Pennsylvania FHA Mortgage Loans
Pennsylvania FHA Mortgage Loans
There are more people than ever before in Pennsylvania who are choosing FHA mortgage loans as the best way to finance their home. It was only a few years ago that FHA was not really an option for many people due to the number of other loan programs – but now FHA has become almost the “loan of choice” for many people living in Pennsylvania. It is fair to say that FHA loans are no longer for people with less than perfect credit or first time home buyers – many people are now getting FHA mortgage loans.
Most people are aware that FHA isn’t actually a lender who lends you money, they only act as an insurance company and insure your loan in the event of default. This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.
Pennsylvania FHA Mortgage Loan Highlights Include:
- In addition to UFMIP, monthly mortgage insurance is required on all FHA loans
- 3.5% down payment is required, but can be a gift from a relative
- FHA does not allow prepay penalties on FHA loans
- Seller-paid closing costs are allowed with FHA loans
Pennsylvania FHA Streamline Refinance
For people who currently have a FHA loan in Pennsylvania, when rates drop the Pennsylvania FHA streamline refinance is the program of choice to lower their mortgage payment each month. The FHA streamline refinance is the easiest way to get a lower rate. The primary criteria to be eligible for the FHA streamline is that you have made your mortgage payments on time for the last 12 months.
Pennsylvania FHA 203k Streamline Program
If you are considering buying a bank owned home that needs a few repairs, the FHA 203k streamline program is a popular choice for homes in this situation. With the FHA 203k streamline, you can set aside up to 35,000 for repairs and it can be paid directly to the contractors who perform the work. If you are considering a FHA 203k streamline, be sure to speak with a loan officer who has FHA 203k streamline experience – they can be a little bit tricky to get done.
Pennsylvania FHA 85% Cash Out Program
For anyone interested in accessing a portion of the equity in their home, the FHA 85% cash out program allows you to access up to 85% of your homes value in cash. Many people find that by paying off high interest debts, they are able to get in a better overall financial position.
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