PHFA Loans for Roof Replacement: Pennsylvania Homeowner Guide (2025)

If you're staring at a leaking roof and panicking about how to pay for it, you're not alone. Most Pennsylvania homeowners are shocked by the cost of a new roof and the high interest rates attached to most financing options. But what if you could get a 1% loan backed by the state?

In 2024, a client approached us about such a loan for their roof replacement. In all honesty, we had never seen interest rates so low before. The average Annual Percentage Rate (APR) ranges from 6% to 36%, heavily depending on credit score, lending term, and lender (per Acorn Finance). 

Equity Roofing then discovered the low-interest home improvement loans offered through the Pennsylvania Housing Finance Agency (PHFA). We joined the list of approved PHFA contractors and have helped homebuyers and homeowners navigate these affordable loan programs ever since. 

Everyone deserves a safe and functional roof. Yet, as a large financial investment, it isn’t always a realistic option. That’s why we’ve created this (unofficial) PHFA loan guide for roof replacements. 

We'll cover: 

• What Is a PHFA Loan? Could It Save You Thousands on a New Roof?
• How Much Can You Save with a PHFA Loan?
• What's the Catch with State Loans?
• Compare the Top 3 PHFA Loans for Roof Replacement
• How to Apply for a HomeStyle® Renovation Loan
• How to Apply for the Homeowners Energy Efficiency Loan Program (HEELP)
• How to Apply for the Keystone Home Loan Program

By the end of this guide, you'll understand which PHFA loan fits your situation and how to apply so you can finally move forward with your new roof!

What Is a PHFA Loan? Could It Save You Thousands on a New Roof?

PHFA offers several low-interest loan programs for home improvements and repairs. Some loans are designed for homebuyers. Others assist current homeowners in renovating or making their homes more energy-efficient.

Unfortunately, many contractors and homeowners are unaware of PHFA unless they happen to work with an approved lender. It’s common for PA residents to assume that all PHFA programs must be low-income based or difficult to receive. 

While there are specific criteria you must meet to qualify for certain loans, the income requirements are broad. Many PHFA programs have generous income limits (or none), with some allowing household incomes of over $100,000 a year. 

How Much Can You Save with a PHFA Loan?

A 1% PHFA loan could save you over $15,000 compared to traditional financing. Let’s compare a traditional loan vs a PHFA loan on an example roof replacement.   

Potential Savings from a PHFA Loan

• Traditional financing: 6% interest on a $15,000 roof over 30 years = $32,375.73 total cost
• PHFA loan: 1% interest on a $15,000 roof over 30 years = $17,368.53 total cost
• Your savings: $15,007 over the life of the loan—the cost of a second roof! 

What's the Catch with State Loans?

These loan programs are only available to residents of Pennsylvania. Homeowners and homebuyers can check their local state housing agencies to find similar programs in their area! 

PHFA loans require you to use pre-approved contractors. Roofing professionals must meet the following criteria: 

• Licensed contractor in jurisdictions where required
• If the local municipality doesn’t require a license, the contractor must show proof of liability insurance
• Registered with the PA Attorney General’s Office as a Home Improvement Contractor (HIC)
• Use PHFA-compliant contract templates for PHFA loan projects 
• Be prepared to supply bonds and lien waivers for larger PHFA-financed housing or multifamily projects. 

A PHFA loan may not cover the entire cost of your roof replacement. The max loan amount varies depending on the PHFA program, but can often be used in conjunction with other loans. 

Homeowners must also account for processing time when considering a home improvement loan. If all the documentation is in order, you can expect processing to take 1-2 weeks.

Compare the Top 3 PHFA Loans for Roof Replacement

Homeowners can find multiple programs for home improvement and repair through PHFA. For this guide, we will focus specifically on the top three programs for roof replacement and roof repair.

