There are many home-buying myths that might have you thinking you’re not in a position to buy, while the reality may be that you simply have not spoken to the right lender yet. As a preferred lender of the Pennsylvania Housing Finance Agency (PHFA), Philadelphia Mortgage Advisors offers first-time homebuyer programs that many other lenders simply cannot. Our participation with PHFA allows us to make first-time buyers’ dreams a reality. PMA, in conjunction with PHFA, offers Conventional and FHA loan products requiring as little as a 3% down payment without the need for any Mortgage Insurance at all. Smaller down payments, no mortgage insurance, lower credit score requirements, and less of your own money into the transaction are all a reality through PHFA’s programs.
Mortgage Insurance is a coverage commonly required by lenders when a borrower has a down payment of less than 20% of the purchase price. It is typically either added to your monthly mortgage payment or built-in to your loan amount. PHFA offers a program that does not require any mortgage insurance, even with as little as a 3% down payment. In addition, PHFA requires a borrower to have a minimum of $1,000 of their own funds into a Conventional loan transaction, allowing the remaining funds for closing costs and down payment to come from a “gift funds”, Seller Credits, and/or assistance programs.
As long as a borrower’s annual household income and the subject property’s purchase price meet PHFA’s eligibility requirements in Philadelphia, Montgomery, Bucks, Chester, and Delaware counties, this is an excellent alternative to similar FHA products. These county specific limits can be found on www.phfa.org.
In addition to offering competitive first-time buyer programs, PHFA has launched a Mortgage Credit Certificate (MCC) Program, which allows homebuyers to claim a tax credit for 50% of the mortgage interest paid per year (capped at $2,000 annually). It is a dollar-for-dollar reduction against your federal tax liability, which can save tens of thousands of dollars over the life of your loan. We at PMA register you for this MCC Tax Credit program when we lock your interest rate. It’s as simple as that! As always, you should consult a tax advisor for further information on tax credits or deductibility of interest and charges.
Jason and Jessica DeLisi have an excellent knowledge of the different first-time homebuyer programs being offered, from working with numerous borrowers over the years. Allow our team of experts to help you through what can sometimes feel like an overwhelming process. At PMA we pride ourselves on the individual service that all first-time homebuyers deserve.
All loans are subject to credit approval.
Philadelphia Mortgage Advisors is an Equal Opportunity Lender.