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Mortgage Calculators

Payment Calculator
APR Calculator
Debt to Income Calculator
PA Title Insurance & Transfer Tax Calculator

First Time Home Buyer Programs

PHFA - PENNSYLVANIA HOUSING FINANCE AGENCY

Learn about Pennsylvania First Time Home Buyer Program (PHFA)

How PHFA works
Phfa - Keystone Home Loan
Phfa - Keystone Home Loan PLUS

Pennsylvania Median Income Limits
Closing Cost Assistance.pdf
Keystone Home Loan Limits.pdf
Keystone Plus Loan Limits.pdf

FHA Resources

FHA Funding Fee & MIP Explanation
FHA Condo Lookup
FHA Calculation
FHA Funding Fee & MIP Calculator
FHA Limits Look Up
FHA Q & A

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Home Buying Videos

Here are three great videos produced by the Department of Housing and Urban Development (HUD). You will be redirected to the AnytimeEstimate video page

Shopping for Your Home

Shopping for Your Loan

Closing the Deal

How do I buy a house? Where do I start? Which loan program is right for me?

Young family If you’re a first time home buyer, purchasing your first home might seem a overwhelming. You might be thinking, how do I buy a home”, “what’s a mortgage”, “who has the lowest interest rate”, how much can I afford”, and last but not the least, your want the “best deal”.

Let's start with "What’s a mortgage"?
A mortgage is just another name for a loan. The word mortgage is a French word for "death contract". The mortgage (loan) ends (dies) when either the loan is paid off or the property is taken through foreclosure.

There are four primary type of loans to finance a home:

FHA (Federal Housing Administration)
VA (Veteran's Administration)
USDA (United States Department of Agriculture)
Fannie Mae and Freddie Mac

Maze Each loan program has it's own guidelines and relative merits. For example, FHA requires only a 3.5% down payment and you do NOT need to be a first time home buyer, however, there are loan limits. The USDA (currently) does not require a down payment, however, the home must be located in a designated rural area. The Veteran mortgage does not require a down payment and the seller can pay all closing costs . . . but of course, you must me an eligible veteran to take advantage of the VA mortgage.

Banks and mortgage brokers do not offer every loan program!

There a few lenders who offer FHA, VA, USDA, Fannie Mae and Freddie Mac loans, however, lenders, both banks and brokers must be licensed or "approved" to offer FHA, VA and USDA financing. So if you seek out a lender for pre-approval, and the lender is not approved for say an FHA mortgage, it's unlikely the lender will say, "you need to speak to the lender down the street, because he offers FHA financing, we don't". Or let's say you're a vet and you want to use your eligibility and the lender doesn't participate in the VA program, again, the lender will probably steer you into a program that his company offers. So, the first step in he home buying process is to seek out a lender or lenders who can "pre-qualify" you under different mortgage programs.

Mortgage Program Comparison
Mortgage Program	Benefits	Downside
FHA Loan (Federal Housing Administration)	The FHA loan program offers a low down payment of 3.5%, no first time home buyer requirement, and the seller is permitted (not required) to pay up to 6% of the sales price toward closing, escrow and prepaid costs.	There are maximum mortgage amounts with an FHA mortgage. Proceed to FHA Limits page. There is monthly mortgage insurance (MIP), even if you make a down payment of 20%. FHA funding fee. Proceed to the FHA page.
Veteran Loan (VA)	No down payment requirement - "0". The seller is permitted (not required) to pay all closing costs. No monthly mortgage insurance premium (MIP/PMI)	All vets must pay a funding fee (except disabled vets).
USDA (United States Department of Agriculture)	No down payment requirement - "0". No mip or pmi, however this will change in a few months. The seller is permitted (not required) to pay up to 6% of the sales price toward closing costs.	The home must be located in a USDA defined "rural" area.
Fannie Mae & Freddie Mac	No mortgage insurance (PMI) with a down payment of 20% or more. No funding fee. Both Fannie Mae and Freddie Mac offers a low to moderate income or area program that competes with the FHA loan.	Private mortgage insurance is required for down payments less than 20%. Loans exceeding the Fannie/Freddie limits are known as Jumbo loans.
Bank Programs (Community Reinvestment Act - CRA)	Many banks (not mortgage brokers) offer "special financing" for home buyers who are at or below the median income limit for their county. The CRA programs also include low to moderate census tracts. These programs vary between banks, but can include lower closing costs, lower interest rates and reduced mortgage insurance.	Requires income limits or census tract designated as low to moderate.
Additional Resources Are you eligible for special financing? - First Time Home Buyer Programs Estimate your "ideal" mortgage payment - Debt to Income Calculator Here's a few comments to make you an informed home buyer - House Buying Tips Questions & answers on home buying - FAQ on Home Buying What are "closing costs" - PA Closing Costs Explanation What are points? - Mortgage Points What's a deed transfer tax & how much is it? - Explanation of PA Tax What's a Seller Assist? - Seller Assist

Photos used under Creative Commons from propertysnaps, jimbowen0306

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The calculators and information contained herein are made available to you as a self-help tool for illustrative use only. Examples are hypothetical. We can not and do not guarantee the applicability or accuracy in regards to your individual circumstances. I encourage you to seek personalized advice from qualified professionals.

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