Pennsylvania Mortgage Program Created to Help More Than 11,000 Borrowers

A new $1.2 billion statewide mortgage program has been created to help more than 11,000 homebuyers with affordable loans that will also help boost Pennsylvania's economy. The initiative is a partnership between the Pennsylvania Housing Finance Agency, the U.S. Treasury, Fannie Mae and Freddie Mac. Key elements of the program include making 11,000 long-term (30-year), fixed rate, low-interest mortgage loans; expanding the Keystone First program with an additional $10 million to help buyers who are eligible for federal homebuyer tax credits to borrow up to $6,000 interest-free for closing costs and down payments; and providing $50 million for approximately 450 new-home construction loans to encourage new building activity and create jobs. The new program targets $50 million to encourage new home construction because funds for building new homes have been scarce in these tight credit markets. It will assist in moving existing inventory for homebuilders, and create jobs for architects, builders, laborers and others in the construction industry.