Home Buying Tips

The following information is provided by Financial Access, LLC to show creative solutions for  borrowers with different types of available lending programs.  These scenarios are examples only.  Each loan application is reviewed according to the structure of the loan programs that best fits the borrower’s request.  Case by Case scenarios. Contact us today for guidance and consultation for mortgage lending in Pennsylvania (PA).

Purchasing a home with PMI (Private Mortgage Insurance) at 3% to 19% down payment.

You can buy a home without waiting years to save for a larger down payment. PMI also applies to homeowners who are interested in refinancing their existing loan with a loan amount over 80% of the current property value. The PMI is an additional amount to be paid every month with the regular payment of principal, interest, taxes and insurance.  Click here for more about PMI.

Purchasing a home with LPMI (Lender Paid Mortgage Insurance) at a low down payment.

If a borrower finances over 80% of the loan for either purchases or refinancing, they are subject to mortgage insurance. Instead of paying an additional mortgage insurance payment each month, the lender pays the MI premium and charges a slightly higher interest rate. Homebuyers may find LPMI offers advantages over the more traditional borrower-paid MI.  Click here for more about LPMI.

Family Gift

A gift of monetary value from a related person used as the source for the down payment or portion of the down payment to purchase an owner-occupied property.

Gift of Equity

Gift of equity is provided by the seller who is a family member of the buyer and owner of the subject property.  Gift of Equity is a form of the down payment for the buyer.

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