Finding an Affordable Mortgage in the Lehigh Valley, Pennsylvania
When looking to buy a home in Pennsylvania, one thing you want is to get access to affordable mortgages. Shopping around for lenders is an uphill task, but The Pennsylvania Housing Finance Agency (PHFA) can make it easier for you.
The agency partners with multiple lenders to offer various helpful programs for first-time homebuyers. They also cater to other categories of homebuyers to ensure access to mortgages with pocket-friendly rates. You can sign up for home assistance programs that offer to pay your down payment and closing costs through the agency.
Once a lender processes your mortgage, the PHFA purchases it from the lender after closing. Your monthly mortgage payments go directly to the agency, not the lender.
Types of Loan Programs for First-time Homebuyers
Some 30-year, fixed-rate mortgage loans you can get from the PHFA are:
Federal Housing Agency loans
Conventional mortgages
US Department of Agriculture loans (USDA)
Veterans Affairs loans
They all have different eligibility requirements like home price limits or household income limits, and the restrictions differ.
HFA Preferred
The HFA Preferred loan is an attractive offer that enables homebuyers with small down payments to access low-cost mortgage insurance. It works by catering to the added expense of private mortgage insurance (PMI), which hinders many first-time homebuyers from achieving their dreams.
The program is available for those buying or refinancing a primary home with a single unit, whether a first-time or repeat homebuyer.
Keystone Home
The program is available for first-time homebuyers, those in targeted Pennsylvania counties, and discharged armed forces veterans. It provides FHA loans, conventional mortgages, USDA loans, or VA loans, each with varying characteristics, household income limits, and purchase price limits requirements.
Keystone Government Loan (K-Gov)
Mortgage lenders and brokers who are partners with PHFA can offer affordable mortgages to homebuyers in USDA loans, VA loans, and FHA loans. The program is open to various categories of homebuyers who meet USDA loan income limits.
The FHA loan amount maximum applies too. Another requirement is for homebuyers with a FICO credit score of less than 680 to take a homeowner education course.
Down Payment Assistance Programs
Homebuyers can access these programs to receive funding for down payments and closing costs:
Keystone Advantage Assistance Loan Program: It's available to homebuyers with a minimum credit score of 660, and the minimum loan is $500.
HOMEstead Assistance Program: It avails funding of between $1,000 and $10,000 for down payments and closing costs and is a no-interest mortgage loan.
Getting Started with Home Assistance Programs
As a first-time homebuyer, you may not have adequate information about accessing home assistance programs. An experienced realtor in Pennsylvania can guide you in the right direction. The Jared Erhart Team knows, loves, and lives in Pennsylvania and understands the ins and outs of the programs. Contact our office today to schedule a consultation on your home purchase.
