FHA Loan

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). Available to all consumers who want to refinance or purchase a new home, an FHA loan is the ideal loan program if you have a lower credit score, lower income or limited cash available.

Benefits of an FHA loan:

• New, higher loan amounts
• Cash-out refinancing up to 85% loan-to-value
• Up to 96.5% loan-to-value for purchases and no cash-out refinance loans
• Only a 3.5% down payment required
• Financing of most closing costs
• Flexible underwriting criteria to help lower credit and lower income

Additionally, if you already have an FHA loan, New Penn Financial also offers an FHA Streamline loan which can save you even more money.

Conventional Loan

Conventional loans can be used to refinance your existing mortgage, or used to purchase your new home. They are available for single family to four family homes. Conventional loans are ideal for borrowers who have strong credit. 

Benefits of a Convention loan:

• Down-payment requirements are generally between 5% and 20%
• Interest rates for conventional loans tend to be lower than interest rates for government loans

Veteran Administration Loan

If you are serving in the military, National Guard or Reserve, a veteran or a surviving spouse of a veteran, you may be eligible for a Veteran Administration (VA) loan.

Benefits of a VA loan:

• 100% financing available on Purchase
• 90% financing available on Refinance
• No Monthly Insurance Premium

Home Affordable Refinance:

The federal government has released a new mortgage refinance loan program that helps homeowners with Fannie Mae loans qualify for today's historically low rates.  Even if your loan-to-home value is 105% and you have been turned down in the past, you may still qualify under this special government program.

The goal of the refinance effort, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." Refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product. 

Benefits of a Home Affordable Refinance:

• Low-cost refinancing
• Reduced monthly principal and interest payments
• Stable loan structure

Jumbo Loan

Loans that exceed the $417,000.00 conventional loan limit are considered jumbo loans.  Jumbo loans are available for refinancing your existing mortgage or purchasing a new home. 

Benefits of a Jumbo Loan include:

• Loans up to $1 million
• Low monthly payments with 20% down payment
• No monthly mortgage insurance