Single First Time Home Buyer Applying For PHFA Tax Credit Advance
First Time Home buyers in Pennsylvania who plan to use the Keystone Home Loan and the Keystone Home Loan Plus Programs for a home purchase may now qualify for the PHFA Tax Credit Advance Loan Program. The PA Tax Credit Loan Program is designed to let PA First Time Buyers to take advantage of the Federal First-Time Homebuyer Tax Credit in a way that let’s them borrow money against the $8000 Tax Credit they are due. The PHFA Tax Credit Advance Loan Program is offered by the Pennsylvania Housing Finance Agency.
Why PHFA Authorized The Tax Credit Advance Loan Program?
Only first-time home buyers can qualify for this federal tax credit. These first-time buyers are eligible for an $8000 tax credit. This tax credit is paid through the 2010 tax return if the house was purchased in 2009. This Advanced Loan Program enables buyers earlier accessibility to their tax credit, due to the actions of the PHFA, intending to better serve Pennsylvania home buyers.
This PHFA tax credit advance loan program is not guaranteeing anything, but is intended not to require any loan payments or interest charges until June 2010. This should allow enough time for the home buyer to receive his 2010 tax credit refund and then use the funds to repay this PHFA advance loan before any payments or interest is due
PHFA Tax Credit Advance TCA Loan Program Guidelines
1. The TCA Program only applies to first-time buyers getting a PHFA first mortgage through the Keystone Home Loan and the Keystone Home Loan Plus assistance programs.
2. It can be used through PHFA Access Modification Program and the Purchase Improvement Program, which are special mortgage plans.
3. In actuality, the TCA is a lien against the house which must be paid off when the homeowner sells or refinances.
4. The minimum loan amount is $500, but the TCA can be either 10% of the home’s sales price up to $6000 for a newly built house and a resale house up to an amount of $5000.
5. Those PA homebuyers wanting to take advantage of a TCA loan must be occupants in the acquired home.
6. There’s no interest fee or loan payment due until June 2010. If the TCA is not repaid by that date, then the TCA converts to a 10 year loan and the interest percentage the same as that of the first mortgage.
7. This TCA cannot be used with any of the other programs which offer closing costs and down payment assistance. These include Keystone Assistance Loan, HOMEstead, or the Access Downpayment and Closing Cost Assistance Programs.
8. Time extensions for paying back the TCA by June 2010 are not granted. The interest free and no payment due conditions end at that specified date.
9. The TCA is not allowed in any arrangement when buying a home from a parent or other family member.
There are requirements for income and house sales price which are dependent on the federal tax credit income guidelines or where the PHFA income and purchase price guidelines apply. This choice depends on whichever is more limited or restricted.