“Homebuyers in today’s market are faced with obstacles that can prolong, or even prevent, homeownership,” said Pennsylvania Housing Finance Agency Executive Director and CEO Brian Hudson. “Housing resources offered by PHFA may be used to assist potential homebuyers who want to become homeowners.”
PHFA and its statewide network of housing counselors provide potential homebuyers with an opportunity to become mortgage-ready, and they offer first mortgage financing that provides down payment and closing cost assistance, which may ease the difficulty of moving forward with homeownership for some families, said Hudson.
The agency provides free homebuyer education counseling for residents across the commonwealth. “Our approved counseling agencies can evaluate mortgage readiness, analyze credit and improve money management skills. It’s very beneficial, especially for first-time homebuyers, to receive homebuyer education before purchasing a home,” said Hudson. “PHFA wants homebuyers to be informed about the credit obligation involved with purchasing a home, so we provide information to produce successful homeowners.”
If you have homebuyers struggling to afford a down payment and closing costs, PHFA may be able to help. Hudson said PHFA offers qualified homebuyers 4 percent of the purchase price or $6,000, whichever is less, in the form of down payment and closing costs assistance when used with a PHFA 30-year, fixed-rate first mortgage. The assistance provided is an interest-free loan amortized over a 10-year term.
“PHFA has a network of more than 80 approved participating lenders throughout the state that are knowledgeable and up-to-date on PHFA program guidelines,” added Hudson. “Approved lenders will determine a buyer’s eligibility and place them into the best quality loan product, and they will process and close all PHFA home loans. Those mortgages are then purchased and serviced by PHFA. PHFA borrowers will make their payments directly to the agency for the life of their mortgage.”