HARRISBURG – The Pennsylvania Housing Finance Agency has launched a new loan in support of home purchases “Forgivable in ten years” hence the name K-FIT.
The loan is used to help homebuyers with down payment and closing costs. K-FIT is a forgivable second loan that lends out 10% every year for 10 years. As a result, no monthly payment is required.
A K-FIT loan offers 5% of the lesser of the purchase price or estimated value with no maximum dollar amount. For example, if the price of a home is $ 215,000, the buyer can get $ 10,750 in K-FIT loan assistance that can be used for the transaction.
A borrower applying for a K-FIT loan cannot have cash in excess of $ 50,000 after the funds are deducted to complete the loan.
All borrowers applying for K-FIT funding must have a minimum FICO score of 660 and complete homebuyer training counseling that can be completed remotely.
“Experience shows that down payments and closing costs are two of the biggest homeownership barriers that buyers face.” said Robin Wiessmann, Executive Director and CEO of PHFA, in a press release. “For those homebuyers who qualify, our new K-FIT loan removes or reduces those hurdles and will help make home ownership accessible to many families.”
To be approved for a K-FIT loan, all borrowers must be eligible for the KHL program and meet the eligibility requirements for the K-FIT loan program.
Home buyers wishing to learn more about the new K-FIT home purchase assistance loan can visit PHFA’s website at www.phfa.org/programs/assistance.aspx. You can also call the agency’s Customer Solutions Center toll-free at 1-855-U-Are-Home (827-3466). Customer service representatives are available Monday through Friday from 8 a.m. to 5 p.m. Callers can also leave a message and request a call back.