How To Get $25,000 Towards Your First Home!

In a significant move to address housing disparities and promote homeownership in underserved neighborhoods of Philadelphia County, the Pennsylvania Housing Finance Agency (PHFA) has joined forces with the Urban League of Philadelphia to launch the Revitalizing Neighborhoods and Increasing Homeownership (RNIH) program.

This innovative pilot initiative aims to reduce purchasing barriers for aspiring homebuyers and empower them with the tools and knowledge necessary to embark on their homeownership journey. By combining flexible loan products with extensive consumer coaching and financial education, the RNIH program seeks to transform the lives of families who have previously faced challenges in becoming homeowners.

 

Importance of being a homeowner

Homeownership is not only about having a place to call your own; it's a vital means of building wealth and financial stability.

PHFA's Executive Director and CEO, Robin Wiessmann, emphasizes the significance of this initiative: "Homeownership is important not only for the housing it provides, but it also allows families to build wealth over time through their investment in real estate. Our new Revitalizing Neighborhoods and Increasing Homeownership program will give us the chance to test new loan features, paired with financial education and housing counseling, to open doors to homeownership that may have been closed previously. This initiative will benefit homebuyers who participate in the program and Philadelphia County neighborhoods, too."

 

What is the RNIH Program?

The RNIH program is designed to make homeownership more accessible while ensuring that participants are prepared for the responsibilities it entails. Some key features of the program include:

  1. Flexible Loan Products: The program features the PHFA loan product known as K-Flex, which offers a 30-year fixed rate to maintain affordable monthly payments. This product can be combined with other PHFA loan products to provide funds for essential home improvements.

  2. Expanded Eligibility: The program relaxes certain homebuyer requirements, making it possible for individuals with no credit score to qualify for a loan by using non-traditional sources of credit.

  3. Income and Price Limits: The qualifying income limit for participation in the RNIH program is $196,200, and the purchase price limit is $659,000.

  4. Financial Assistance: RNIH participants must make a minimum contribution from their own funds, which is the lesser of $1,000 or 1% of the loan amount. Additionally, eligible homebuyers can access grants of $25,000 to apply to closing costs, with any excess funds available for paying down student loans. Furthermore, a 10-year forgivable loan of up to 5% of the sales price is available to eligible borrowers. Notably, no mortgage insurance is required, reducing monthly loan payments.

 

Eligibility Requirements

To participate in the program, RNIH participants must meet the following criteria:

  1. Reside in Philadelphia County.

  2. Be purchasing a home in Philadelphia County.

  3. Be first-time homebuyers.

  4. Make a minimum contribution from their own funds (the lesser of $1,000 or 1% of the loan amount).

  5. Have liquid assets no greater than $50,000.

 

Homes For Sale in Philly:

The Revitalizing Neighborhoods and Increasing Homeownership program represents a vital step in addressing housing disparities and increasing homeownership opportunities in Philadelphia County. By providing flexible loan options, financial assistance, and comprehensive education, this initiative empowers individuals who have historically faced barriers to homeownership. Ultimately, the RNIH program not only transforms the lives of participants but also revitalizes neighborhoods, fostering a stronger and more vibrant community for all. This innovative approach to homeownership is a testament to the power of collaboration and commitment to social progress.

 

More Listings in Philadelphia:

 

Venture Philly Group

Buy. Sell. Invest.

info@venturephilly.com

o. 215.592.9522

604 S Washington Square, Philadelphia PA 19106

venturephilly.com


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