subject: Pennsylvania Fha Mortgage Loans [print this page] Why the Pennsylvania FHA loans? Why the Pennsylvania FHA loans?
Many reasons exist to consider working with a Pennsylvania FHA loan, although borrowers have options outside of the Pennsylvania FHA loans program, including private and traditional home loans. Why would someone be interested in an FHA loan over other programs? What does the FHA offer citizens of Pennsylvania that private mortgages do not?
Pennsylvania FHA Loans : What is available?
Pennsylvania FHA loans offer potential borrowers a variety of properties that they can purchase through this program, rather just single-dwelling homes. All properties need to quaifly through the FHA loan program, so check with your lender for specifics. Some alternative properties available include manufactured homes (permanently housed on a foundation), condominiums and foreclosures or short sales.
Do I make too much money to qualify for Pennsylvania FHA loans?
Pennsylvania FHA loans do not have maximum earning limits for the purchase of a home. Many FHA programs have minimum earning limits, and these are usually determined by credit score and the price of the property for sale. Some optional programs within the FHA program, such as down payment grants or home renovation assistance, may have maximum income restrictions, so understand the requirements of your loan before agreeing to it.
Who should choose Pennsylvania FHA loans?
As the Federal Housing Authority, or FHA, underwrites the home loan to the lender, Pennsylvania FHA loans can be a good choice for those with low credit scores. In addition, down payments through these loans can be as low as 1.5% of the total cost of the home, giving those with less savings the opportunity to purchase a home.
Borrowers should understand, however, that while the FHA backs the loans offered through their mortgage program, they do not set the interest rates, mortgage insurance rates or down payment amounts required for a loan. Different lenders may offer other options to home loans as well, including using family financial gifts as down payments or securing extra funding for immediate home repair or renovation needs.
Pennsylvania FHA loans are known in the industry as being excellent advocates for their borrowers, including working with homeowners to avoid foreclosure in the face of job losses or illness. While different loans and policies vary by lender, some loans offer insurance or relief for natural disasters as well, which is unusual in the field of mortgage lending.
Services offered through Pennsylvania FHA Loans
While down payment assistance and lower income guidelines are excellent reasons to apply for an FHA loan, other programs exist that benefit homeowners as well. The Energy Efficiency Program helps homeowners afford energy efficient appliances, windows, heating and air conditioning. Grants exist for down payments as well, including AmeriDream, Partners in Charity, Family Home Providers and Newsong. Cash-out refinancing offers borrowers the chance to use equity and other mortgage monies for college study or home renovation. Pennsylvania FHA loans also take into account the stage of a person?s life during the qualification process, such as repayment of college loans, job losses or serious illness that may affect the ability to repay the loan.
