Types of Home Loans Available in Pennsylvania

When deciding on the type of loan to apply for, there are a lot of different factors you’ll have to consider. For example, the amount of money you need to borrow and your credit score. These numbers and your specific situation might make one type of loan better suited for your needs.

Let’s break down some of the different types available.

Traditional Mortgage Loan
This is the most common type of mortgage loan that borrowers apply for at Griffin Funding. Traditional mortgage loans are typically used to buy a primary residence, a second home, a vacation home, or rental property.

FHA Loans for First-Time Home Buyers
If you are a first-time home buyer, Pennsylvania allows local mortgage brokers like Griffin Funding to provide premium Federal Housing Administration (FHA) loans that are insured by the U.S. government. All FHA loans are issued by lenders that have been approved by the FHA.

Advantages of FHA loans for first-time home buyers include:

  • Lower minimum down payment than standard mortgage loans
  • Doesn’t require an “excellent” or “good” credit score to qualify
  • Designed to assist individuals or families who have low to moderate incomes

Jumbo Mortgages
Jumbo mortgages are exactly what their name implies—large loans that exceed conforming loan lending caps. The 2022 conforming loan limit for a one-unit property is currently $647,2000 (in most areas of the U.S.).

Fixed-Rate Mortgage Loans
As full-service mortgage brokers in Pennsylvania, Griffin Funding offers mortgage loans at fixed interest rates that never change during the entire loan term.

When you qualify for a fixed-rate mortgage, you know exactly how much your monthly house payment will be, regardless of market fluctuations. Fixed-mortgage loans are also amortized loans, meaning monthly (or otherwise scheduled) payments apply to both the interest and the principal.

Adjustable Rate Mortgage (ARM) Loans
ARM loans carry variable interest rates that reset at yearly intervals. Homebuyers who plan to keep a mortgage loan for a short time often choose to apply for an adjustable-rate mortgage.

VA Loans
Griffin Funding helps veterans qualify for VA home loans for buying, improving, building, or refinancing a home. The VA offers a variety of loan programs that meet the needs of veterans and their families.

Refinancing a Mortgage Loan
Replace your current mortgage loan with a new loan called a refinance loan. Refinanced loans can be changed from 30-year terms to 15-year terms or modified from an adjustable rate loan to a fixed rate loan.

Refinancing not only lowers your overall monthly payments by consolidating debt but may help you pay off the loan sooner than you would have paid off the original mortgage loan.

Reverse Mortgage Loans
Homeowners who are at least 62 years old may be eligible for a Home Equity Conversion Mortgage for seniors (HECM, or reverse mortgage loan) if they have accumulated enough equity to borrow against their home’s market value.

Funds obtained from a reverse mortgage loan are available as a line of credit, lump sum, or monthly payments. Griffin Funding can provide HECM loans to qualified seniors.

USDA Mortgages for Rural Area Homebuyers
The U.S. Department of Agriculture (USDA) offers mortgages to rural Americans who live in areas with a population of less than 20,000.

Loan programs are designed for homebuyers with low to moderate incomes, disabled individuals, and seniors. Since USDA mortgages for rural homebuyers are 100 percent financed, the need for a downpayment is eliminated.

What are Non-QM Loans from Griffin Funding?

Pennsylvania mortgage loans provided by Griffin Funds offer non-qualified mortgage lender loans (non-QM loans) to home buyers who may not meet certain criteria necessary for qualifying for another type of mortgage.

Consider applying for a non-QM loan if you have a difficult time proving your income through traditional means like tax returns or W2s.

Bank Statement Loan
A bank statement is the only income requirement for this kind of non-QM mortgage loan. Some bank statement loan borrowers may need only one year’s worth of bank statements, depending on income and credit score.

Asset-Based Loans
Savings, checking, money market, or investment accounts can be used as leverage for securing an asset-based loan.

DSCR Loans
Debt Service Coverage Ratio (DSCR) loans are based on how much a borrower receives from their investment or rental properties.

Interest-Only Mortgage Loans
Having an interest-only loan means you just pay the interest on the loan for the first few years of the loan. When you ultimately start making monthly payments on the mortgage, your payments will be lower than they would have been at the start of your mortgage.

Secured Overnight Finance Rate (SOFR)
SOFR is the benchmark interest rate for loans established by transactions made by the U.S. Department of Treasury’s repurchase market. Whether SOFR impacts the cost of a mortgage depends largely on the type of home mortgage loan a person has.

How to Get a Mortgage Loan in Pennsylvania Through Griffin Funding

  1. Begin with a Discovery Meeting. We will determine what loan types you may qualify for and find the best interest rates available according to your credit score, monthly income, and how much of a down payment you can put down.
  2. Completion of the Loan Application. This is often done over the phone or online using Griffin Funding’s digital mortgage platform. The purchase agreement and proof of an earnest money deposit are required at this step.
  3. Locking In of the Interest Rate. We’ll get your interest rate locked at the lowest rate possible at this step.
  4. Application and Disclosures. You will receive the initial application and other documents through the digital mortgage platform or via overnight delivery—the choice is up to you.
  5. Mortgage Loan Processors. Griffin Funding loan processors will then evaluate your credit history, ability to make payments, and make sure the value of the home and asking price are comparable.
  6. Final Loan Document Signing. If you have made it this far, you’ll meet with a notary to sign all the final paperwork.

Areas We Serve

Griffin Funding serves all of New Jersey, including the following cities:

  • Abington
  • Bensalem
  • Philadelphia
  • Reading City
  • Upper Darby
  • Allentown
  • Erie
  • Pittsburgh
  • Scranton

What are the Current Pennsylvania Mortgage Rates?

Mortgage rates are constantly changing. Find the current Pennsylvania mortgage rates by contacting our of our Loan Officers.

What is the Minimum Down Payment to Buy a House in Pennsylvania?

Down payment amount requirements differ according to the type of mortgage loan you want and your financial status.

For example, while the FHA would like a prospective home buyer to put down 20%, they may allow the home buyer to put down as little as 3.5%. VA loans do not require a down payment.

Begin the application online or request a free quote today!

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Apply for a Mortgage Loan in Pennsylvania at Griffin Funding Today

Griffin Funding is among the top Pennsylvania mortgage lenders in the state. You can depend on us for locking in competitive interest rates, enjoying 5-star customer service, and knowing our loan officers are the best in the business.

Contact us today to get started on buying that dream home you’ve always wanted or apply online.