That's a stimulus package. Yes, in Pennsylvania, first time home buyers (those not owning a home or investment property within the last three years) can get a portion of their $8,000 tax credit from the economic stimulus package NOW for their purchase. "How?" you ask. Missouri was the first State to come up with the program. They don't call it the "Show Me" State for nothing! In recent weeks, several states have come up with a plan to give potential first-time home owners an opportunity to obtain a "soft second" mortgage that would give them up to $6,000 toward their closing costs. Especially now, who doesn't need help with a deposit? First-timers using the Pennsylvania Housing Finance Agency's
home buyer program can receive a loan to pay down payment and closing costs. The second mortgage would amount to the lesser of 10% of the purchase price or $6,000 for newly constructed homes and $5,000 for existing homes. It is considered a bridge loan. The repayment is when you get your tax rebate check from the IRS. Otherwise, the loan will amortize over ten years. Some income restrictions apply. Individual with an income of up to $75,000 and couples of $150,000 are qualified. The agency's Tax Credit Advance Loan Program requires borrowers to invest at least $1,000 of their own funds. Of course, funding is limited and on a first-come, first-served basis. The good news is that a buyer has up until November 30, 2009 to make the purchase. Here is your Rebate form: IRS Form 5405

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