HARRISBURG, PA — Pennsylvania Housing Finance Agency launched a new home purchase assistance program offering 0% interest loans with no monthly payments to help eligible homebuyers cover down payment and closing costs.
The program, called Keystone – Due At Time of Expiration, or K-DATE, provides deferred loans that do not require repayment until the home is sold, refinanced, or the primary mortgage is paid in full. The loans may remain deferred for up to 30 years.
Pennsylvania Housing Finance Agency said the program is intended to help low- and moderate-income renters transition into homeownership.
“We are excited to launch this new loan program that will help make homeownership more attainable for Pennsylvanians,” said Robin Wiessmann, executive director and chief executive officer of the agency. “K-DATE will help buyers with one of the biggest obstacles to homeownership – the money needed to cover the down payment and closing costs.”
Under the program guidelines, borrowers purchasing homes valued at $150,000 or less may qualify for assistance equal to 8% of the purchase price or appraised value, whichever is lower.
For homes valued at $150,001 or more, eligible borrowers may receive assistance equal to 5% of the purchase price or appraised value, whichever is lower.
The agency said K-DATE loans may only be paired with PHFA’s Keystone Home Loan or K-Flex loan programs. Eligible financing options include conventional, Federal Housing Administration, Rural Development, and Veterans Affairs loans.
Borrowers must have a minimum FICO score of 660 and complete PHFA-approved homebuyer education counseling, which the agency said is offered at no cost.
Additional information about the K-DATE program is available at PHFA Homebuyer Assistance Programs or by calling 855-827-3466.
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