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PA Home Purchase. Pennsylvania Home Mortgages
With your credit score of 620 minimum, we offer home loans in PA at low rates with low fees.
- 10-40 year fixed in 5 year increments
- Purchase of PA Primary Residences, second homes, and 1-4 unit investment properties
- Purchase primary residence home and finance cost of improvements.
- Renovation loans
- Purchase from family and save transfer tax
- We can help you structure private family real estate transfers so no money is needed by purchaser.
- We will shop your loan with our many wholesale lenders at no extra cost
- $80,000 minimum loan amount
- Float down option.
- Fast Closings! Close in as soon as 2 weeks with your transferred appraisal.
and more... Please contact us anytime for more information or call 866 577-PENN (7366).
Below is the universal matrix for home purchases. Fannie Mae and Freddie Mac both use this matrix. It is required for all conventional (non-FHA) loans. It shows the additional closing costs, if any. For example .25 would be an extra $250 at closing, one time. A lower or higher appraisal than expected could cause a change in the locked in terms based on the Matrix below.
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Fee for conventional loan based on Credit and LTV: |
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| Credit Score |
LTV <=60% |
LTV 60.01-70% |
70.01-75% |
|
75.01-80% |
80.01-85% |
85.01-90.0% |
| 740+ |
-0.5 (discount) |
0.0 |
0.0 |
|
0.0 |
0.0 |
0.0 |
| 720-739 |
-0.5 (discount) |
0.0 |
0.0 |
|
0.25 |
0.0 |
0.0 |
| 700-719 |
-0.5 (discount) |
0.5 |
0.5 |
|
0.75 |
0.5 |
0.5 |
| 680-699 |
-0.25 (discount) |
0.5 |
1.0 |
|
1.5 |
1.0 |
0.75 |
| 660-679 |
-0.25 (discount) |
1.0 |
2.0 |
|
2.5 |
2.25 |
1.75 |
| 640-659 |
0.25 |
1.25 |
2.5 |
|
3.0 |
2.75 |
2.25 |
| 620-639 |
0.25 |
1.5 |
3.0 |
|
3.0 |
3.0 |
2.75 |
Example #2:
Someone borrowing $200,000 with a $265,000 sales price, with a 630 middle credit score would incur .03% x $200,000 = $6,000 fee at closing, one time, that they would not incur if their credit score was higher or down payment were greater.
How to save money and avoid these fees:
A borrower can avoid these fees by obtaining a FHA loan. The FHA fees should be compared to the conventional fees.
A borrower can also lower their loan amount by increasing the down payment to reach the next lowest tier. In Example #2, at 75.5 LTV, by reducing the loan amount to $182,000 (70% LTV), the borrower would save 1.5% fee, or $2,130.
How finance the fee:
These fees could be paid for by an increase to the interest rate if the borrower prefers. Each .125% increase in rate usually equals .5 points.
Why these fees are charged:
Fannie Mae and Freddie Mac implemented these fees in 2004 when the foreclosure crisis began. Their risk models have shown the above chart reflects the risk of default (statistical measure of those who do not pay their home loan) based on the above parameters.
Shopping among lenders will not change these fees:
Every lender must use the above matrix for every conventional mortgage.
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