First-time homebuyers who purchase their homes before 12/1/09 and who meet income guidelines may qualify for the federal tax credit. Finding a bank that will allow the tax credit to be monetized is a little more difficult. The Pennsylvania Housing Finance Agency's (PHFA) Tax Credit Advance Loan Program (TCA) provides an interest-free loan of up to $6,000 to use toward down payment and/or closing costs. Max Loan amounts are: $6,000 for new construction, $5,000 for exisiting homes, with a minimum loan amount of $500.If the TCA is repaid by 6/30/10, the borrower pays no interest for the loan.

Go to the link below to find a lender who is participating in the TCA program.

Bottomline: if you want to monetize the credit, you must obtain a PHFA first mortgage and cannot be combined with other PHFA downpayment and closing-cost assistance programs.

Good Hunting!

Kim,

The USDA loan is probably for Rural Housing which is address dependent. That means, it depends on the address of the house you are buying if you can get that kind of a loan. FHA is a government backed loan that most mortgage companies offer but it typically requires 3.5% down. In some cases, PFHA will allow a FHA or a Rural Housing loan with 6% seller assist (where you get up to 6% of the cost of the loan as a credit against your settlement costs) and depending on the amount of the remaining closing costs, you can get an advance on the $8,000 tax credit (you cannot get a mortgage and come away from the settlement table with money in your pocket). I don't know the amount you are pre-approved for, but if it is less than $80,000 you will not get the full $8,000 tax rebate - only up to 10% of the cost of the home. As Jennifer stated, it can get a bit confusing. You need a good lender and a good agent to walk you through the various possibilities to see what is the best for your situation. Alot depends on how much cash you have access to. Just remember, the higher the loan, the higher your payments will be. Sometimes it's better to do it that way and sometimes it's better to pay more at settlement. Wells Fargo is a very good mortgage company and I, too, have a lender I like to use for Wells. I don't specialize in Phoenixville, but I am licensed for the area. Whether you use me or not, feel free to call me with questions or visit my website where there is information on the buyer process. My website is http://www.YourRealtor4PA.com and my contact information is there, too.

Hello Kim,

Have you questioned the lenders as to why they are making the different suggestions? If you have little money to put down then you would have no choice but to proceed with an FHA Loan. If you are trying to use the tax credit in advance your ONLY choice is PFHA however this is a very difficult and drawn out process. It is not easy and things must be done in the correct timeframe. I have another client currently going in this direction and I HIGHLY recommend Wells Fargo to do this. You can contact Terri Yetter at 610-970-0940 and she will guide you through each and every step. Be aware that you cannot always utilize the full credit. It is IMPERATIVE, especially because you are doing a specialty loan to utilize a DIRECT LENDER and not a broker.

I'd love you send you listings that are available. I am the Top Agent in Phoenixville. Let me know if I can assist in any way and have a wonderful day.

Jennifer Daywalt, Realtor
Re/Max Results Realty
Top Realtor 2004, 2005, 2006, 2007, 2008
Phoenixville's Home Town Realtor
Author of "Ask The Realtor" in the Saturday Edition of The Phoenix
610-999-7693 Direct Line
610-489-7355 Main Office
Sellinghomesjenn@aol.com