Is saving for a down payment keeping you on the sidelines in York County? With the county’s local assistance ending in 2024, many buyers are looking for a clear path to get into a home. The PHFA Keystone Forgivable in Ten Years (K‑FIT) program can help cover part of your upfront costs so you can focus on the right home. In this guide, you’ll learn how K‑FIT works, who qualifies in York County, and how to apply with confidence. Let’s dive in.
K‑FIT basics: what it is
K‑FIT is a Pennsylvania Housing Finance Agency assistance loan that helps with your required down payment and closing costs. It is paired with an eligible PHFA first mortgage such as Keystone Flex and works with Conventional, FHA, VA, or USDA loans where underwriting allows. You apply through a PHFA participating lender.
According to the official program page, K‑FIT provides up to 5% of the lesser of the purchase price or appraised value. For example, on a $250,000 purchase, that could be up to $12,500 in assistance. There is no monthly payment on the K‑FIT loan while it is in place. Learn more on the PHFA K‑FIT page.
Forgiveness over 10 years
The K‑FIT loan is forgiven at 10% per year over 10 years. If you stay eligible and remain in the home through the full period, it can be fully forgiven. If you sell, refinance, or no longer meet occupancy requirements before the 10 years are up, the remaining unforgiven balance is usually due at that time. Confirm repayment triggers with your lender and the PHFA K‑FIT guidance since the loan documents control.
Eligibility in York County
K‑FIT is not a stand‑alone program. You must qualify for a PHFA first mortgage, such as Keystone Flex. Your income and the purchase price also need to fit PHFA limits for York County.
- Income and price limits vary by county and household size. Check the latest York County limits with a participating lender or on PHFA’s home purchase programs.
- Minimum credit score: PHFA guidance lists a minimum FICO of 660 for K‑FIT when paired with Keystone Flex. See details on the K‑FIT page.
- Borrower contribution: PHFA requires a minimum contribution at closing. For some programs, that is the lesser of $1,000 or 1% of the loan amount. Your lender will confirm what applies to your loan type.
- Asset cap: PHFA applies a $50,000 liquid asset limit after deducting funds needed to close. This can include checking, savings, CDs, and stocks. Retirement accounts may be treated differently. Review your assets with your lender using the K‑FIT guidance.
- Homebuyer education: PHFA requires approved education or counseling for many borrowers. You can find options through PHFA’s counseling and education page.
What K‑FIT covers
K‑FIT funds can be used for the minimum required down payment and eligible closing costs. They are not for repairs or renovations. If you need purchase plus improvement options, your lender may discuss other PHFA products, such as Keystone Flex Purchase & Improvement, found under PHFA’s home purchase programs.
Combining K‑FIT with other assistance
K‑FIT generally cannot be combined with other PHFA assistance programs, with one exception: the ACCESS Home Modification Loan Program. If you are receiving employer or community assistance, tell your lender early. Review PHFA’s assistance programs overview for combinations and rules.
Why K‑FIT matters now in York County
York County discontinued its local York Homebuyer Assistance Program on December 31, 2024. The county directs buyers to statewide options, including PHFA. This makes K‑FIT especially relevant if you need help with upfront costs. See the county’s notice on the York County Planning Commission page.
How to apply: step‑by‑step
Connect with a PHFA participating lender. Your lender will help you choose the right PHFA first mortgage and confirm if you qualify for K‑FIT. Use PHFA’s participating lender search.
Complete required education. If needed, finish PHFA‑approved counseling or education. Start here: PHFA homebuyer education and counseling.
Apply for your PHFA loan and request K‑FIT. Your lender submits the PHFA first mortgage and packages K‑FIT as the assistance second.
Close on your home. K‑FIT will appear as a PHFA second mortgage at closing. The 10‑year forgiveness schedule starts at closing.
Timeline tips
Because K‑FIT is coordinated through PHFA and a participating lender, build in extra time for processing. Ask your lender about current PHFA timelines in York County so you can set realistic expectations with sellers.
Local resources and next steps
- Program details and rules: PHFA K‑FIT and Keystone Flex
- Find a lender: PHFA participating lenders
- Required education: PHFA counseling and education
- Program overview hub: PHFA home purchase programs
- York County update: York County Planning Commission
- Verify specifics: PHFA Customer Solutions Center
Is K‑FIT right for you?
If you are comfortable with your monthly payment but short on cash to close, K‑FIT can be a practical path to homeownership in York County. The key is aligning your budget with PHFA’s first‑mortgage options and county limits, then planning your timeline with a participating lender.
If you want a local, straightforward plan, I’m here to help you map your path to a York County purchase using PHFA programs when they fit. Let’s talk about your budget, your timeline, and the neighborhoods you’re targeting. Connect with Brian McCarty to get started.
FAQs
How much assistance can I get with K‑FIT in York County?
- Up to 5% of the lesser of the purchase price or appraised value, with no stated dollar cap on the 5% amount. See the K‑FIT program page for details.
Do I have to be a first‑time buyer to use K‑FIT?
- Not necessarily. Keystone Flex removed the first‑time buyer requirement in many situations, but PHFA income and purchase price limits still apply by county. Review Keystone Flex for specifics.
When is the K‑FIT loan forgiven, and when would I repay it?
- Forgiveness accrues at 10% per year over 10 years. If you sell, refinance, or no longer meet occupancy rules before full forgiveness, the remaining balance is typically due. Confirm your terms on the K‑FIT page and with your lender.
Can I combine K‑FIT with other down payment programs?
- K‑FIT generally cannot be combined with other PHFA assistance programs, except for the ACCESS Home Modification Loan Program. See PHFA’s assistance programs and discuss any employer or local benefits with your lender.
What if I have savings or gift funds?
- PHFA applies a liquid asset limit of $50,000 after deducting funds needed to close. Asset treatment can vary by account type and loan, so review your situation with your lender using the K‑FIT guidance.
How do I find a PHFA lender in York County?
- Use the statewide PHFA participating lender search and filter for lenders serving York County. They will confirm your eligibility and guide the K‑FIT application.
