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When home buyers begin house hunting, they often find that the home buying journey can be a lengthy process. Finding a place with the right combination of must-haves and nice-to-haves can be complex and time consuming.  How much square footage is needed?  Should the property be close to parks, shopping, or services?  Will the commute to work be acceptable?

These types of questions are important, but they can be overshadowed by the possibility of rising mortgage rates as buyers apply for a home loan.  While interest rates should not be the only concern when obtaining home financing, the rate does have an impact on the loan amount for which a buyer can be approved.  Quite simply, a lower interest rate can mean more buying power.

When interest rates change, we still want our clients to be able enjoy an exciting path toward homeownership, not one filled with anxiety about rising rates.  That’s why current home buyers may be interested to learn about the Pennsylvania Preferred Buyer Advantage: Lock, Shop & Home loan program, which provides an opportunity to counter the worry of rising interest rates.

The Pennsylvania Preferred Buyer Advantage1 allows buyers to get much of the home financing process out of the way and obtain a Commitment Letter, which can help set their purchase offer apart from other offers a seller may be considering.  Participating in the Pennsylvania Preferred Buyer Advantage costs nothing additional and can help prevent last-minute issues with home financing, so buyers can enjoy an on-time loan closing.

What’s more, Lock, Shop & Home allows buyers to lock in an interest rate for up to 90 days at TODAY’S rate instead of waiting to lock in a rate only after they have found a home to purchase.  Here are a few highlights:

  • No property address is needed at the time of application and rate lock.
  • Lock an interest rate up to 90 days.2
  • Conforming and high balance loan amounts are available.
  • May be used with conventional or government fixed rate loan programs.3

 

Want to learn more about the Pennsylvania Preferred Buyer Advantage: Lock, Shop & Home loan program and see if it's the right fit for you? Contact a mortgage consultant near you!

 

 

 

 

1. Pennsylvania Preferred Buyer Advantage is not a loan approval. Ask your mortgage consultant for details about Pennsylvania Preferred Buyer Advantage. A Commitment Letter is based on information and documentation provided by you and a review of your credit report. The interest rate and type of mortgage used to approve you for a specified loan amount is subject to change, which may also change the terms of approval. If the interest rate used for credit approval has changed, you may need to re-qualify. Information provided by you is subject to review and all other loan conditions must be met. After you have chosen a home and your offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment.  Additional documentation may be required.

2. Additional fees may apply.

3. Lock, Shop & Home program is not available for bond, jumbo, or renovation loan programs.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


HomeBuyer Boost is Back

Jan 30
4:47
PM
Category | PA Preferred News

At Pennsylvania Preferred Mortgage, we are committed to helping responsible, creditworthy buyers achieve the goal of homeownership. In 2017, we offered the HomeBuyer Boost program in which our clients qualified for closing cost assistance.

Now, we are excited to announce that we have extended the program to continue offering closing cost assistance for qualified, low-to-moderate income borrowers through May 31, 2018!  As before, the additional incentives are combined with a conventional loan with flexible terms, plus an additional Boost.  Take a look:

  • Low down payment available up to 97% financing for purchase of a primary residence (1-unit properties).
  • Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit properties).
  • Income from all borrowers on the loan must be used to qualify. Income may not exceed 100% of the HUD area median income for the property’s location.1
  • Extended-income household may allow non-borrower income to be considered toward the borrower’s debt-to-income ratio when qualifying the borrower for the mortgage.2
  • Reduced Mortgage Insurance coverage requirements for loans with loan-to-values (LTV) greater than 90%, up to 97%.
  • Homeownership education helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership.  The required training offers an easy-to-use, online course provided by Framework.

 

HomeBuyer Boost Incentives:

  • $1,000 program credit toward closing costs for clients who are at or below 80% of the area median income limit.3
  • $500 program credit to borrowers who get one-on-one homeownership education through a HUD-approved counseling agency prior to signing a purchase contract.4
  • Job loss protection for 2 years for eligible borrowers through MortgageAssureSM. This unemployment insurance can help cover up to 6 monthly mortgage payments in the event of an involuntary, unexpected job loss, to help borrowers avoid falling behind or defaulting on their mortgage.5

 

If you have more questions about our HomeBuyer Boost incentives, one of our mortgage consultants would be happy to speak with you.  Or, if you are ready to begin your loan application, apply on-line here!

 

 

 

 

HomeBuyer BOOST may not be the best mortgage product for all borrowers. Please consult your mortgage consultant to discuss your financing options.

1. Except for properties located in a low-income census tract.

2. Non-borrower income must be at least 30 percent of the total monthly qualifying income being used by the borrower(s). The non-borrower must 1) document his or her income, and 2) sign a statement of intent to reside with the borrower(s) for a minimum of 12 months. Other terms, conditions, and requirements may apply.

3. Borrowers are able to use program credit toward closing costs only. Excludes down payment assistance. All incentive offers valid on complete loan applications received between 01/01/2018 and 05/01/2018. Loan must close by 05/31/2018 or within 60 days from the date of loan application, whichever takes place first. This offer may not be used with any other offers.

