A new benefit for Central PA Homebuyers is the $8,000 first-time buyer tax credit for any home purchased on or after January 1, 2009 and before December 1, 2009.  This is available to any person who has not owned a principal residence during the three years prior to purchase.  For married couples, the home ownership history is checked for both people. 

The credit does not need to be repaid and is equal to 10% of the purchase price up to a maximum of $8,000.  This government incentive was created to stimulate and stabilize the housing market, as well as encourage people to participate in the American dream of home ownership. 

One further benefit of the program was announced on May 29, 2009 as a press release on the US Department of Housing and Urban Development (HUD) website.  According to Shaun Donovan, the HUD Secretary, the Federal Housing Administration (FHA) will allow 1^st time buyers to apply their $8,000 tax credit toward the purchase cost of a FHA-insured home. 

As long as the home buyer is using an FHA-approved lender, he or she will be able to monetize the tax credit in order to use it as additional down payment or for closing costs.  This will allow a 1^st time buyer to benefit from a lower interest rate. 

The above is a brief overview of some parts of the tax credit program, so you should contact Home National Mortgage for more information on how this program can benefit your unique situation.  If your looking for personal service and have questions regarding loans, be sure to connect with one of our mortgage specialists at www.homenat.com. They have local offices serving all of Lancaster, Lebanon, York, Hershey, Harrisburg, and Cumberland County PA.