New loan program in Pennsylvania helps first-time buyers with upfront costs

Buying a home costs more than just the monthly mortgage. Many renters who can afford regular rent payments struggle with the extra money needed at the start for down payments and fees. Pennsylvania now offers a new loan called K-DATE to help with these expenses. Unlike regular loans, K-DATE has no interest and no monthly payments. Homebuyers only need to repay the money when they sell, refinance, or pay off their mortgage. The loan can even wait up to 30 years if needed. The program targets lower-priced homes where buyers need the most help covering these costs.For homes priced at $150, 000 or less, buyers can get 8% of the home's value to cover down payments and fees. If the home costs more than $150, 000, they get 5%. Both options require a credit score of at least 660. Free counseling sessions are also included to help buyers prepare for homeownership. The program works alongside other state loans like the Keystone Home Loan. Income limits vary by county, allowing higher earnings in expensive areas like Philadelphia. In some counties, a couple can earn over $119, 000 and buy a home worth as much as $571, 200.