109.6 million to finance affordable rental housing development.
Together, the transactions expand PHFA’s financing capacity across both homeownership and rental housing, using capital markets to support housing programs without relying on tax revenues for bond repayment.
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