FHA Mortgages
FHA Loans In Williamsport
Click to apply online with Principle Home Mortgage
ABOUT
Principle Home Mortgage has great FHA home loans to offer in Williamsport, PA and the Lycoming County region as well as other mortgage loan products, from VA to conventional. FHA (Federal Housing Administration) home loans are ideal for many buyers, but certainly those looking for a low down payment option. Borrowers will be pleased with the upfront costs of obtaining an FHA mortgage due to the FHA’s seller concessions, minimum down payment, and interest rates. This product does have some restrictions, but fewer than USDA or VA loans. An FHA loan is available in forward purchases, renovations, and refinances.
PRODUCT HIGHLIGHTS
- Seller Assist: Maximum of 6%
- Agency: Federal Housing Administration
- Max Loan-to-Value On Purchase Transactions: 96.5% on purchase transactions; 97.75% for rate and term refinances; 85% for cash-out refinances
- Max Loan Amount: Depends on the home’s location (see link for map below)
- Mortgage Insurance Premium: Varies, but begins at 0.85% of the loan amount with the minimum required down payment; remains for the life of the loan if less than 10% is provided as a down payment
- Upfront Mortgage Insurance Premium: Required 1.75% of the loan amount and it can be financed
- Max Income: No limitations
- DTI Requirement: 43% but fluctuates by lending bank; can be significantly higher with an automated underwriting approval. (see link below for more information on automated underwriting)
- Credit Requirement: Varies by lending bank; can be lower than expected with an automated underwriting approval.
- Down Payment Requirement: As little as 3.5%
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PRODUCT BENEFITS
- The FHA guarantees your home loan: An FHA home loan is guaranteed by the Federal Housing Administration, unlike other mortgage products. This guarantee is promised to the private lender in the case of foreclosure, resulting in less risk to the lender because the lender is able to recover most or all of their investment. For the prospective homebuyer, this can result in a better chance of obtaining the loan under better terms than other loan products.
- Low down payment: The low minimum down payment for an FHA home loan is 3.5% of the sales price. Please note that if the appraised value is less than the contracted sales price, the borrower will need to pay that difference plus the down payment. It’s important to remember the difference between closing costs and down payment.
- Lower credit score requirement: Comparing an FHA loan to USDA/Rural Housing home loans or conventional loans, it’s common to see borrowers with lower credit scores can have an easier approval process.
- Better interest rates than conventional loans at lower credit scores: FHA interest rates are typically lower than interest rates for conventional loans when comparing at the same credit score and down payment scenario.
HOW DO I APPLY?
The application process an FHA loan is very similar to other loan products, and easy if you’re prepared with the right documentation. You will need 2 years tax returns and W2s, 2 recent months bank statements, 2 forms of ID, and 30 days of paystubs. Self-employed borrowers can expect that these requirements will vary slightly. Various guidelines are required by FHA, but some lending banks will allow non-traditional credit with additional requirements. To find out if your eligible for a low down payment FHA home loan in Williamsport, PA and the Lycoming County region, reach out to Principle Home Mortgage at (814) 308-0959 to discuss your home financing needs.
RESOURCES
See what the maximum loan amount is in your area
Apply online with Principle Home Mortgage
Visit the FHA homepage for more information on FHA Home Loans