How to Complete and Submit PHFA Form 51: Pre-Closing Package Checklist

PHFA Form 51 is the pre-closing package checklist that Pennsylvania Housing Finance Agency lenders use to assemble and submit a borrower’s loan file for state review before closing. Every document the agency needs sits on the checklist, and the lender marks each line as included, not applicable, or previously submitted. The completed package goes to PHFA digitally through VirPack, and the agency generally returns a decision within two to three business days.

What Form 51 Is and Who Uses It

Form 51 is a cover sheet and index, not a form the borrower fills out. The lender uses it to organize the loan file in a fixed order so PHFA underwriters can confirm the loan meets program requirements before the closing occurs. The loan must already be locked with PHFA before the package can be submitted; if it isn’t, the loan won’t appear in VirPack’s list of available submissions.¹

Documents the Checklist Requires

Income and Employment

The checklist calls for a Verification of Employment, either a full written VOE from the employer or a verbal verification paired with current pay stubs showing year-to-date earnings and W-2 forms from the previous two years. Self-employed borrowers submit two years of federal tax returns with all schedules plus a completed Fannie Mae Form 1084 cash flow analysis.² If any borrower receives child support or spousal support, the divorce decree or support agreement belongs in the file.

A signed IRS Form 4506-C is also required so the lender can pull tax transcripts through the IRS Income Verification Express Service.³ If transcripts are missing when the package is submitted, PHFA will add a purchase condition, and the loan cannot be purchased until those transcripts arrive.⁴

Assets

Include a Verification of Deposit or the two most recent full monthly bank statements for every account the borrower disclosed on the loan application.² Every page of each statement must be included, blank pages and all, because underwriters check for large unexplained deposits. Gift funds require a separate Gift Affidavit. When a PHFA assistance loan or an outside subordinate mortgage supplies down payment or closing cost funds, the commitment letter goes into the verification-of-funds section.⁵

Property

Form 51 requires the executed agreement of sale or construction contract and the applicable appraisal report.² FHA transactions need the FHA/VA amendatory language in the agreement of sale and, when applicable, the FHA Real Estate Certification. The appraisal has its own VirPack rule: upload it as a separate file, not bundled with the rest of the package.¹ Condominiums require additional approval documentation: an unexpired CPM certification for full-review projects, or a signed warranty statement for limited-review projects.

Loan Insurance or Guarantee

Every PHFA loan must be insured or guaranteed, and the proof depends on the program:

FHA: a signed FHA Loan Underwriting and Transmittal Summary (HUD 92900-LT) or a Firm Commitment.
VA: a signed Loan Analysis (VA 26-6393) and the Veteran’s Certificate of Eligibility.
USDA Rural Development: a signed Conditional Commitment or RD Form 3555-21.
HFA Preferred (conventional): a Private Mortgage Insurance Certificate.

The Automated Underwriting Findings Report belongs in every package, and conventional and RD loans also need the Fannie Mae Transmittal Summary (Form 1008).² For FHA, VA, and RD loans, the lender must document that all parties to the transaction were searched against the Limited Denial of Participation and GSA exclusion lists.

Homebuyer Education

A Certificate of Completion for homebuyer education should be in the package. If it isn’t, PHFA flags it as a purchase condition that must be cleared before funding.⁵ Borrowers with a credit score at or above 680 can complete the course online or in person at a PHFA-approved counseling agency; those below 680 must attend in person.⁶ The Fannie Mae Supplemental Consumer Information Form (Form 1103) is also required in every package regardless of loan type.

PHFA-Specific Forms the Borrower Signs

Form 3: Mortgagor’s Affidavit

PHFA Form 3 is the Mortgagor’s Affidavit of Eligibility and Acknowledgment of Program Requirements. By signing it, the borrower certifies that the property is a single-family residence in Pennsylvania and that they will occupy it as a principal residence within 60 days of closing. The borrower also affirms that neither they nor anyone who intends to live in the home within 12 months of closing has held an ownership interest in a principal residence during the previous three years.⁷ Discharged veterans and buyers in a PHFA-designated target county or target census tract are exempt from the three-year rule.⁸ Form 3 must be notarized and reaffirmed with notarized signatures at closing.⁹

