Unlocking Homeownership: How Pennsylvania’s Forgive in Ten Years Loan Program Can Help You Buy a Home

For many first-time buyers, saving for a down payment and closing costs is the hardest part of buying a home. In Pennsylvania, the Keystone Forgivable in Ten Years Loan Program (K-FIT) from the Pennsylvania Housing Finance Agency (PHFA) provides powerful assistance. This program offers up to 5% of the home’s purchase price toward your upfront costs — and the loan is completely forgiven over ten years.

According to our very own Jackie McCormick, "The PHFA K-FIT program makes homeownership more accessible for people with solid credit and steady income who just need a little help with closing costs. Some buyers are in a position to save up large amounts, and that’s great. But for many, circumstances make that a lot harder. K-FIT helps create a more equitable path so that hard-working people can still achieve homeownership, even if they didn’t start with extra advantages."

At Forti Homes, we believe programs like K-FIT are essential for helping families step into homeownership sooner.

"It’s especially great for single parents, people buying on their own, first-generation buyers, or anyone whose circumstances make it harder to save a big lump sum," she explained.

Here’s what you need to know.

What Is the K-FIT Program?

The PHFA K-FIT program is designed to help first-time homebuyers with upfront costs.

• Buyers can receive up to 5% of the purchase price to use toward a down payment or closing costs.
• The funds are provided as a second loan, but 10% is forgiven each year.

After ten years, the entire loan is forgiven. For example, if you purchase a $250,000 home, you could qualify for up to $12,500 in assistance. As long as you stay in the home for ten years as your primary residence, you’ll never have to repay it.

Who Qualifies for K-FIT?

The Pennsylvania Forgive in Ten Years program has specific requirements:

1. First-Time Homebuyer Requirement
   1. Must not have owned a home in the last three years. (Exceptions apply for qualified veterans and targeted areas.)
2. Primary Residence
   1. The property must be your primary home.
3. Income Limits
   1. Your household income must fall within PHFA’s county-specific limits.
4. Loan Requirements
   1. You must qualify for a PHFA first mortgage program (FHA, VA, USDA, or conventional).
5. Homebuyer Education
   1. Completion of a PHFA-approved homebuyer education course is required.

Why the K-FIT Program Matters

1. Reduces the Upfront Burden
Saving $15,000–$20,000 for upfront costs is unrealistic for many families. K-FIT fills that gap.

2. Encourages Long-Term Stability
Forgiveness over ten years encourages homeowners to put down roots in their communities.

3. Expands Access to Homeownership
This is especially impactful for younger buyers, first-generation homeowners, and families without intergenerational wealth.

4. Works with Other PHFA Programs
When paired with PHFA’s first mortgage options, buyers can benefit from competitive rates and lower monthly costs.

Real-Life Example

Imagine Marjorie and James, a couple buying a $220,000 home in Delaware County:

• They need about $17,000 upfront for a down payment and closing costs.
• K-FIT provides $11,000 in assistance.
• Their out-of-pocket cost drops to just $6,000.

Ten years later, that $11,000 is fully forgiven, allowing them to build equity instead of worrying about repayment.

How to Apply

Here’s how to take advantage of K-FIT down payment assistance:

1. Work with a PHFA-Approved Lender: Forti Homes can connect you to trusted lenders who offer PHFA programs.
2. Apply for a First Mortgage: K-FIT is only available alongside a PHFA mortgage.
3. Complete Homebuyer Education: Required to ensure long-term success.
4. Submit Documentation: Provide income, credit, and employment verification.
5. Close on Your Home: Your assistance will be applied directly to your costs at closing.

Frequently Asked Questions

Q: What if I move before ten years?
A: Any unforgiven balance must be repaid. Example: move after five years, repay 50%.

Q: Can I combine K-FIT with other programs?
A: Yes. K-FIT can often be layered with local grants or employer assistance.

Q: Is K-FIT available everywhere in PA?
A: Yes, but purchase price and income limits vary by county.

Tips for Buyers

✅ Check local income limits before starting your search.
✅ Plan to stay in your home long-term to take full advantage of forgiveness.
✅ Work with experienced agents who understand PHFA programs.
✅ Budget for ongoing costs like maintenance and taxes — K-FIT only covers upfront needs.

Why Programs Like K-FIT Strengthen Communities

Beyond helping individual buyers, the Keystone Forgivable in Ten Years Loan Program boosts entire neighborhoods:

• Families invest in home improvements, stimulating local economies.
• Long-term residency fosters stronger community connections.
• Building equity creates generational wealth.

It’s more than just financial aid — it’s a tool for stability across Pennsylvania.

How Forti Homes Helps You Navigate K-FIT

At Forti Homes, we specialize in guiding clients through the Pennsylvania homebuyer assistance programs that fit their needs. Whether you’re searching in Newtown Square, Broomall, Wayne, or anywhere along the Main Line, our team will:

• Connect you with PHFA-approved lenders.
• Help you understand if K-FIT is right for you.
• Support you through every step of the home-buying process.

If you’ve been putting off your home search because saving for a down payment feels impossible, the PHFA K-FIT program may be your answer. By forgiving assistance over ten years, it helps Pennsylvanians buy homes and stay in them — building stability, wealth, and stronger communities.

At Forti Homes, we’re committed to helping you find not just a house, but a home.

📌 Ready to explore the K-FIT program? Contact the Forti Homes team today to start your journey.