No Mortgage Insurance Mortgages
Mortgage Insurance – This is an insurance policy that the lender will purchase to protect them from you defaulting on your loan when you put less than 20% down. Unfortunately, you just get the pleasure of paying for it!
Depending on the type of mortgage you are looking for, the mortgage insurance can be quite expensive. Therefore, looking into this option can save you a substantial amount of money each month.
Introducing, the NO Mortgage Insurance Mortgage sponsored by PHFA. There are a bunch of rules, and they can be confusing, so I will break it down into two different sections. Again, this is where credit score plays a big role. There are income limits too so before you read on, you will have to make less than $97,800 per year for up to two people living in the house, or $114,100 for 3 or more people living in the house.
Now, for those of you with a credit score above 660 (this means the middle of three scores, or the lower of two scores on a tri-merged credit report) you can enjoy the following:
- 3% minimum down payment with at least $1000 coming from your own funds. The rest can come from an acceptable gift or down payment assistance program.
- Use of an online Home Buyer education certificate
For those of you with a credit score BELOW 660, here are the rules for you:
- 5% down payment of the purchase price with at least 3% coming from your own funds.
- Face to Face home buyer education is required through a PHFA-approved counseling agency.
This is a small price to pay for a substantial amount of savings. PLUS, this can be used in conjunction with the Keystone Advantage Assistance loan which can loan you 2% of the sale price up to $4000 for down payment and closing cost assistance.
Again, this can all get confusing so the easiest way to find out if you qualify for this type of financing would be to complete my FREE Pre-Approval form. This way I can determine what the best program would be for you and your particular situation. As always, please contact me with any questions.