As long as you are a first time homebuyer you qualify for the $8,000 tax credit. The PHFA loan will give you up to $5,000 which is interest free for the first year. When you file your tax return in 2010 you can use the $8,000 tax credit to pay back PHFA. If you don't do this, the money received from PHFA will become an amoritized loan. You can contact me at firstname.lastname@example.org for more information.