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.


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RealEstateRama staff editor manage to selection and verify the real estate news for State of Pennsylvania.


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