How to qualify for a $10k home incentive in Philadelphia
Get some more for the piggy-bank
Can a new resident in Philadelphia qualify for the $10k for first time home buyer incentive?
Recently the city of Philadelphia announced that, in an effort to make home-ownership possible for more people, they are offering an incentive to first-time homebuyers. This new program called, “Philly First Home” offers to first-time homebuyers looking to purchase a home in Philadelphia the opportunity to receive a loan of up to $10,000 from the city. Those funds will be put towards closing costs and the down payment on the new home. For those that are newly moved to the city for work, especially in the medical field, this is excellent news.
There are a few qualifications for homebuyers who will utilize the loan:
● You must be a resident of Philadelphia for at least three years.
● You must not have owned or purchased a home within the past three years.
● The home purchased must be within the county limits.
● You must complete housing counseling with an approved agency.
● Your household income must be at or below 120% of the area median income; for a single person that would be $72,565 or for a family of four, it would be $103,615.
Since one of the leading causes that prevent home purchases is the initial cost of the down payment, this incentive is made with the hope that it will enable more Philadelphians to become homeowners. To be considered a first-time home buyer, you must not have owned what has been your primary residence for the past three years.
Through the Philly first home program, the city will offer up to 6% of the purchase price-as funds to help in the purchase of a home.
The way that this loan will work is that a lien will be put on the purchased property for any financial assistance received. If within the first 15 years of ownership the house is sold, leased, or re-mortgaged, the lien will immediately become due and will be paid out of any money made from the transaction. If, after 15 years, the house is still the sole property of the beneficiary of the loan, the debt will be forgiven.
For those making a move to the area to work in the medical field (or are already living in the city) this is an excellent way to become a homeowner and see their dreams come true.
While the Philly First Home program is making it possible for those that lack the proper finances to purchase a home, they are also ensuring that the potential homeowners are taking necessary steps (such as completing housing counseling) to verify that genuine interest and effort is being made to obtain the loan and buy a house. By having the lien placed on the home they are also taking precautions to make sure that if the house does change hands, or money is made from it within the first 15 years of purchase their loan will be recouped.
For future homeowners (especially those that are planning on staying in the area and establishing their career there), this should not be an issue, and any work on their part to obtain the loan should be far outweighed by the benefits of it being made possible to become homeowners.
Also, Philadelphia is a beautiful city, and who wouldn't want to live there?