I Hope there is someone out that can help! My wife and I are financing our first home and I have some questions regarding PHFA versus FHA.

Asked by Mike, Center Valley, PA Thu Apr 26, 2012

Do you have to pay PMI via a PHFA loan? If so, how is it calculated? Also, is there a funding fee for PHFA loans( e.g FHA is charging 3500 right now ). Thanks for the help!!

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Carol Cei’s answer
Carol Cei, Agent, Maple Glen, PA
Thu Apr 26, 2012
Hi, Mike,

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
Web Reference:  http://Www.carolcei.com
1 vote
Carol-thank you so much for the quick response! It came as a huge surprise to my wife and I when we found out that the PMI MIP was nearly 200 dollars a month!!! Our lender never explained this to us!!! I'm so fed up right now.....
Flag Thu Apr 26, 2012
Kathy Hanigan, Agent, Huntingdon Valley, PA
Sat Apr 28, 2012
Please call me at 215-327-8104 and I will be glad to answer all of your questions.
Kathy Hanigan, Broker
0 votes
Dmytro V. Bo…, Other Pro, Havertown, PA
Fri Apr 27, 2012
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: 610-348-8389
Tel: 610-449-1919 x.223
Licensed In Pennsylvania
0 votes
Philip J. Cu…, Agent, Feasterville, PA
Fri Apr 27, 2012
Mike you need to ask your Mortagage Company or Bank represenative your questions and 5the best two reasons are they are the ones who will be responsable for doing the mortagage and the person you are PAYING to represent you when it comes to the mortagage and Note also pick someone who speaks in wards not letters like MIP,MI,LTV,CLTL and if someone tells you they don't know what CLTL is belive them because I think I made it up but what it stands for is credit limit to loan. the second is keeping you information confidential. When you ask a question in Real Estate there are always confidential questions that are asked in return and on the internet you are talking to the world.

Philip J. Cunningham Sr
0 votes
Community Mo…, Home Buyer, Philadelphia, PA
Fri Apr 27, 2012
Yes you have PMI with a PHFA loan.....my question to you is, are your credit scores over 640?

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.
0 votes
Gita Bantwal, Agent, Jamison, PA
Fri Apr 27, 2012
The best way to find detailed information is to sit down with a lender and see what the costs and monthly payments are. The others have given you good information.
0 votes
, ,
Fri Apr 27, 2012
PHFA is actually a loan that is underwritten as an FHA loan and then PHFA agree to help with the down payment. so the same rules apply. Technically you can get conventional loans thru PHFA but this does not happen too often

0 votes
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