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FOR IMMEDIATE RELEASE |
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State
Rep. Richard Grucela |
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Grucela bill would help lower-income families purchase homes
HARRISBURG, Nov. 16 State Rep. Richard Grucela, D-Northampton, introduced legislation (H.B. 2040) Wednesday that would assist limited-income families with the opportunity to purchase a home by establishing funds to subsidize loan and mortgage insurance programs.
Grucela said for years, especially in the Lehigh Valley, the cost of housing has ballooned out of reach for many families.
The rate of new houses being built has not kept up with the influx of population, and real estate prices are rising all over Pennsylvania and the nation, Grucela said. Its very hard to make a 20 percent down payment anymore, and many people struggle to pay tacked on mortgage insurance, closing costs and other fees. My legislation would help those who truly need assistance get through the initial purchase of a house.
The Affordable Housing Trust Fund would be established under the Pennsylvania Housing Finance Agency as a permanent fund to be used by the agency to help low-income and moderate-income families attain home ownership through the Home Purchase Loan Program and the Mortgage Interest Subsidy Program.
The Home Purchase Loan Program would help potential homeowners with closing cost assistance, down payment assistance or both. Repayment would be deferred by PHFA up to the length of the first mortgage.
The Mortgage Interest Subsidy Program, which would consist of second or subsequent mortgage loans and grants, would be used to buy down interest rates for eligible homeowners -- to create an affordable monthly mortgage payment. Repayment would mirror the rules set forth under the Home Purchase Loan Program.
Applicants would be required to meet income and asset guidelines, undergo home ownership counseling and not have owned any residential property within the past three years.
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CONTACT: Ann Collis |