STEELTON — Gov. Ed Rendell said a state agency will provide up to $6,000 in interest-free loans to help first-time homebuyers make a down payment.

Rendell made the announcement Wednesday at a former school building that will be converted into apartments.

Rendell said the Pennsylvania Housing Finance Agency will provide the down payment for at least 1,000 first-time homebuyers.

The homebuyers would be expected to pay back the agency after they get the same-sized tax credit thanks to the federal stimulus program Congress approved in February.

Rendell said the single biggest impediment for first-time homebuyers is coming up with enough up-front cash to get a loan.