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The Pennsylvania Housing Finance Agency created a $500 grant that can be applied to a homebuyers' down payment and closing costs when purchasing a home. The grant is available for loans locked on or after March 15.
"This is our second announcement in March about a new purchase assistance program we've created to help homebuyers," said PHFA executive director and CEO Robin Wiessmann. "Down payment and closing costs are the biggest hurdle many homebuyers face when they purchase a home, and this $500 grant program will help address that challenge."
Earlier this month, the PHFA launched a home purchase assistance loan that is forgivable in 10 years.
PHFA home loans and purchase assistance programs are made available through a network of approved lenders located statewide, according to a press release. These lenders work with homebuyers to find a PHFA loan program that best suits their needs. After their loan closes, it is sold to PHFA, which services it for the life of the loan.
Borrowers who are eligible may receive this grant under PHFA's Preferred home loan program. They must comply with the HFA Preferred program requirements to be eligible for the grant. Maximum financing is not required to receive the grant. It does not require repayment, and it currently is available year-round. This new grant will be offered indefinitely, and its availability can change in the future. Borrowers may also combine a pre-purchase counseling credit of $300 with this offer.
The HFA Preferred program is a conventional loan product that provides funding for eligible homebuyers to purchase or refinance a home up to 97% of the purchase price or appraised value, whichever is less, with a maximum combined loan-to-value of 105%, according to the PHFA. Grant funds may also be used with other PHFA homebuyer programs, including the Keystone Advantage Assistance Loan and the HomeStyle Renovation and Mortgage Credit Certificate programs.