First Time Home Buyer in PA

First time home buyersYoung families are now able to live their dreams due to a variety of house loans tailored specifically to their needs. The days of being unable to get a house loan due to poor credit or a lack of money are over. While these issues may have been insurmountable in the past, they are no longer valid impediments for a first-time home buyer seeking a mortgage.

New possibilities have opened up throughout the country and the State of Pennsylvania as a result of an abundance of innovative home loan (mortgage) programs designed to assist first-time home buyers who were previously refused entry into the housing market.

Credit seminars, down payment help programs, house purchasing campaigns, and subsidies specifically for first-time home buyers are sprouting up all over. Many individuals are either unaware of these first-time homebuyer loans and grants or are unaware of how easily they may get them.

A Quick Guide to First-Time Home Buyer Loans

It's often tough for young individuals to purchase a house since they are just beginning their jobs and may still be paying off a sizable student debt. Some individuals go to first-time home buyer programs to assist them in overcoming the financial obstacles associated with a house loan. There are many of these programs to select from, and each one is unique based on the location where it is provided. The aim is to provide financial help to eligible borrowers. The Pennsylvania Housing Finance agency and many PA countieswill assist first-time homebuyers with a house loan.

Many first-time home buyers are discovering that they are eligible for down payment and mortgage assistance.

The Pennsylvania Housing Finance Agency and Pennsylvania counties provide help to low-and moderate-income households with down payments and closing expenses.
Some counties in Pennsylvania allow prospective homeowners to borrow up to $10,000 for a house loan. See county listing

The good news is that the money is sometimes made available in the form of a house loan that is entirely forgiven if the home buyer commits to staying in the property for five years. Certain programs will forgive 20% of the aid each year. To qualify for down payment help, an individual's income must usually not exceed 80 percent of the county's median income.

To begin the process of obtaining a house loan, prospective purchasers should contact their local county housing finance department.

Local banks often engage in the issuance of these house loans to first-time home purchasers. There are often conditions attached, but they may be a modest price to pay for the chance to get free money or financial assistance that would not be available otherwise.

Each home loan program will operate according to its own set of regulations.

Counseling Classes to Assist in Obtaining a Mortgage

One of the conditions for obtaining these first-time homebuyer mortgage loans is that potential homeowners must attend several hours of informal counseling. The industry wants to ensure that first-time home buyers understand how to avoid unscrupulous financing tactics. Additionally, they may find that their credit score qualifies them for a conventional mortgage/home loan. Even for those who have purchased several houses, the home-buying process may be complicated.

Before starting the search, being acquainted with offers, counter offers, appraisals, and closing processes, among other things, can help relieve some of the tension and enable a person to make better educated choices.

Local counseling services for first-time homebuyers provide courses on house buying education. The seminars are available to anybody interested in purchasing a house and are completely free.
See a list of PHFA approved counciling agencies

The Pennsylvania Housing Finance Agency

PHFA imageThe Pennsylvania Housing Finance Agency (PHFA) provides affordable housing services to Pennsylvania residents. Many financing alternatives are available in Pennsylvania for first-time home buyers (and non-First Time Home Buyers who purchase a home in "targeted" counties"). Some of the loan alternatives made accessible by the PHFA are as follows:

Keystone Home-Loan Program

Applicants must be first-time home buyers unless they are buying a property in a "targeted" county and do not own another residential dwelling at the time of closing.
This program is suitable for first-time home buyers who have a 20% down payment.

A first-time home buyer is someone who has never owned or held title to a main residence in the preceding 36 months. There are several exceptions. Keystone's home-loan program has income and sales price limits. More information is available at: Keystone home loan

Keystone Government Loan Program

FHA, USDA, and VA loans are available for first mortgage financing via the Keystone Government Loan Program (K-Gov). There are no income or purchase price limitations with the K-Gov program, and you do not have to be a first-time home buyer. Continue reading to find out more.

HFA Preferred™ and HFA Preferred Risk Sharing™ Loans

The HFA Preferred Risk SharingTM and HFA PreferredTM loans require a 3% down payment. The only difference between the two loans is that if the down payment is less than 20%, the HFA PreferredTM requires mortgage insurance.
Learn more here.

Keystone Advantage Assistance Loan

Purchasers who qualify for a PHFA government-insured first mortgage (FHA, USDA/RD, VA) via the Keystone home loan or Keystone Government Loan programs, as well as the HFA Preferred Risk Sharing and HFA Preferred mortgage programs, are eligible for the Advantage assistance loan.

Qualified home buyers may borrow a portion of the money needed to cover their down payment and/or closing costs associated with the purchase of their house.
More information may be found here.