Would-be homeowners in PA to get help

06.16.09
By Lewis Green

Consumers need more than just excellent credit scores to be serious contenders in today's housing market - typically they also need a substantial down payment.

Lending standards and home buying requirements have tightened quite a bit from the more lax guidelines of just a few years ago.

With an increasing number of families facing foreclosure and many others unable to obtain a mortgage loan to finance the purchase of their first home, government entities at both the federal and state level are trying to help.

Pennsylvania is taking steps to combat the deteriorating residential market in the state by funneling more than $75 million in federal economic stimulus funds to housing projects.

"This is great news for families who have been hit hard by the foreclosure crisis in Pennsylvania, as the investments we are announcing today will help provide affordable housing for tens of thousands of Pennsylvanians," said Governor Rendell.

The money is tagged for a number of housing-related initiatives including the development of more than 750 affordable housing units in the central part of the state.

More broadly, the statewide projects will help create jobs and provide affordable housing for 5,000 families.

"It's also a great day for families who need help coming up with a down payment for a new home," the governor added in reference to money tagged for a new support program.

The governor explained that the Keystone First Program will provide up to $6,000 in down payment assistance to at least 1,000 families.

"It's much harder to get a mortgage today than it was a year ago," the governor said. "Most banks are looking for 20 percent down, or even more. The result is stable families looking for their first home can't come up with money up front to purchase a home," said Rendell.

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Stimulus funds to help create affordable housing