Mortgage incentives were always a significant part of the home mortgage loan. However, for the past few years, lenders are pushing incentives and convincing buyers that they need to borrow money. But many borrowers, especially first-timers have a lot of questions before taking our any other additional money. These first-time homebuyers have many questions before they make the final commitment. These are just some of questions before they make their final decision.
Can mortgage incentives save some money?
Are there any incentives when you are buying a house for the first time?
Are there any incentives in the Philadelphia, PA region that can be beneficial for the home buyers, especially first-time homebuyers?
Can you save some money with a mortgage incentive?
The answers to all of these are yes and no: everything depends on the state you live, the program you choose, what you want to do with it and other key factors. There are some programs in Philadelphia worth your attention, which can save you some money.
Whether it’s your first or second home mortgage loan, the tendency among the lenders nowadays is pretty clear: to boost the application by offering incentives, which can also be different:
Green mortgages waive closing fees if you are making some energy-efficient changes.
Some are more abstract, for example; you close your mortgage, the lender will plant a tree in your dedication or donate to charity.
Special incentive payment offers, discounts, etc.
Saving bonds offers and much more!
The important information for first-time homebuyers
It's highly recommended to consult a professional mortgage broker like Everest Home Mortgage or at least use the special mortgage calculator before making your final decision. People that buy a home for the first time and need a loan for it, which are the majority of homeowners, are looking for a mortgage incentive. Some programs can affect the final price of your new house dramatically. Larger discounts are usually offered to police officers, teachers, firefighters, medical personnel, etc.
If you need more options, tax incentives also can help during the purchase of your first house. Unfortunately, the federal first-time home buyers credit program doesn’t exists anymore but note that the MCC program still works and offers a good annual tax credit. The best part is that some lenders even consider the money you save using the MCC program as extra income; thus, they allow you to borrow more and afford to buy the bigger house.
Various incentive programs in the Philadelphia, PA region:
1. Cash Incentive Program For Penn Faculty
If you don’t mind to live close to The University City, The University of Pennsylvania established two housing initiatives – including a cash mortgage incentive program – to increase the number of homeowners in this area. This offer is valid if you are Penn faculty, teacher, or another member of staff, who commits living in this house for a minimum of seven years. In this way, you’ll receive $3,000 each year and for seven years, or $15,000 upfront that you can spend on housing expense.
2. Benefits For The Health System Members
People that consider buying a house in West Philadelphia and are full-time faculty at the Penn University or Health System can also benefit a lot from the local saving programs. The Penn University can guide you through the whole process of buying a house and even offer financial aid programs! The University’s housing programs are usually affordable and can be used both by full-time staff members of the Penn University and Health System.
You can choose either Enhanced Forgivable Loan Program of Penn (gives full-time employees $7,500 that can be used in various ways: from down payment and closing costs to home renovations and the purchase of eco-products) or The Closing Cost Reduction Program (offers discounted closing costs for the home purchases to the University community).
3. Homebuyer Assistance Grant
Housing counseling required for first-time buyers of properties in selected areas to receive up to $10,000. Contact the Office of Housing and Community Development at 215-686-9749.
4. Settlement Grant
This program is also for the first-time homeowners. The Settlement Grant provides up to $500 per one household and helps first-time homebuyers in Philadelphia to cover the costs of the purchase. Visit the website of the Office of Housing and Community development and get to know more about the settlement assistance grant and whether you are eligible.