4. Borrowers are not eligible for additional program credits if minimum borrower contribution is exceeded.

5. Radian MortgageAssureSM is available with borrower-paid mortgage insurance (BPMI) only. Radian MortgageAssureSM will provide up to 6 monthly mortgage payments, for a maximum monthly benefit of up to $1,500 or total protection of $9,000 during the two-year coverage period. Benefit is automatically provided on Radian-insured loans for primary, owner-occupied, single-family homes with loan-to-values of 95.01% - 97%, that meet the program guidelines.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


If you are considering the possibility of purchasing a home this year, you may have heard that renting is a smarter choice than buying for a number of reasons. For many people, however, that is not always true.  Deciding whether renting or buying is right for you depends on your individual options and circumstances.  To help you learn more, here are a few myths that explore renting versus owning a home:
 
Myth No. 1: You can’t afford a down payment.

Many would-be homebuyers opt for renting believing that they won’t be able to save enough for a 20 percent down payment. But in reality, not all loan programs require a 20 percent down payment. Different loan programs require home buyers to put down different amounts as low as 10 percent, 5 percent, or even 3 percent.  In fact, some programs require no money down, and in some areas, down payment assistance programs are also available.
 
Myth No. 2: Renting is cheaper.

This statement depends on your rent and the home values in your area.  But even if your monthly mortgage payment ends up being a little higher than what you might have paid in rent, that money is going toward your own long-term financial investment. When you pay rent, you are making your landlord’s mortgage payment rather than your own.  Talk to a mortgage consultant to determine a monthly payment with which you are comfortable, and compare it to the cost of renting to determine which is right for you.  Or, use our Rent vs. Buy calculator to get started!
 
Myth No. 3: You won’t recoup your money.

Real estate is often considered to be a safe long-term investment because home values have historically risen over time. Yes, the housing market may go through cycles, but if you plan to be a homeowner for a long time, your home can build equity and prove to be a wise investment.
 
Myth No. 4: Renting is less of a hassle.

While you may have less vested in a rental property, the work you put into turning a house into your home can be a richly rewarding experience. Not only can you create a home that suits your preferences without the concern of a landlord’s limitations, improvements you make to the property can also help build upon your initial investment.
 

 

If you’d like more homeowner information, please contact a mortgage consultant near you!

 

 

 

 

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


Home Buying Basics

Dec 15
5:12
PM
Category | PA Preferred News

Buying a new home can seem overwhelming.  But knowing what to expect – and having a knowledgeable team of real estate and mortgage-lending professionals to assist you – can help make finding and financing your home an exciting and rewarding experience.  Here is a basic overview of the home buying process:

1. Obtain a mortgage preliminary approval before you begin house hunting.

  • Learn how much home you can purchase.
  • Strengthen your bargaining position with sellers.

2. Work with your real estate agent to find the right home.

  • Determine your needs and create a wish list of desirable features.
  • Take notes as you preview homes.

3. Make a purchase offer on a home you like.

  • Your real estate agent presents your offer to the seller, who will then choose to accept, counter or reject the offer.
  • When the price is settled, you and the seller sign a Purchase Agreement, defining the terms of the sale.

4. Complete the loan application process.

If you have already obtained a mortgage preliminary approval, contact your lender and let them know you have a contract on a home. Your mortgage consultant will update your loan application and help you to proceed with the home financing process.

5. Have the home inspected.

If you choose to have a home inspection, hire a professional home inspector after the offer has been accepted to provide an in-depth look at the basic systems of the house, which can reveal safety hazards and give you a chance to reconsider the deal.

6. The home will be appraised.

An appraisal, required by your mortgage lender, is a formal, written estimate of the home’s current market value.

7. Obtain title insurance. (where applicable)

Title insurance guarantees the property you are purchasing is free of liens or confusion in rights of ownership, and it also insures against any losses to the property that result from defects in the title or deed.

8. Close on the property.

  • A closing agent coordinates and distributes all the paperwork and funds.
  • Ownership of the property is transferred.

 

And you become the proud owner of your new home!  Our team of mortgage professionals is available to guide you every step of the way to help ensure your home buying process is a smooth one.

Contact a local mortgage consultant, today!

 

 

 

All first mortgage products are provided by Prosperity Home Mortgage, LLC, dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC, dba Pennsylvania Preferred Mortgage. All Rights Reserved.


FHFA Announces Higher Loan Limits for 2018

As the result of a higher average U.S. home price in 2017, the Federal Housing Finance Agency (FHFA) has announced new, higher maximum conforming loan limits for 2018.

In most areas of the country, the 2018 maximum loan amount for one-unit properties will be $453,100, an increase from $424,100 in 2017.  In high-cost areas, the new maximum high balance loan limit will be $679,650, up from $636,150.

As in the past, loan limits may vary by county. Click here for a list and map of the 2018 maximum loan limits for all counties and county-equivalent areas in the U.S.

New Conforming Loan Limit Sample:

   2018 Conforming Loan Limit   

   Sales Price High   

   Down Payment Amount   

$453,100

$467,113

3%

$453,100

$566,375

20%

 

New High Balance Loan Limit Sample:

   2018 High Balance Loan Limit   

   Sales Price High   

   Down Payment Amount   

$679,650

$715,421

5%

$679,650

$849,562

20%

Contact your mortgage consultant directly if you have questions on local limits or other home financing options.

 

 

 

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


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