PHFA Income Limits for 2026: Which Pennsylvania Limit Applies to You

The short version: PHFA has three income limits for 2026, and your first mortgage decides which one applies. The Keystone Home Loan limit is set by county and counts the income of every adult who will live in the home. The Keystone Flex limit is $212,000 statewide, and the HFA Preferred limit is 80% of area median income by county; both count only the borrowers’ income. PHFA’s fourth loan, Keystone Government, has no PHFA income limit at all.

So the same family can be over one PHFA limit and well under another. In Allegheny County, the Keystone Home Loan limit is $110,400 for one or two people and $126,900 for three or more. In Philadelphia, a target county, it’s $147,200 and $171,700.

This page covers PHFA’s home purchase loans. If you rent, PHFA’s rent and income limits for apartments are a different program.

PHFA income limits for 2026 by county

These are the Keystone Home Loan limits, “Effective for reservations on or after 7/1/2026”. They come in two household sizes, 1–2 people and 3 or more, and each county also has a purchase price limit. PHFA’s update memo notes “a slight decrease in the income limits for Pike County”; every other county stayed the same or went up.

Non-target counties run from $106,000 to $122,700 for one or two people. The 39 counties marked “Whole county” are target counties, where every address qualifies for higher limits: $127,200 to $147,200. “Some census tracts” means only specific neighborhoods are targeted, and they keep the county’s limits (see target areas).

For a duplex, Appendix A says the price limit “cannot be greater than the lesser of 10% above the current existing single unit limit, or $806,500.” The PHFA file now online was last re-saved on September 24, 2026, though it still carries the July 1 effective date, so check it against PHFA’s current file before relying on any figure.

Which limit applies to you

The first mortgage picks the limit. PHFA’s lender overview describes the Keystone Home Loan limit as reflecting “max HOUSEHOLD income”, and both the HFA Preferred and Keystone Flex limits as reflecting “max QUALIFYING income for all borrowers”. Keystone Government has no PHFA limit: “There are no income or purchase price limits specific to PHFA; however, the FHA and VA maximum loan limits still apply, as do the RD income limits.”

Keystone Flex always comes with down payment help: PHFA’s overview says “Purchases must be combined with K-FIT or K-DATE”. Most PHFA purchase loans also ask for a minimum contribution from the buyer’s own funds; for HFA Preferred, PHFA’s overview puts it at “The lesser of 1% or $1,000 – purchases only”.

Whose income counts

Keystone Home Loan: everyone 18 and over who will live there. PHFA’s program page says “The gross annual household income for all adults that intend to occupy the home within one year from loan closing does not exceed the Keystone Home Loan Program income limit.” The same page says “All sources of income must be included, except for income received by persons under age 18 and income received by dependants enrolled in a full-time undergraduate program.”

The affidavit you sign for a Keystone Home Loan (PHFA Form 3) goes further. Child support counts, and you must disclose “ANY KNOWN INCREASES IN INCOME TO OCCUR WITHIN THE NEXT YEAR”. A raise that’s already agreed is part of the calculation, not a surprise for later.

Keystone Flex and HFA Preferred: only the borrowers. Appendix F labels the Keystone Flex limit “Income Limit (Qualifying income)”, and Appendix B is headed “MAXIMUM QUALIFYING INCOME LIMITS”, with the note “The qualifying income may not exceed 80% AMI (Area Median Income) per Fannie Mae guidelines.” One caution on HFA Preferred: PHFA’s consumer page for that loan still says “The gross annual household income for all adults that intend to occupy the home within one year from loan closing cannot exceed the limit shown for your county.” PHFA’s lender documents and Fannie Mae’s program rules describe it as the borrowers’ qualifying income. Ask your lender which test they will apply.

Age is the line PHFA draws: income from anyone under 18 isn’t counted. If someone in the home is about to turn 18, or is exactly 18, ask your lender how they’ll treat it. Once you know which limit you fall under, our home affordability calculator shows what that income can realistically carry in a monthly payment.

Target areas: counties raise the limit, census tracts don’t

PHFA uses target areas in two different ways, and the difference changes your limit.

