Here’s How Realtors® Can Help First-Time Buyers Finance

The Pennsylvania Housing Finance Agency works with Realtors® to help first-time homebuyers explore affordable financing opportunities. About 95% of PHFA’s business is with first-time buyers, and they offer financing, down payment and closing cost resources that are below market interest rates.

“Our whole platform at PHFA is to provide mortgages and financing options to first-time homebuyers,” says PHFA Director of Homeownership Coleen Baumert. “It’s very important for Realtors® to be aware of available competitive financing options.”

With PHFA, buyers need the lesser of 1% or $1,000 of their own funds for the transaction, and PHFA provides up to 95-97% financing for conventional loans. Buyers must put 3-5% down, which can come from the down payment and closing cost assistance offered by the Agency.

PHFA’s Keystone Forgivable in Ten Years loan program is available for qualified homebuyers to provide assistance towards downpayment and/or closing costs. Eligible borrowers may receive 5% of the lesser of the purchase price or appraised value with no maximum dollar limit. The loan is forgiven annually over 10 years for a rate of 10% per year. Unlike K-FIT, other downpayment and closing cost assistance programs tend to have a cap that many first-time homebuyers may exceed.

“It’s important for a Realtor® to know the options available so they can refer their clients appropriately,” Baumert adds, highlighting the important role that Realtors® play in guiding first-time buyers through each step of the homebuying process.

PHFA also works with Realtors® by teaching classes at the Greater Harrisburg Association of Realtors®, setting up informational sessions and connecting them with approved participating lenders and approved counseling agencies they can partner with.

To learn more about PHFA and the financing options they offer first-time homebuyers, visit their website, or view PHFA resources for Realtors®.