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Philadelphia Home Purchase Loans Low Rates with FHA in Pennsylvania Financing
Philadelphia home buyers have more options with qualifying for low rate FHA home purchase loans to help them lock in buying a new home.
The credit crunch on Wall Street and record foreclosure rates have made investors nervous about home buyers who have small down payments and lower credit scores. According to Philadelphia-based mortgage lender and real estate broker Fred Glick, Fannie Mae and Freddie Mac are looking for credit scores of at least 660. And, that's if you have 20% down. If you have less than 20% start-up equity, they want a score of at least 700.
However, FHA home buying is making a roaring comeback. The new, higher FHA loan limits of up to $420,000 make Philadelphia home financing much easier, especially since FHA still has reasonable lending guidelines. They only require a score of at least 580, and you only need a 3% down payment. Even with credit problems, you still get low, fixed interest rates with FHA. And, you can do a FHA streamline refinance if the interest rates drop with 97 percent loan to value.
How about Buying a HUD House?
Philadelphia home purchase loans with FHA can also be used to buy U.S. Department of Housing and Urban Development (HUD) homes. In an effort to increase the affordability of homeownership, the Federal Housing Administration (FHA) is announcing sales incentives on purchases of HUD Homes in Pennsylvania.
These incentives are available on HUD Homes through September 30, 2008. HUD homes are foreclosed on FHA and VA loans. And, unlike other foreclosures, HUD homes are offered to owner occupants first before investors so you stand a better chance to win the bidding process.
FHA has a loan for rehabilitating and repairing properties called the Rehabilitation Loan program or 203(k) for properties that need repairs. You can get a single mortgage loan that combines the mortgage and the cost of repairs.
To get a HUD house, you’ll first have to get a HUD registered real estate broker. HUD homes can only be accessed by HUD brokers and HUD brokers are the only ones who can submit your offer to HUD.