HomeStyle® Renovation program

• Best for: Homeowners and homebuyers
• Rate: Standard conventional mortgage rates (fixed or adjustable). Often offers lower interest compared to HELOCs or personal loans.
• Amount: Up to 75% of the “as-completed” appraised value of the property (capped at $50k for manufactured homes)
• Covers: Roof repair, roof replacement
• Not covered: Luxury amenities such as swimming pools, tennis courts, hot tubs/Jacuzzis, saunas, recreational or entertainment facilities

Homeowners Energy Efficiency Loan Program (HEELP)

• Best for: Homeowners and homebuyers
• Rate: 1% interest
• Amount: $1,000-$10,000
• Covers: Roof replacement
• Not covered: Cosmetic or aesthetic upgrades, non-energy-efficient upgrades, non-permanent Fixtures or appliances, unrelated repairs 

Keystone Home Loan Program

• Best for: Homebuyers 
• Rate: 5.875% interest
• Amount: $1,000-$15,000
• Covers: Roof repairs, roof replacement
• Not covered: Post-purchase repairs or upgrades, cosmetic or lifestyle upgrades, structural repairs, energy efficiency upgrades

How to Apply for a PHFA Roof Loan (Step-by-Step)

Homeowners can follow this step-by-step guide to apply for the following programs: HomeStyle® Renovation, Homeowners Energy Efficiency Loan Program (HEELP), and Keystone Home Loan Program. 

HomeStyle® Renovation

• Income Limits: Gross annual household income must not exceed county-specific limits at 80% of AMI 
• Residency & Property Use: Must be used to purchase or refinance a primary residence; no two‑unit properties allowed
• Credit Score:
  • For DU-approved automated underwriting, the minimum is 620. 
  • For manual underwriting, the minimum is 680

• You must work through a participating lender that offers HomeStyle Renovation products. 
• Ensure they're experienced with this program, as it requires specialized certification and additional paperwork.

• Choose a licensed, insured contractor and prepare a detailed work plan—itemized costs, specs, and timeline—meeting Fannie Mae’s requirements. 
• The lender will vet the contractor’s qualifications.

• Submit your renovation plans and contractor estimates to the lender
• The lender orders an “as-completed” appraisal (ARV) to set the maximum loan limit (up to 75% of ARV) 

• Provide income proof, credit check, and other standard mortgage paperwork.
• Include renovation documentation: plans, contractor contract, cost details, permits, and contingency reserves 

Homeowners Energy Efficiency Loan Program (HEELP)

• Income must be up to about 80% of Area Median Income (AMI)—e.g., approx. $57,150 annually for a one-person household (limits may adjust) 
• No strict minimum credit score, but you must have no recent major debts, foreclosures, or bankruptcies, and no unpaid judgments. 

• Complete PHFA’s HEELP Pre‑Screening Form to verify factors like homeownership, timely mortgage payments, and tax status.

Download the borrower application package from PHFA, which includes a checklist of required items. You’ll need:

• Completed loan application and borrower authorization
• Valid photo ID
• Mortgage statement (if you have one)
• Recent real estate tax bills
• Income documentation (e.g., federal tax return, pay stubs, Social Security or pension letters)
• Homeowners' insurance billing statement
• Energy use information (12 months of utility data)
• “Before” photos of the areas to be upgraded 

• Choose a HEELP‑approved contractor from PHFA’s list. Contractors can also be searched by county on the PHFA website. 
• Prepare a contractor’s work proposal and cost estimate.

Send the complete package within 12 weeks of the contractor's proposal to PHFA’s designated mailing address: 

• PENNSYLVANIA HOUSING FINANCE AGENCY
  |Homeownership Programs Division
  P.O. Box 8029, Harrisburg, PA 17105

Keystone Home Loan Program

You may qualify if you meet all of the following:

• First-time buyer or purchasing in a “Targeted” area/veteran:
• Household income and home price must fit within the PHFA county-specific limits 
• A credit score of at least 660
• Mortgage payments generally ≤ 30% of gross monthly income
• Have at least a 3–5% down payment (depending on loan type)

• Apply through a participating lender

Provide standard documentation to your lender, including:

• Proof of income (W‑2s, pay stubs, tax returns)
• Bank statements and asset info
• Credit report and score
• Details of the property and purchase contract

The lender will submit your application to the chosen loan insurer.

Ready to Replace Your Roof? PHFA Loans Make It Possible

If you've ever delayed a roof replacement because you couldn’t afford it, now you know there’s help through PHFA. These low-interest programs could save you thousands on your roof replacement or repair. 

Equity Roofing has helped Pennsylvania homeowners navigate through PHFA loan applications and quality roof replacements. We’d be honored to help you, too. If you’re ready to stop worrying about financing and start planning your roof upgrade, contact us to schedule a free estimate!