Two New Products Offered by the PHFA for New and Existing Homeowners

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Are you looking for a new home but having a difficult time coming up with a sizable down payment?  Have you been faced with a financial hardship forcing you into a refinance situation?  Are the current interest rates making you wish you could enjoy the same historic low rates as countless others?

For Pennsylvania residents, there is a new offering provided by the Pennsylvania Housing Finance Agency that is designed to help people in these situations and more. Working in conjunction with Fannie Mae, the PHFA has set up a program that would allow buyers to purchase a home either without any Private Insurance or at a lower monthly payment depending on the situation.

Mortgage Loan Risks Shared Jointly by Fannie Mae and PHFA

The program, announced in late April of this year, will allow consumers to reduce the financial burdens of paying for private mortgage insurance since Fannie Mae and PHFA will be bearing the risks associated with low down payment mortgages. Both agencies have partnered after signing off on an agreement that eliminates PMI entirely from borrowers’ responsibility. They will conduct an evaluation process for each application to ensure good lending decisions are made.

Lower Monthly Payments for Some Customers

The second product offered in this program will be given to customers that will be required to pay PMI each month. The benefit will be in the form of lower monthly payments, reducing financial stress on families looking to tap into today’s historic low interest rates.

Same Low Down Payment as Traditional FHA Loans

Borrowers will be required to pay only 3% down of which some or all of the down payment can be in the form of gifts from family member or the additional PHFA Access Down Payment and Closing Cost Assistance Loan. When combined with no PMI or lower monthly payments this eases the burden significantly for many families and homeowners. The products are ideal for those people that cannot afford large down payments that are typical for a home purchase and it works well for people with little to no equity in their homes when refinancing.

Advantages of the PHFA Program

• Up to 97 percent of home’s value can be financed
• Non first-time buyers also qualify for the program
• Down payment and closing cost assistance available for both products
• Existing homeowners seeking refinancing may also qualify
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This factsheet provides a bird’s eye view of the new products. For more information about this or other loans that may be right for you, visit our website where we share a host of tools, resources and information that will help guide you to the right decision for you. We are also available on Facebook. We look forward to hearing from you if you have any questions of if you would like to learn how you can tap into these fantastic programs.