How Does PHFA Work?
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Pennsylvania's First Time Home Buyer Program
PHFA Keystone Home Loan Plus Program has been discontinued ! ! !
Fortunately, the Keystone Home Loan Program (a.k.a. regular program ) is still available. Read more Think of the Pennsylvania Housing Finance Agency as a bank - not really, but you'll understand as you read on. But
before I get into an explanation of PHFA, it's necessary
to explain how the mortgage business works.
There are 4 popular mortgage programs:
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 designate 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. In a traditional mortgage application, you apply for a mortgage with either a bank or a mortgage broker for your loan. A competent loan officer will identify the "best" mortgage based on your income and needs.
Ok, so where does PHFA fit in? PHFA sits on top of the bank and mortgage broker, PHFA
provides the money for the mortgage. PHFA works with
approved banks and mortgage
brokers. You work through the banker or broker
as you would with the traditional mortgage application.
Your loan is underwritten to either the FHA, VA, USDA or
Fannie Mae and Freddie Mac guidelines and then passed on
to the Pennsylvania Housing Finance Agency (PHFA).
So PHFA is a bank? No, what happens is PHFA bundles up a bunch of mortgages and sells the mortgages to investors, however, the mortgage payment is paid to PHFA and the interest on the loan is forwarded to the investor. Additional Resources
LOAN PROGRAMS
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Loan Programs
What's a
Conventional mortgage? Mortgage Calculators
Payment
Calculator First Time Home Buyer ProgramsPA First Time Home Buyer ProgramsPHFA - PENNSYLVANIA HOUSING FINANCE AGENCYLearn about Pennsylvania First Time Home Buyer Program (PHFA)How PHFA works Phfa - Keystone Home Loan Phfa - Keystone Home Loan PLUS 2012 HUD Median Income Limits Closing Cost Assistance.pdf Keystone Home Loan Limits.pdf Keystone Plus Loan Limits.pdf FHA Resources
FHA
Funding Fee & MIP Explanation HELP?Do you have a burning question or problem? Post your Do you have a burning question or problem? Post your question on Trulia. After registering, you will be able to post a question; and Trulia will notify you by e-mail when your question was answered. DOWNLOADS
Home Buying VideosHere 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  |
The
Plus program was discontinued at the end of January 2012.
This program was designed for low income home buyers.
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