FHA LOAN HIGHLIGHTS FOR STATE COLLEGE, PA

Since we have been on the topic of purchasing homes, I would like to highlight a few loan program options over the next few weeks. If you are looking for a home in the State College, Williamsport, or the Northern Tier areas, Principle Home Mortgage, LLC can help you find the best loan program to fit your budget. Shane and Kate Whitteker at Principle Home Mortgage, LLC want to see your dreams become a reality (in all your life) but mostly when it comes to purchasing your home.

This week, we want to highlight FHA loans. FHA stands for Federal Housing Administration and these loans are government insured. When comparing FHA loans to Conventional loans, FHA are more expensive but they can help individuals purchase homes that wouldn’t otherwise be able to. Here are a few highlights of the FHA loan:

1. As little as 3.5% down payment allowed (whereas a conventional loan has a minimum of 5% down for a conforming loan, 10% for a high-balance loan, and 20% for a jumbo)

2. 100% gift funds allowable

3. Credit scores as low as 580

4. No minimum reserves requirement on 1 unit homes

5. Cash out up to 85% loan-to-value (LTV) ratio allowed (on 1 unit homes)

6. Non-occupant co-borrower (a co-signer) is allowed

7. Up to 6% Seller Assist on purchases

8. Foreclosure 3 years ago is allowable

As you can see from the above list, FHA loans can help individuals and families purchase a home who may not otherwise qualify. If you are in the State College, Williamsport, or the Northern Tier areas and are not sure what you might qualify for, David “Shane” Whitteker at Principle Home Mortgage, LLC can help answer your questions and find the loan program that fits your specific situation best.