PFHA New Construction

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If you are looking for a new construction home in the state of Pennsylvania, then we have some great news for you!  On July 16th, the PHFA (Pennsylvania Housing Finance Agency) unveiled a new program which allows for a $6,000 closing-cost assistance.  This incentive is just another factor in the make-up of one of the greatest housing markets in decades, in addition to low interest rates and high inventory.

What is this closing-cost credit?

This $6,000 closing-cost assistance is a loan.  Amortized over ten years at whatever the new construction loan rate is, which, as of August 1st, is 4.25%.  This new incentive follows the same guidelines of any other PHFA new construction loan and is tailored specifically for new construction homes in the state of Pennsylvania.

Why is this closing-cost credit “great news”?

The new $6,000 closing-cost credit is 50% higher than the standard $4,000 closing cost assistance loan offered by the PHFA for buyers of existing homes.  The additional closing cost assistance funds will not only ease the financial strain of consumers, but is expected to stimulate the state’s housing industry as well.

In addition to this newest program created by the PHFA, there are many other incentives offered by the Agency. So, if you are looking to buy a new construction home in the Keystone State, or any other property, make sure to contact me to see which incentives will best suit you!

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.

Great New Loan Program Being Released by PHFA

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I'm excited to announce that PHFA has released two  brand-new conventional loan programs that will help many buyers and sellers who want to purchase or refinance around our area. As you know, PHFA stands for Pennsylvania Housing Finance Agency. The new programs are the HFA Preferred and HFA Preferred Risk Sharing.

These programs are absolutely fantastic because it allows new homebuyers to only put 3% down and with lower or no mortgage insurance. Another great aspect of these loan options is that it can be used for either purchasing a home or refinancing an existing mortgage. Before, the Pennsylvania Housing Finance Agency didn't have any offerings for refinances. Now, their new loan programs will allow existing homeowners who may not have much equity to still be able to refinance their homes. Specifically, PHFA will allow homeowners to do a rate and term refinance up to a loan-to-value of 97%, e.g. for an appraisal value of $200,000, you can refinance up to $194,000.

Of course, there are a few limitations such as following the PFHA income limitations. Throughout Philadelphia, Montgomery, Delaware, Bucks, and Chester counties the maximum allowable income is $97,800. Keep in mind that the programs only apply to one-unit primary residences – no duplexes or investment properties. The interest rates are slightly higher than regular FHA or conventional loans, but as the chart in the video points out, the total monthly mortgage payment would still be notably lower in most cases.

PHFA announced the release of the new programs this past Friday, April 27th. These two new mortgage programs give prospective homebuyers and current homeowners alike more affordable opportunities to save money whether purchasing your first home or refinancing your forever home.

Make sure to contact me with any questions you have about your real estate financing needs. I am always happy to answer your questions or even run numbers for you to make sure that you have the right kind of financing for your needs.