HARRISBURG, Pa., March 15, 2021 /PRNewswire/ -- The Pennsylvania Housing Finance Agency today announces the creation of a $500 grant that can be applied to homebuyers' down payment and closing costs when they are buying a home. This new 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."
PHFA home loans and purchase assistance programs are made available through a network of approved lenders located statewide. 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. A list of participating lenders is available at: https://www.phfa.org/homebuyers/participatinglenders.aspx.
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%. 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.
Homebuyers are encouraged to learn more by reviewing the information about PHFA's purchase assistance programs available on the agency's website at: https://www.phfa.org/homebuyers/. They can also call the agency's Customer Solutions Center weekdays from 8 a.m. until 5 p.m. at 1-855-U-Are-Home (827-3466) to talk with a customer service representative. The phone call is toll-free.
The Pennsylvania Housing Finance Agency works to provide affordable homeownership and rental housing options for older adults, low- and moderate-income families, and people with special housing needs. Through its carefully managed mortgage programs and investments in multifamily housing developments, PHFA also promotes economic development across the state. Since its creation by the legislature in 1972, it has generated more than $15.1 billion of funding for more than 181,660 single-family home mortgage loans, helped fund the construction of 138,000 rental units, distributed more than $121 million to support local housing initiatives, and saved the homes of nearly 50,400 families from foreclosure. PHFA programs and operations are funded primarily by the sale of securities and from fees paid by program users, not by public tax dollars. The agency is governed by a 14-member board.
SOURCE Pennsylvania Housing Finance Agency