Somerville’s Winter Hill Bank has been selected to participate in MassHousing’s newly established Tax Credit Loan Program for eligible first-time homebuyers.   

The program was announced recently by Gov. Deval Patrick and was developed to assist first-time homebuyers by making the new tax credit recently enacted in the Federal Housing and Economic Act of 2008 and 2009 available for buyers to use toward the purchase of a home.

Under the program, the tax credit will be made available up front in the form of a loan up to a maximum of $8,000 toward primary residence home purchases made before Dec. 1. The Tax Credit Loan will be interest free if repaid by June 1, 2010. Applicants must be first-time homebuyers using a MassHousing first mortgage through a selected MassHousing approved lender, the bank said.

"The program will certainly go a long way to decrease out of pocket expenses and will bring out many prospective homebuyers that have not been able to take advantage of the market due to limited savings," said Pauline D’Aurora, senior vice president/chief lending officer of Winter Hill Bank. "The effect of this program will also help to stimulate the local housing market. The bank is looking forward to partnering with MassHousing and having the opportunity to provide this needed assistance to the first-time homebuyer."