It’s time to give the Pennsylvania Housing Finance Agency (PHFA) a second look.
As a member of PHFA’s Board of Directors, I’ve seen how PHFA has adjusted to the ever-changing real estate market and worked to provide new lending options to a range of clients. Their programs aren’t just for first-time homebuyers – they are for move-up buyers, refinancing homeowners, and seniors who want to downsize. And they offer a viable option for people who may not be able to get financing through traditional means.
As Realtors®, we can encourage our homebuyers to learn more about PHFA’s programs to see if they might be eligible. PHFA has hundreds of success stories. One of my favorites is about Holly Petro, who suffered a devastating car accident that left her paralyzed, but Holly was determined to purchase her own home and be independent. Her previous employer had held her job, so she was employed, but she wasn’t sure about her housing options. She began exploring and found a builder who could customize a townhome for her. Her financing solution was provided by PHFA by way of a PHFA-approved participating lender – she obtained a 30-year, fixed-rate mortgage loan with a highly attractive interest rate. So, she could buy that townhome without worrying about whether her paycheck would cover all of her monthly bills. PHFA made homeownership affordable for Holly
A great new PHFA program is called the Mortgage Credit Certificate (MCC), which allows homebuyers to claim a tax credit for 50 percent of the mortgage interest paid per year, capped at $2,000 annually. It’s a dollar-for-dollar reduction against their federal tax liability, thus reducing the amount they owe in federal taxes by up to $2,000 a year. Over a 30-year mortgage period, this represents significant savings. Your clients may not be aware of this program, but you can help them determine if they’re eligible.
Visit the PHFA website to learn more about the No-MI (Mortgage Insurance) and Lo-MI conventional loan products, the Keystone Home Loan Program, the Keystone Government Loan Program, the Keystone Advantage Assistance Loan Program, the HOMEstead Program, and the Access Modification Loan. Also on the PHFA website you can find lenders in your area that are PHFA-approved participating lenders.