PHFA mortgages are serviced by the Pennsylvania Housing Finance Agency (PHFA), and they’re a great option for many types of borrowers. Whether you’re looking to buy your first home but don’t have much of a down payment, or you’re ready to refinance and lower your monthly payment, a PHFA mortgage could be right for you. We’ll cover everything you need to know about PHFA mortgages in this post.
What are PHFA mortgages?
PHFA mortgages are home loans that the PHFA services. These loans are available to first-time home buyers, disabled persons, low-income residents, and others looking to make homeownership more affordable. Some major benefits of choosing a PHFA mortgage include:
- Competitive interest rates
- 30-year, fixed-rate terms
- Able to use with conventional, FHA, and other common loan types
- Down payment and closing cost assistance options
- Special programs for persons with disabilities
What mortgages are offered, and how does it work?
If you read our previous post about the pros and cons of different types of mortgages, you’re already on your way to finding the right loan for you. That’s because PHFA offers all the types of mortgages you’re familiar with, from conventional to government-backed loans like FHA, VA, and USDA.
The PHFA works with a network of public and private lenders (like Team Hadley). These lenders process your mortgage application and close your loan. Immediately after this, the PHFA buys your loan from the lender, so you make your mortgage payment directly to the PHFA for the life of your loan.
Why choose a PHFA mortgage?
On top of helping you find the right loan based on your situation, the PHFA offers additional benefits like down payment and closing cost assistance programs, refinance options, and home improvement/repair loans.
A breakdown of PHFA mortgages
The loan that’s right for you depends on your financial circumstances, including your credit history, available cash savings, and other factors. The PHFA offers a variety of conventional and government-backed loans, so it’s important to consult with a participating lender who can guide you in the right direction.
HFA Preferred
This 30-year, fixed-rate mortgage is available through a network of approved lenders. You can take advantage of this loan even if you’re not a first-time buyer. Though you must fall within specified income limits, this program offers up to an additional $600 credit that you can use toward the cost of your property appraisal. If you’re able to put at least $1,000 down and are looking for a conventional type of loan, set up a chat with Team Hadley to see if the HFA Preferred is right for you.
Keystone Home Loan Program
Whereas the PHFA backs the HFA Preferred loan, the Keystone Home Loan Program offers loans backed by the federal government. Again, you must walk within the specific income limits set for your county, but these mortgages offer all the benefits of FHA, VA, and USDA loans. These are perfect if you need a low- or no-down-payment loan. Check with Team Hadley to see if an FHA, VA, or USDA loan suits you.
Keystone Government Loan
This is similar to the Keystone Home Loan Program, except the PHFA sets no income or purchase price limits. You’re not required to be a first-time home buyer, and you can use this loan in conjunction with the Keystone Advantage Assistance Loan, which gives you an interest-free loan of up to $6,000 to help cover down payment and closing costs. A participating lender determines your eligibility, so contact Team Hadley to see if you qualify.
PHFA assistance programs
In addition to offering different mortgage loans, the PHFA can provide down payment and closing cost assistance.
- Keystone Advantage Assistance Loan: Get an interest-free loan of up to $6,000
- K-FIT Loan: Get a loan of up to 5% of the purchase price or appraised value of your home, which is forgiven 10% per year (fully forgiven in ten years)
Refinance loans
The PHFA also offers refinance options through HFA, FHA, and VA loans. These allow you to reduce your monthly mortgage payment to help you save more money or ease any financial stress you’re feeling. Take a look at the PHFA’s refinance loans.
Get into your new home with a PHFA mortgage
You can be standing on the doorstep of your new home today with a PHFA mortgage from Fairway Independent Mortgage and Team Hadley. Fairway is a participating lender, so contact us, and we’ll help get you started!
Still curious about the home buying process?
Download our free Path to Homeownership Guide, and discover everything you need to know about the buying journey.
