PHFA is actually the funding source for an FHA loan. People go to PHFA because they have the $3,000 second mortgage to help with down money or closing costs. The bank or lender you are working with will underwrite the loan and package it up to go to the state for a final approval. Your lender will close with you and fund the loan, but then immediately sell it to the state and the state will become the services of the loan.
So, in, short, the underwriting guidelines are FHA guidelines, but the state is not necessarily credit score driven and will look at things on a case by case basis. I don't know what funding fee you speak of. Do you mean up front MIP? That has always been a part of FHA loans - but now it is higher. You can finance it itn your loan-most people do.
Hopefully, your loan originator will take some time to discuss these things with you. If you need a lender how is very knowledgeable about PHFA, just let me know and I will give you my best guy, Steve Bamberski of Sovereign Bank.
All the best
Carol Cei, Realtor, ePRO
ReMax Platinum Club
5 Star Professional
ReMax Actioin Realty
I can refer you to several mortageg professionals to discuss this in detail.
Perhaps, you could also get your pre-qualification letters as well.
At that point - lets find you a property that fits your needs.
Please feel free to contact me any time.
Dmytro V. Bova
Realty Mark - The Diamond Group-Real Estate Sales
Main Line Investors Group - Property Management
700 E. Township Line Road, Suite 100
Havertown, PA 19083
Tel: 610-449-1919 x.223
Licensed In Pennsylvania
Philip J. Cunningham Sr
If so, contact me so I tell you about my conventional mortgage product with 3% down payment with NO MI.............yes NO MI.
If you are doing a PHFA/FHA mortgage then you will have up front MIP. You can also do a conventional mortgage with PHFA.