Introducing
The New, Improved
Tax Credit
Say good-bye to the old tax credit and hello to the new, improved federal tax credit. It is improved because it lasts longer and is open to more people. What's new is that it's now available in 2 sizes: up to $8,000 for qualified first-time buyers and up to $6,500 for qualified buyers who've owned their current home for 5 years.
Call me and ask how you can take advantage of the tax credit now
and come to the seminar and talk to the experts
(If you have any questions about the Federal Housing Tax Credit for first-time homebuyers please refer to http://www.federalhousingtaxcredit.com/2009/faq.php )
1. What is the Tax Credit Advance Loan Program?
2. Is the TCA loan program a grant?
3. Who is eligible for Tax Credit Advance Loan program?
4. Who is a first time homebuyer?
5. I currently own a home, but my spouse would be a first time homebuyer. Will I be eligible for the tax advance loan?
6. How much does the Tax Credit Advance loan provide?
7. Is there a required minimum downpayment?
8. Can I use the TCA to increase my downpayment beyond 5%?
9. Can I use the TCA loan to pay off credit cards?
10. What are the terms of the TCA loan program?
11. What happens if I do not pay the loan by the deadline?
12. If I am late filing my income taxes for 2009, can I get an extension to repay the TCA loan?
13. What if I am not due any refund from my federal income taxes?
14. Are there income guidelines for this program?
15. What are the property requirements?
16. Can the tax credit advance loan program be used with other assistance programs offered by PHFA?
17. Can the TCA loan program be used where the homebuyer is receiving favorable treatment because of his/her relationship to the seller (non-arms length transactions)?
1. What is the Tax Credit Advance Loan Program?
The Tax Credit Advance Loan Program, or TCA, provides an upfront, interest free loan to eligible borrowers so they can apply their 2009 federal income tax refund to their downpayment and/or closing costs associated with the purchase of their home.
2. Is the TCA loan program a grant?
No, this is loan that must be repaid. If it is paid in full by June 30, 2010, there is no interest and no fees.
3. Who is eligible for the Tax Credit Advance Loan program?
First time homebuyers purchasing their principal residence between January 1, 2009 and November 30, 2009. The loan must be closed between those dates, or in the case of custom construction the home must be occupied by November 30, 2009. Appendix T Sellers Guide June 2009 Page 2 of 3
4. Who is a first time homebuyer?
A first time homebuyer is someone who has not had an ownership interest in their primary residence in the last three years, nor may they have a present interest in any other real estate, except for a business property if the business is that person’s primary source of income.
5. I currently own a home, but my spouse would be a first time homebuyer. Will I be eligible for the tax advance loan?
No, all adult occupants receiving this loan must be a first time homebuyers.
6. How much does the Tax Credit Advance loan provide?
You may receive up to $6,000 for a newly constructed (never occupied) home or up to $5,000 for an existing home, or 10 percent of the purchase price, whichever is less.
7. Is there a minimum downpayment required?
Yes, you must invest at least $1,000 of your own funds for conventional loans. This is not required for loans insured by FHA or guaranteed by USDA/Rural Development (RD) or the Veteran’s Administration (VA).
8. Can I use the TCA to increase my downpayment beyond 5%?
No. However, you can use the loan to cover closing costs associated with the purchase of the home and towards your minimum required downpayment.
9. Can I use the TCA loan to pay off credit cards?
No, this loan can only be used towards downpayment and/or closing costs for the home you intend to purchase.
10. What are the terms of the TCA loan program?
The interest free loan is to be paid back upon receipt of your federal tax refund from the IRS. If the loan is not repaid by June 30, 2010, it will become a ten-year loan with the same interest rate as the first mortgage and with monthly payments beginning August 1, 2010.
11. What happens if I do not pay the loan by the deadline?
You will receive a mortgage statement shortly after June 30, 2010. This statement will be separate from your first mortgage. Monthly payments for the advance loan will begin August 1, 2010. If you pay off the loan early, you will not have to pay a penalty.
12. If I am late filing my income taxes for 2009, can I get an extension to repay the TCA loan?
No, the loan must be repaid regardless of whether you are late filing your income tax return. Appendix T Sellers Guide June 2009 Page 3of 3
13. What if I am not due any refund from my federal income taxes?
The Tax Credit Advance loan is separate from the Federal First Time Home Buyer Tax Credit. You will still owe the TCA on June 30, 2010, even in you don’t get any refund from the federal government.
14. Are there income guidelines for this program?
Yes, you must fall within the lesser of the Federal First Time Home Buyer Tax Credit income guidelines of $75,000 for single filers; $150,000 for married filers or local income and purchase price limits for first time buyer & niche products offered.
15. What are the property requirements?
Eligible properties include single family homes (attached or detached), condos, manufactured homes and two-unit properties located in Pennsylvania.
16. Can the tax credit advance loan program be used with other assistance programs?
No.
17. Can the TCA loan program be used where the homebuyer is receiving favorable treatment because of his/her relationship to the seller (non-arms length transactions)?
No, the TCA can not be used on non-arms length transactions. The buyer can not receive favorable treatment when using the TCA funds for purchase. Only arms length transactions are applicable.
CALL FOR DETAILS OR COME TO OUR NEXT HOMEBUYER SEMINAR SCHEDULED FOR SATURDAY January 23rd AT 11AM!!! PLEASE RESERVE YOUR SPOT ASAP, SEATING IS LIMITED!!!!!!!
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Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania Department of Banking pursuant to the First Mortgage Bankers and Brokers Act and the Secondary Mortgage Loan Act Nos. 11089.001 and 11090.001. Licensed Lender in AR, DE, MD, D.C., GA, ME, MI, WI, IA, IL, VT, OR, FL, WV, RI, KY, NC, ID, MS, NE, WY. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in AL, AK, CO, IN, SC, MO. Exempt Mortgage Lender in MN, OK. WA. Registered Mortgage Lender in TN, LA, TX. Registration with the Financial Institutions Division in New Mexico. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Licensed Mortgage Broker Ohio. Licensed Loan Broker Rhode Island. Kansas Licensed Mortgage Company, License #2001-4254. Licensed by the New Hampshire Banking Department. Weichert Financial Services arranges loans with third-party providers. Equal Housing Lender.
Please reserve your space now. RSVP to Darren at 610-203-0138 or dsamsel@buyersproperties.com .
