When it comes to borrowing money to pay for a home, buyers have many choices for financing including conventional and government program mortgages. Patriot offers three Government Insured Program Mortgages that are ideal for most first-time home buyers. They include:
Federal Housing Administration (FHA) Insured Mortgage
An FHA mortgage is a very popular first time-home buyer loan option. Credit score and credit requirements are generally more lenient than they are for a conventional loan. An FHA loan only requires a 3.5% down payment. However, FHA loans require a monthly mortgage insurance premium, which will never drop off unless you refinance out of an FHA loan.
United States Department of Agriculture (USDA) Guaranteed Mortgage Loan
The USDA has designated all of Franklin and Fulton counties in Pennsylvania, and most of Washington County, Maryland as eligible for their no money down, 100% financing. USDA guaranteed mortgage loans generally have more lenient credit standards and a very competitive interest rate. USDA loans have an up-front insurance premium that can be financed in the loan in addition to a monthly mortgage insurance premium which will be included in the monthly payment for the life of the loan. There are restrictions on this loan, call us to see if you can qualify for this increasingly popular program.
Veterans’ Administration (VA) Guaranteed Mortgage
Created in 1944 by the U.S. Government to help returning service members purchase homes, the VA Guaranteed Mortgage program has helped more than 20 million veterans and their families with an affordable home financing situation. Although there are certain eligibility requirements that must be met to qualify, the VA Loan has distinct advantages over traditional mortgages, such as requiring no down payment and competitive interest rates.
Maryland Mortgage Program
The Maryland Mortgage Program, offered through a partnership with the Department of Housing and Community Development for the state of Maryland, provides competitive financing options to homebuyers purchasing in Maryland. Alongside 30-year fixed-rate financing, the Maryland Mortgage Program also offers a range of associated financial incentives and down payment and closing cost assistance options which, for many homebuyers, means the difference between being able to purchase and continuing to rent.
Home Purchase Assistance Loan
Offered in partnership with the PHFA to qualified borrowers in Pennsylvania and with the Maryland Mortgage Program in Maryland, the Home Purchase Assistance loan is an interest-free loan to cover down payment and/or closing costs to purchase single family homes. It may be used in combination with any of Patriot’s other mortgage loans including conventional and government-underwritten programs through the PHFA, FHA, VA, and USDA.
For more information about Patriot’s Government Insured Program Mortgages, you may call 717-709-2580 or 888-777-9982 to speak with a Mortgage Loan Officer. We’ll help you find a loan program that fits your particular situation the best. You can also check out the home loans section of our learning center blog for tips on buying, selling, and renovating homes.