NEW Homeownership Incentive from PHFA

Glenside, PA - April 3, 2009 - (RealEstateRama) — The Pennsylvania Housing Finance Agency has introduced a new homeownership incentive program, the The Tax Credit Advance Loan (TCA). First-time homebuyers can get an interest-free loan of up to $6,000 to use towards their down payment and/or closing costs.

Here’s how it works:

• The maximum loan amount is $6,000 for newly constructed homes and $5,000 for existing homes, with a minimum loan amount of $500.
• Buyer must invest a minimum of $1,000 of their own funds for conventional loans.
• If TCA is repaid by June 30, 2010, the borrower pays no interest for the loan.
• Any portion of the TCA not repaid by June 30, 2010, becomes a ten year loan at the same interest rate as the PHFA first mortgage; with monthly payments beginning on August 1, 2010.
• You must be a first-time homebuyer.
• You must fall within the Federal First Time Homebuyer Tax Credit income guidelines and PHFA s income and purchase price limits.
• Cannot be combined with other PHFA downpayment and closing cost assistance programs.
• The homebuyer files for the Federal First Time Homebuyer Tax Credit with their 2009 federal income tax return and uses their tax refund to repay the Tax Credit Advance Loan.
• Loan must close prior to December 1, 2009 (and be occupied, in the case of custom construction).
• Funding is limited; therefore, loan availability is on a first come, first served basis.TCA will be available on PHFA loan reservations beginning on Monday, April 6, 2009.

More news: Also effective beginning with reservations made on Monday, April 6th, the amount available per Keystone PLUS Assistance Loan will be increased from $2,000 to $3,000 and up to $1,500 will be available to eligible buyers under the regular Keystone Home Loan.