Form 4: Recapture Tax Notice

PHFA Form 4 warns the borrower about a potential federal tax liability if they sell the home within nine years of closing. The obligation comes from Section 143(m) of the Internal Revenue Code, which applies to mortgages financed through tax-exempt mortgage revenue bonds.¹⁰ The borrower’s signature on Form 4 confirms they understand this exposure before closing.¹¹

Assistance Program Forms

Most PHFA borrowers pair the first mortgage with one of the agency’s down payment and closing cost assistance programs, and each adds its own forms to the pre-closing package. Each program has a dedicated subordinate note form (Form 54 with variants 54ADV, 54KFIT, 54KDATE, and 54a), a subordinate mortgage form (Form 55 with variants), and program-specific loan estimate and closing disclosure forms.¹¹ Matching the correct set of forms to the specific assistance program is one of the easier things to get wrong, so check the file against Form 5, the Affordable Housing Assistance Program Checklist, before uploading. The Keystone Advantage Assistance Loan cannot be combined with any other PHFA assistance program except the Access Modification Loan.¹²

Submitting the Package Through VirPack

Lenders submit the pre-closing package through VirPack, accessible from the PipeLine Plus lender portal at lenders.phfa.org.⁹ The upload steps:

Select “VirPack” from the left panel menu.
Choose “Submit New Pre-Closing Package to PHFA” from the group dropdown.
Select the loan, then click “Documents” to begin uploading.
Upload the pre-closing package as one document type, then upload the appraisal separately.
Select the proper document type for each upload and click “Process.”¹

Scan documents in the order listed on Form 51.¹³ A few technical rules trip people up. File names cannot contain spaces or special characters and must be 75 characters or shorter. Locked or password-protected PDFs will be rejected because PHFA staff cannot open them. If you upload a file but don’t click “Process” within 24 hours, VirPack automatically deletes it.¹

Complete packages uploaded after 3:00 p.m. are marked as received the next business day. Incomplete packages are not marked received at all until every required document has been uploaded.¹³

Review Timing and Outcomes

PHFA generally completes its review within two to three business days and advises lenders to allow up to five.⁵ The Pre-Closing Eligibility Notification returns one of three results:

Eligible. The loan qualifies for sale to PHFA. The notice lists any remaining purchase conditions the lender must satisfy later with the post-closing package.
Ineligible. PHFA could not finish the review because documents are missing or information is incomplete. The notice identifies what’s needed, and review resumes once the lender re-submits.
Denied. The loan is not eligible for sale to PHFA under its underwriting or program compliance rules. A denial at this stage means the loan cannot close under the PHFA program as submitted.⁵

Read the notification carefully and confirm all conditions are addressed before scheduling the closing. Omitting required documentation or leaving conditions uncleared will make the loan ineligible for purchase even if the closing itself goes smoothly.⁴

Form 51 covers only the pre-closing stage. After the loan closes, the lender submits a separate post-closing purchase package using Form 58, which PHFA must receive within the lock window to fund the loan on time.¹⁴

1
Pennsylvania Housing Finance Agency. Appendix E – VirPack Instructions – PHFA
2
Pennsylvania Housing Finance Agency. PHFA Form 51 – Pre-Closing Package Checklist and Cover Sheet
3
Internal Revenue Service. Income Verification Express Service
4
Pennsylvania Housing Finance Agency. Quarterly Programs Update – PHFA
5
Pennsylvania Housing Finance Agency. Seller’s Guide – PHFA
6
PA Housing Finance Agency. Homebuyer Counseling and Education
7
Pennsylvania Housing Finance Agency. Mortgagor’s Affidavit of Eligibility and Acknowledgment of Program Requirements for Keystone Home Loan and Homestead
8
Pennsylvania Housing Finance Agency. Keystone Home Loan Program – PHFA
9
Pennsylvania Housing Finance Agency. Pennsylvania Housing Finance Agency Forms Overview
10
Office of the Law Revision Counsel. 26 USC 143 – Mortgage Revenue Bonds
11
Pennsylvania Housing Finance Agency. Lenders and Brokers Resources and Forms – PHFA
12
Pennsylvania Housing Finance Agency. Keystone Advantage Assistance Loan for Home Purchase – PHFA
13
Pennsylvania Housing Finance Agency. Pre-Closing Package Checklist and Cover Sheet
14
Pennsylvania Housing Finance Agency. Purchase Submission Checklist