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As we welcome in 2012, I wanted to make you aware of some very important changes to the Pennsylvania Housing Finance Agency homebuyer programs. First of all, it's important to note that this information is only specific to Pennsylvania. So, this doesn't apply to any of my clients in New Jersey or any other surrounding states.
Right now, PHFA allows a $2000-$3000 secured grant towards closing costs. As of January 30, they are rolling out a new program - Keystone Advantage Assistance Loan which will provide up to 2% of the sales price (maximum of $4000) towards closing costs. It will be a 10 year second loan at the same interest rate as the first mortgage.
So how does this work? This program is meant to help people who need to borrow a portion of the funds to cover their closing costs associated with the purchase of the home. Homebuyers can apply for assistance from $500 up to the lesser of 2% of the purchase price or $4000.
There is no prepayment penalty for paying off this loan early. Borrowers can use the KAAL in conjuction with PHFA's Keystone Goverment loan - FHA, VA or USDA. Borrowers must require maximum PHFA financing which is no more than 3.5% for FHA loans and 100% for VA loans. Normal underwriting requirements still apply.
I also want to let you know that a brand new program is coming out in Spring 2012 which is very exciting. We will have access to a 97% LTV program with no mortgage insurance through Fannie Mae's HFA program in conjunction with PHFA. Although PHFA interest rates are a little bit higher than regular conventional and standard FHA loans, this program will be a huge benefit to borrowers.
As always, I will keep you updated on the latest changes in any of the mortgage programs that we offer and any new programs that become available. Feel free to call or e-mail with your questions and referrals.
Editor's Note 1/30/2012: The Pennsylvania Housing Finance Agency today launched several exciting new homeownership programs.
To view a special edition of the PHFA newsletter describing these new programs, please visit: http://www.phfa.org/forms/
