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The maximum loan amount is $6,000 for new construction and $5,000 for existing homes, with a minimum loan amount of $500. If the TCA is repaid by June 30, 2010, the borrower pays no interest for the loan.
To help consumers and REALTORS® find a lender who is participating in the TCA program, PHFA has created a chart on its web site. The map allows people to click on each county to access a local list of lenders and shows a chart of which lenders participate in which PHFA loan programs.
“The chart shows our approved lenders and the types of PHFA loans they offer along with whether they are offering our TCA program,” Newton explains. “It simplifies the process for the consumer.”
Other requirements for the Tax Credit Advance Loan include:
Must be a first-time homebuyer
Must fall within the federal tax credit income guidelines
Must be obtaining a PHFA first mortgage
Cannot be combined with other PHFA down payment and closing cost assistance programs
Newton says the Federal Housing Administration’s (FHA) definition of “secured” and “unsecured” loans has caused some confusion as to how the tax credit may be used.
“As a government body, we’re approved to monetize the tax credit as a secured loan, and the borrower may use our funds toward their minimum required down payment,” Newton explains. PHFA is financing the tax credit monetization with $5 million of its own funding so loan availability is limited.
PHFA, which began offering its flagship Keystone Home Loan in 1982, recently introduced a new program called the Keystone Government Loan. The loan is only for FHA, Veterans Administration (VA) and Rural Development (RD) loans. Homebuyer eligibility is determined by the guidelines of the respective federal agency (FHA, RD or VA). There are no income limits or first-time buyer requirements.
For more information about PHFA’s programs, visit, phfa.org or call 1-800-822-1174. |