Real Estate 101

As a leader, we are always seeking new methods to serve the housing and community needs of all Pennsylvanians.

Below is some valuable information for you to view, that can help you SAVE MONEY. Make sure you go to the bottom of the page for information about your FREE CD!

MAXIMUM RESIDENCE PURCHASE PRICES, INCOME LIMITS, AND TARGET AREAS

* These counties contain one or more targeted census tracts.

The maximum purchase price for a two-unit property (duplex/double) cannot be greater than ten percent higher than the current single-unit limit.

PLEASE NOTE: Purchase price limits, income limits, target counties, and other criteria may change at any time without previous notice. For the MOST current information, please contact us.

You may be eligible for a Keystone Home Loan if you meet the following six conditions:

1. You are not a first-time homebuyer, but you plan to buy a home in a Targeted county or area. Target counties are indicated by a "T" in the listing of Purchase Price and Income Limits. Please note that some Non-Target counties have targeted neighborhoods within them. Those areas are listed by county and census tract starting on page three of the purchase price and the income limits above. To determine the census tract of a specific property.
   OR
   You and all other adults who intend to live in the home within 12 months from closing are first-time homebuyers. This is defined as someone who has not owned (had Title to) their principal residence during the previous three years.
2. The gross annual household income for all adults that intend to occupy the home within one year from loan closing does not exceed the Keystone Home Loan Program income limit. All sources of income must be included, except for income received by persons under age 18 and income received by dependants enrolled in a full-time undergraduate program.
3. The purchase price of your prospective home does not exceed the Keystone Home Loan Program purchase price limit. This includes all costs for a complete home. It is also known as the total acquisition cost. The appraised value of land owned outright for more than two years does not need to be included.
4. You have an acceptable credit history and the ability to make monthly payments on the home you expect to buy. Generally, you should plan to use no more than 30 percent of your income for your monthly mortgage payment. A participating lender can help you determine how much of a home you can afford, as well as any credit issues you may need to work on.
5. You have sufficient funds to pay standard mortgage application and closing fees. Check with a participating lender to determine the specific costs. These would commonly include such things as credit reports, appraisals, title fees, etc.
6. You have sufficient funds for a downpayment on your prospective home. Borrowers who have a downpayment of less than 20 percent of the home’s purchase price or appraised value are required to obtain mortgage insurance to protect the lender in the event that the mortgage becomes delinquent (you fall behind on your payments). The amount of the downpayment differs according to the loan type as listed below.

Conventional loans: This is the term for a loan that is not insured or guaranteed by the government. In this case, borrowers with a middle FICO credit score of at least 660 can put as little as three percent down (this would include the co-borrower’s score, too). Of that amount, the lesser of $1,000 or two percent of the sales price must be verified in your bank account for at least three months. The remainder can come from a gift from a member of your immediate family (parent, sibling, child, grandparent, aunt, or uncle) or a nonprofit organization.

For buyers with credit scores below 660, a downpayment of five percent is required for conventional loans. At least three percent must be verified in your bank account for at least three months. The additional two percent can be a gift from a source mentioned above.

FHA loans: These loans are insured by the Federal Housing Administration (FHA) and require a borrower to have a three percent minimum investment.

VA and RHS loan: Loans guaranteed by either the Veterans’ Administration (VA) or Rural Housing Services (RHS) require no downpayment in most cases. RHS loans are not available in Philadelphia and Delaware counties or other major cities.

Borrowers should be aware that not all participating lenders offer FHA, VA, or RHS loans. Also, those loan types may have additional eligibility requirements regarding the buyer and/or the property.

                                                                                 To enhance your buying and selling experience, it’s our job as real estate professionals to provide you with as much valuable information as possible. It is essential that the buyer or seller be aware of all aspects of the real estate market before making a major decision. We are here to make this process stress-free and rewarding.

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