Pennsylvania homebuyers can once again benefit from additional funds being made available by the PA Housing Finance Agency (PHFA). The Tax Credit Advance Loan Program (TCA) allows loans of up to $6,000 for first-time homebuyers and homebuyers who want to upgrade. 2010 Homebuyers will get a zero percent interest loan if they repay the loan by June 2011.
TCA Eligibility highlights:
• Available to buyers getting a PHFA first mortgage and who close on their loans by June 30, 2010 (and entered into a sales contract by April 30, 2010).
• First-time homebuyers are eligible for the lesser of 10% of the purchase price OR $6,000 for newly constructed homes, $5,000 for existing homes
• Non first-time homebuyers are eligible for the lesser of 10% of the purchase price OR $4,000 for newly constructed homes, $3,000 for existing homes
• For first time homebuyers, all occupants may not have had an ownership interest in their primary residence in the last three years, nor may they have a present interest in any other real estate, except for a business property if the business is that person's primary source of income.
• TCA's minimum loan amount is $500.
• Through TCA, PHFA will make a zero percent (interest free) loan to the homebuyer at the time of closing.
• TCA cannot be combined with PHFA closing cost and downpayment assistance programs (Keystone Assistance Loan, HOMEstead, or Access Downpayment and Closing Cost Assistance Programs).
• The homebuyer is responsible for claiming the Federal Tax Credit when filing federal income taxes for 2009 or 2010 and for using their refund to repay the advance to PHFA.
• TCA is a soft second loan with no interest if it is repaid in full by the following deadlines (regardless of the borrower's tax liability, when the borrower's taxes are filed, or whether the borrower seeks an extension for filing).
• Loans closed in 2009 are due to be paid back to PHFA by June 30, 2010, If the advance is not repaid by June 30, 2010, the loan will immediately begin to amortize over a 10 year period at the same interest rate as the first mortgage. This pertains to both first-time and non first-time homebuyers.
• Loans closed in 2010 are due to be paid back to PHFA by June 30, 2011.
For extensive details go to the Tax Credit Advance Loan Program link above.