Did you know that the seller can pay a percentage of your closing costs? That means that if you ask the seller to pay some of your closing costs (seller assist), you will need less money at closing. The mortgage rules permit the seller to pay a percentage (or fixed dollar amount) to your closing costs. The total amount of the seller assistance is dictated by the mortgage type. Read more
Title insurance will be required if you purchase a home with a mortgage. But what is title insurance? The best way to explain title insurance is to use an example:
Let's say you purchased a 60 year old home, and during those 60 years, the house
was sold and resold a number of times.
Back in 1955 Mr. and Mrs. Jones purchased the home and after a few years, Mrs.
Jones ran off and joined the French Foreign Legion without divorcing Mr. Jones.
After a few years, Mr. Jones remarried and Mr. Jones and the new "Mrs. Jones"
sold the house to Mr. and Mrs. Smith.
The Smiths lived in the home for a number of years and one day, the original Mrs. Jones showed up at their door after retiring from the Foreign Legion and told the Smiths' that since she never signed the deed over to them, she was still the rightful owner of the house. Now what? The title insurance policy protects you against this problem and other issues that can arise while you own the house. Read more
The State of Pennsylvania imposes a "deed transfer tax" on property sales in
the the state (there are a few exceptions). Consider it a sales tax on real
estate. One percent of the sales price is paid to the State of Pennsylvania and
1% is split between "most" school districts and the local government, for a
total cost of two percent of the sale price. There are a few exceptions.
The stated income mortgage is ideal for self-employed borrowers. The self
employed borrower is required to have owned a business for a least 24 months. A
certified public accountant must verify the self employment.
The CPA writes a letter stating how long he or she has been the Borrower's accountant, what ownership percentage the Borrower has in the business, and how long the Borrower has been self-employed. Read more
HUD home is a foreclosed home (or condominium) which was financed with an FHA
Whenever the home owner(s) does not pay the monthly mortgage payment, the lender, takes ownership by way of foreclosure.
The Federal Housing Administration (FHA) "insures" the bank against default. This means, the FHA will reimburse the lender for the loss. Read more
Here's a collection of interesting file and articles to help you with your home purchase.
The abbreviation for private mortgage insurance is "PMI".
Private mortgage is required for conventional (also known as conforming) home loans with less than a twenty percent down payment. Private mortgage insurance is usually paid monthly and is paid until the homeowner reduces the mortgage mortgage balance by 22%.
MIP is often confused with PMI, however, MIP stands for "mortgage insurance
premium". MIP is required with FHA and USDA insured home loans. The monthly
insurance payment is part of the FHA and USDA loan programs and never goes away
unless, the mortgage is paid off. The VA mortgage program does not required
monthly mortgage insurance, or private mortgage insurance.
Watch these home buying videos from the Department of Housing and Urban Development and learn how to avoid problems buying and financing a home. View movie
How much does it cost to buy a house in Pennsylvania?
Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.