Appendix A lists both groups. Every one of its 175 targeted tract rows carries exactly the same figures as its county:

• Whole target counties (39): Armstrong, Bedford, Blair, Bradford, Cambria, Cameron, Clarion, Clearfield, Clinton, Columbia, Crawford, Fayette, Forest, Fulton, Greene, Huntingdon, Jefferson, Juniata, Lackawanna, Lawrence, Luzerne, Lycoming, Mercer, Mifflin, Montour, Northumberland, Perry, Philadelphia, Potter, Schuylkill, Snyder, Somerset, Sullivan, Susquehanna, Tioga, Venango, Washington, Wayne and Wyoming.
• Counties with targeted census tracts (18), with the number of tracts: Allegheny (68), Beaver (4), Berks (19), Centre (2), Chester (1), Cumberland (1), Dauphin (10), Delaware (9), Erie (20), Franklin (1), Lancaster (6), Lebanon (1), Lehigh (11), McKean (1), Montgomery (2), Northampton (4), Westmoreland (4) and York (11).

A city name isn’t enough to tell. Living in Pittsburgh, Allentown or Erie doesn’t put you in a targeted tract, and seven tracts are targeted only in part, by block group. To check an address, PHFA points to www.ffiec.gov and its “Geocoding/Mapping System”, or your lender can look it up.

This works differently from Wisconsin, where targeted tracts carry higher limits; see our WHEDA income limits guide if you’re comparing.

Down payment help: K-FIT vs K-DATE vs Keystone Advantage

PHFA’s three main down payment programs look similar and work very differently. One is forgiven, one is deferred until you sell or refinance, and one is repaid every month. For how they compare with assistance elsewhere, see our guide to down payment assistance.

K-FIT. PHFA offers “five percent (5%) of the lesser of the purchase price or appraised value with no maximum dollar limit”. The loan is “forgiven on an annual basis over ten years at a rate of ten percent (10%) a year.” If you sell, transfer the home or stop living in it early, “Prorated repayment is required upon the sale or transfer or non-owner occupancy of the property, prior to the full forgiveness period.”

K-DATE. Borrowers with smaller loans get more: “8% of the lesser of the purchase price or appraised value with no maximum dollar limit” when the loan is $150,000 or less, a level PHFA says “is subject to availability”. There are no payments, and it’s due in full later: “The time of expiration occurs upon the sale of the home, refinance of the mortgage or the payoff of the first mortgage.”

Keystone Advantage. Borrowers can receive “up to four percent (4%) of the purchase price or market value or $6,000 (whichever is less)”, repaid monthly at zero interest over ten years.

Example: a $250,000 purchase. Our arithmetic, assuming the home appraises at the price:

• K-FIT: up to $12,500. If you sold after four full years, and forgiveness counts at each full anniversary, about $7,500 would be repaid. PHFA’s documents say only that repayment is prorated.
• K-DATE: up to $12,500 on a loan above $150,000, all of it due when you sell, refinance or pay off the first mortgage.
• Keystone Advantage: 4% would be $10,000, so the $6,000 cap applies, repaid at $50 a month for ten years.

“Up to” matters. For K-FIT and Keystone Advantage, “Assistance can only be used for the minimum required downpayment and/or closing costs”, so you may receive less than the percentage. Both also cap your savings. K-FIT’s rule reads “The asset limitation of liquid funds may not be greater than $50,000 after deducting the funds needed to close on the loan”, and Keystone Advantage sets the same $50,000 limit. That covers cash, checking and savings, stocks, bonds and CDs. Retirement funds count only if you could withdraw them without a penalty.

Smaller programs.

• PHFA Grant: HFA Preferred borrowers “may qualify to receive a PHFA Grant of $500”, which “does not require repayment”.
• Access Downpayment and Closing Cost Assistance: buyers with a disability or a disabled household member who also use PHFA’s Access Home Modification Program may get “up to $15,000 in a no interest downpayment and closing cost assistance loan”. It has its own household income limit, which PHFA’s July update raised to $84,800.

If you’ve read about PHFA’s HOMEstead program elsewhere, PHFA no longer lists it on its assistance page.

