First-Time Buyer Requirements for Buying a House in Pennsylvania
Buying your first home in Pennsylvania can be an exciting and rewarding process. Like many states, Pennsylvania offers qualified first-time home buyers home loans at low interest rates as well as potential help with the down payment or closing costs through the Pennsylvania Housing Finance Authority. As with all government-administered programs, a first-time buyer must meet certain eligibility criteria to receive the benefits available through the PHFA.
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Previous Home Ownership
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All adults planning to live in the home for the 12 months following the closing on the home should not have owned (had title to) his principal residence within the preceding three years. Although an applicant who is not a first-time buyer may be able to qualify for the PHFA program if purchasing a home in certain target areas, if you are applying as a first-time buyer you must meet the appropriate criteria.
Income Limits
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The combined income of all adults over the age of 18 that intend to live in the home for the 12 months following the purchase must not exceed the current income limits. Current income limits can be found on the PHFA website or by contacting the PHFA directly by calling 800-346-3597. Additionally, for some programs you may not have combined assets that exceed the current asset limit ($5,000 as of 2010) after deducting down payment and closing costs.
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Purchase Price Limit
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You must chose a home that does not exceed the maximum purchase price allowed under the loan programs offered by PHFA. The loan programs offered by PHFA only apply to homes with an acquisition price below current limits. The current purchase price limits can be found on the PHFA website or by contacting the PHFA by calling 800-346-3597.
Credit and Down Payment
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An acceptable credit score is required to qualify for a loan. Funds for the down payment, closing costs or other expenses may also be necessary. United States federal law entitles each person to a free credit report once a year through AnnualCreditReport.com. While some of the programs offered through the PHFA may provide assistance with the down payment, closing costs or other expenses, you may not qualify for that assistance. If you do not receive help for those expenses, you will be required to pay them yourself. The total funds required will vary depending on factors such as the purchase price of the home, your credit score and the assistance you receive.
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