Pennsylvania Mortgage Overview
Pennsylvania is an affordable place to
live. Its average home price is $180,200 which is much less than the national
average, making it a great place to buy your first home. Pennsylvania is a key
state in Eastern states and is a great place to call home.
If you're thinking of moving to PA, here
are your loan options.
Pennsylvania conventional loans
You'll need a
660 credit score or higher to get a conventional loan. But, you can get by with
as little as 3 percent down if you've never owned a home or 5 percent if you
have. You need an average or low debt ratio of 36 percent, but you only pay
mortgage insurance until you owe less than 80 percent of the home's value.
Pennsylvania FHA loans
If a conventional loan
isn't an option, the FHA loan may be a good fit. With just a 580 credit score
and 3.5 percent down, you can get an FHA loan. The down payment can be down
payment assistance or a gift. If you have a 500 - 579 score, a 10 percent down
payment is necessary and 3.5 percent of the funds must be yours. FHA loans
charge mortgage insurance for the life of the loan.
Pennsylvania VA loans
Military veterans can
secure 100 percent financing from a VA lender. With just a 620 credit score and
proof you make enough money to cover all your bills, you may buy a home sooner
than you thought possible. VA loans have an upfront funding fee but don't
require mortgage insurance.
Pennsylvania USDA loans
If you love the rural
life and have a household income of 115 percent or less of the area's average
income, you may be a good candidate for a USDA loan. You don't need a down
payment, but do need a 640 credit score and a max 41 percent debt ratio. USDA
loans charge mortgage insurance for the life of the loan.
First-Time Homebuyer
Programs in Pennsylvania
HFA Preferred LoMI
This
conventional loan makes mortgage insurance more affordable so good credit
borrowers can secure conventional financing. You must be within the income
limits and you must use at least $1,000 of your
own funds for the down payment.
Keystone Government Loan
You don't have to be a first-time homebuyer for this program, but you can be.
It provides more affordable loans including the FHA, VA, and USDA loans.
Tax credit
If you meet the
income guidelines, you may qualify for a Mortgage Credit Certificate which
provides a tax credit for the interest you pay on your mortgage each year, up
to $2,000, and for the life of the loan.
HOMEstead Down Payment
Assistance
You may qualify for up to $10,000 in down payment assistance. The
loan is forgiven at 20 percent over five years so if you live in the home for
at least 5 years you don't have to repay the funds. You must meet the income
requirements to qualify.
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