First-time buyers, veterans and the recapture tax

Only the Keystone Home Loan has a first-time buyer rule, and it covers everyone who’ll live in the home, not just the borrowers. PHFA defines a first-time buyer as “someone who has not owned (had Title to) their principal residence during the previous three years.” The Form 3 affidavit makes it a household test: “I/we nor anyone who intends to occupy the Residence within 12 months from closing has had an ownership interest in any principal residence during the three years immediately prior to the closing”. A parent who sold their own home last year and is moving in with you would break the rule.

Two exceptions waive it: buying in a target county or a targeted tract, or being “a discharged veteran of the United States Armed Forces.” Keystone Flex, HFA Preferred and Keystone Government have no first-time buyer rule.

Keystone Home Loans are funded with tax-exempt bonds, so a federal recapture tax can apply when you sell. Form 3 also says “PHFA agrees to reimburse you if you ever have to pay a recapture tax in connection with the sale of your home.” Ask your lender to explain how that works before you choose.

Comparing states? We cover the same mechanics for Ohio, Michigan, Virginia and Wisconsin. New to the process? Start with our overview of first-time buyer programs.

Frequently asked questions

What are the PHFA income limits for 2026?

It depends on the loan. Keystone Home Loan limits are set by county, from $106,000 to $147,200 for one or two people and higher for three or more, effective for reservations on or after July 1, 2026. Keystone Flex has one $212,000 limit statewide, and HFA Preferred limits run from $67,600 to $98,160 by county. Keystone Government has no PHFA income limit.

Does an adult who lives with me count toward PHFA’s income limit?

For a Keystone Home Loan, yes. PHFA counts the income of every adult who will live in the home within a year of closing, whether or not they’re on the loan, except dependents in full-time undergraduate study. Keystone Flex and HFA Preferred count only the borrowers’ income, according to PHFA’s lender documents.

Does a targeted census tract raise the PHFA income limit?

No. A targeted tract waives the first-time buyer rule for a Keystone Home Loan, but PHFA lists every tract at its own county’s limits. Only the 39 whole target counties, such as Philadelphia, have higher limits.

Is K-FIT a grant?

No. K-FIT is a second mortgage that PHFA forgives at 10% a year over ten years. If you sell, transfer the home or stop living in it before then, you repay a prorated amount.

Is there an income limit for PHFA’s Keystone Government loan?

PHFA doesn’t set one. FHA and VA loan limits still apply, and USDA Rural Development’s income limits apply to RD loans.

Do I have to be a first-time buyer for a PHFA loan?

Only for a Keystone Home Loan, and then everyone who will live in the home must not have owned a principal residence in the last three years. The rule is waived for veterans and for homes in a target county or targeted census tract. Keystone Flex, HFA Preferred and Keystone Government don’t require it.

What happened to PHFA’s HOMEstead program?

PHFA no longer lists HOMEstead on its assistance page. Its current down payment programs are K-FIT, K-DATE, Keystone Advantage, the $500 PHFA Grant and Access Downpayment and Closing Cost Assistance.

Sources and effective dates

Keystone Home Loan limits, target counties and targeted tracts are from PHFA’s Appendix A (“Effective for reservations on or after 7/1/2026”). HFA Preferred limits are from Appendix B (“Effective for locks made on or after 6/13/2026”), and Keystone Flex limits from Appendix F (“Effective for reservations on or after 7/1/2026”). Program rules are from PHFA’s mortgage programs overview and subordinate loan programs overview, its home purchase and assistance program pages, the June 25, 2026 quarterly programs update and PHFA Form 3 (dated 08/2026). All were read on 25 October 2026.

PHFA revises its limits each year and replaces the files at the same addresses, so a document can change without a new link. Check PHFA’s current files before relying on any figure here, and treat every number as accurate on the date given. We re-check this page each time PHFA updates its limits.

Disclaimer: The Housing Signal is an independent educational publisher. We are not a mortgage broker, lender, or licensed financial advisor, and nothing here is personalized financial or tax advice. Programme terms, income limits, fees and eligibility rules change frequently, and the figures above may not reflect your own circumstances or the most recent PHFA revision. Figures cited are accurate as of the dates given and will change. Consult a licensed professional before making a decision.