Kelly Leighton

Last Updated: November 26, 2019 | View all posts by Kelly Leighton

Is covering down payment and closing costs a challenge for your clients?

The Pennsylvania Housing Finance Agency has mortgage options that could assist your clients to secure financing and minimize the challenge of covering funds for closing. For over 35 years, PHFA has provided affordable home loan programs for those seeking homeownership in the commonwealth. Almost 50% of PHFA’s loan production is paired with down payment and closing cost assistance. Borrowers may be eligible for assistance not exceeding 4% of the purchase price or appraised value up to $6,000, whichever is less, to use for down payment or towards closing costs. This interest-free loan amortized over a 10-year term is available to eligible buyers with a middle credit score of at least 660. This assistance can only be used with one of PHFA’s first mortgage products.

Have you ever come across buyers who are hesitant to purchase a home because of excessive repairs?

PHFA offers renovation programs which allow eligible homebuyers purchasing a home to repair, remodel, renovate or complete energy improvements within the same mortgage transaction. Eligible buyers seeking conventional financing may receive up to 75% of the “as completed” appraised value of the property. Those funds can be used toward repairing the roof, updating the kitchen or improving an existing living space. The buyer can add their personal touch to the property and make it their own. Depending on the extent of repairs, PHFA has a secondary repair option providing up to $15,000 for repairs and/or improvements for conventional purchase loans within one transaction. This program also allows the buyer to make needed repairs right away, without having to take out another loan at a higher rate and with a shorter repayment period. The program’s benefits include flexibility and low cost—down payments can be as small as $1,000. Plus borrowers avoid fees and closing costs associated with taking out a second mortgage.

What if your buyer has a permanent disability and cannot find a home that fits their needs?

PHFA provides financial assistance to people with disabilities, or who have a disabled family member living with them, so they can purchase a home and make it accessible according to their needs. Their home modification program is a non-interest-bearing loan with no monthly payment that is limited to no less than $1,000 and no more than $10,000. These funds can be used toward modifications such as: widening doorways/hallways, installation of grab bars, lifting devices and lowering counters. Repayment of this debt is only required upon the sale, transfer (except by inheritance or between spouses) or non-owner occupancy of the property. This option could open many doors for folks who want to reside with elderly parents or household members who may require home modifications to make the home more accessible for daily living.

Visit www.phfa.org  to learn more about the home loan products available. Or call our customer solution center at 855-827-3466, Monday through Friday, 8 a.m. to 5 p.m. for additional information.