Weichert Financial is pleased to announce the release of the Pennsylvania Housing Finance Agency’s Tax Credit Advance Loan Program (TCA) now available throughout Pennsylvania. TCA provides an interest free loan of up to $6,000 (for newly constructed homes and $5,000 for existing homes, with a minimum loan amount of $500) to use towards down payment and/or closing costs.
TCA Product Highlights:
- 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 down payment 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.
- For underwriting purposes, the lender must include the tax credit advance loan payment in the borrower’s housing to income (front end) ratio. The payment is calculated using the full amount of the advance at the same interest rate as the first mortgage and with a ten year term.
- At closing, the lender is to disburse funds only for the actual amount of credit needed to pay for the minimum required down payment and/or closing costs.
- A second Mortgage and Note/TIL are to be completed at closing. The Mortgage is to be recorded at the same time as the PHFA first mortgage.
Please feel free to contact Laura Weidner with any mortgage questions you may have, here is her contact info: Laura Weidner, Weichert Financial Services Gold Services Manager Cell: (717) 808-3656 eFax: (973) 630-3574 Email: LWeidner@WeichertFinancial.com
Great News for first time buyers who may be short on cash to close, if you want to know how to structure this program into your home purchase, as always, you can call me Direct at 717-371-0557 or at the Office 717-490-8999, email me at Jason@JasonsHomes.com or send me a text message using the tool to the right of this post!
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