First Time Homebuyer Loans in Philadelphia

Buying a home for the first time is a daunting prospect especially when not only do you have to ensure that you have enough money for a down payment, but you want to secure a loan with a reasonable rate. Luckily, there are plenty of first time homebuyer loans available in Philadelphia; all it takes is a little research to find the right one for you. There are even government loans which you may qualify for as a first time homebuyer.

�The Redevelopment Authority
The Redevelopment Authority (RDA), provides first time homebuyers with low interest loans. In fact, the interest rate with these first time homebuyers loan is one of the cheapest in Philadelphia. When you apply you are applying for a Philadelphia Home Mortgage.

�The Office of Housing and Community Development
The Office of Housing and Community Development (OHCD) offers settlement grants for first time buyers and the grants are specifically directed towards lower income families. Their aim is to provide low cost housing for families on a limited budget, making it easier for first time buyers to purchase their own homes within the Philadelphia area.

�PNHS
PNHS offers a variety of loans, but they do have strict guidelines in order to become approved for one of their homebuyer loans. The main rule that many people find frustrating is that the lender requires that the borrower attend housing counseling. They also offer a down payment option where they will assist in paying up to 3% of the down payment. A money mortgage loan doesn’t have a limited amount of available money; however the maximum repayment term is 30 years.

�Washington Mutual
Washington Mutual is a well known mortgage lender that offers first time homebuyer loans to the people living in Philadelphia. Their rates can be quite high, but the loan calculator on its website can help you to get a better idea of what your repayment options would be. You can borrow up to $200,000 depending upon your financial circumstances.

Above are just a few options that are open to first time homebuyers. Of course, the type of loans and loan amounts will depend on the neighborhood that you wish to reside in. There are numerous neighborhoods and each varies greatly in price. The highest median home price in Philadelphia is in Center City. This is because of the close proximity to the main tourist attractions, so the prices are inflated.

The surrounding areas of downtown Philadelphia have also seen a rise in house prices. There is more and more demand for houses close to Center City and the real estate market sees this as an excellent opportunity to raise their prices. Of course, this is bad news for first time buyers and you may be forced to look in other areas of Philadelphia for your perfect home. No doubt one of the best areas for all incomes is Northwest Philadelphia. The Mt. Airy neighborhood in particular is quite popular with first time homebuyers. Southwest Philadelphia is also less expensive and is not far from the airport. However, the best place currently for first time homebuyers to is the West Philadelphia neighborhood. West Philadelphia has really low house prices due to the fact that most people are moving towards Center City.

It is important to know which area you are most interested in buying into as it will affect the amount which you will receive loan wise. For example, if you decide to move to a place which has a low house price, you could be able to borrow the full amount to buy the home outright. However, if the area is an expensive one, you may have trouble finding the money to cover the down payment and may not be approved for a loan.

It is important to thoroughly research all first time homebuyer loans that are available in Philadelphia. This will ensure you get the cheapest interest rate and the best loan for you. There are quite a few to choose from so take your time and find out as much as you can!