investment direction A program shall not be treated as a qualified first-time homeowner assistance program unless it provides that any contributor to, or designated beneficiary under, such program may, directly or indirectly, direct the investment of any contributions to the program (or any earnings thereon) no more than 2 times in any calendar year. (5) No pledging of interest as security A program shall not be treated as a qualified first-time homeowner assistance program if it allows any interest in the program or any portion thereof to be used as security for a loan. (6) Certain restrictions disallowed A program shall not be treated as a qualified first-time homeowner assistance program unless, with respect to each first-time homeowner assistance account, the program does not— (A) prohibit the designated beneficiary from acquiring or constructing a principal residence outside of the State, (B) limit any State tax preferences for contributions to these accounts based on the residence of the contributor or the designated beneficiary, or (C) condition withdrawals, or limit any State tax preferences for withdrawals, from these accounts from being applied only with respect to residences located within the State. (c) First-Time homeowner assistance account For purposes of this section— (1) In general The term first-time homeowner assistance account means an account established under a qualified first-time homeowner assistance program for the purpose of providing qualified down payment assistance to the designated beneficiary of the account. (2) Qualified down payment assistance (A) In general The term qualified down payment assistance means a distribution— (i) to a designated beneficiary who is a first-time homeowner of a principal residence in the United States, (ii) under a qualified first-time homeowner assistance program in connection with the acquisition, construction, or substantial improvement of a principal residence at or before the time of such acquisition or construction, and (iii) the amount of which,