Mortgage in Pennsylvania
Home to two excellent cities, Pittsburgh and Philadelphia, Pennsylvania has seen a surge of interest in recent years. Thanks, in large part, to relatively inexpensive housing costs (especially in the more rural markets), the cost of living in Pennsylvania is below the US average . If you're thinking of moving to Pennsylvania, use our Pennsylvania mortgage calculator to see how much you can expect to pay on your housing a month.
Pennsylvania Mortgage Calculator: See Your Potential Loan Types
If you're considering moving to Pennsylvania, you should know that there are three possible loan types that you can get.
- Pennsylvania conventional mortgage: Since housing costs in Pennsylvania tend to be on the lower side, prospective homeowners can get a conforming traditional loan (homes less than about $550,000 qualify). These loans require as little as 3% down, can have a debt-to-income ratio of 50% or lower, and require a credit score of 620+.
- Pennsylvania FHA mortgage: You will find many homes under the FHA limits in Pennsylvania, so these loans are a fantastic option for people with a less-than-perfect credit score. The score you need depends on the amount you can put down. If you can put 3.5% down, you need a credit score of 580+. Alternatively, if you can put 10% down, you can have a credit score as low as 500.
- Pennsylvania VA mortgage: People in the military can get VA-backed mortgages with as little as 0% down and no private mortgage insurance.
The above mortgage types are available to all current and prospective Pennsylvania residents. However, if you are a first-time homebuyer in Pennsylvania, there are additional programs to help you stop renting and start owning!
First-Time Homebuyers in Pennsylvania
The Pennsylvania Housing Finance Agency administers a few programs to help people own a home.
For eligible buyers, the state of Pennsylvania offers loans with competitive interest rates and lower fees. You can use the other assistance options with a PHFA first loan.
Eligibility Criteria: Income and purchase price restrictions apply. Additionally, buyers with a credit score below 680 must complete a homebuyer education course.
The Keystone Advantage Assistance program provides eligible borrowers with a second loan that provides 4% of the purchase price as a ten-year loan at 0% interest. You will also need to make monthly payments on this second mortgage. Finally, the maximum loan amount is $6,000.
Eligibility Criteria: Borrowers must have a minimum credit score of 660. Asset restrictions apply (borrowers cannot have more than $50,000 in liquid assets).
Mortgage Credit Certificate
This credit certificate permits homebuyers to claim a non-refundable tax credit between 20-50% of the mortgage interest paid per year. Additionally, the maximum amount you can receive is $2,000.
Eligibility Criteria: Borrowers must meet the requirements of the PHFA mortgage program. Further restrictions may apply depending on the original loan.
Pennsylvania Mortgage Calculator: Calculate How Much You Will Pay
Pennsylvania tends to be one of the lower cost of living states, which makes homeownership more affordable. However, it's still essential to calculate how much you could pay per month for a home or condo. Fortunately, our intuitive Pennsylvania mortgage calculator makes that easy!