• Maximum LTV for 1 unit property is 95%
• 80/10/10 and 80/15/5 is permitted
• Primary, Second and Investment properties are allowed
• PMI required over 80% LTV
• Ratios > 90% LTV 28/36 or LTV's < 90% 33/38
• Seller contributions allowed up to 3% of sales price
• NO prepayment penalties

The new 40 year mortgage allows the borrower to get into a larger home with a lower monthly mortgage payment without having to take out an Adjustable Rate Mortgage. Keep in mind that although the monthly payment is lower than the 30 year, equity will take longer to accrue.

• Up to a 100% LTV and CLTV permitted, primary residence only
• Primary residence, second home, and investment permitted
• Subordinate financing permitted
• PMI required on LTV's over 80% (not including piggy back seconds)
• Ratios; LTV's > 90% 28/36 and LTV's <90% 33/38
• Down payment, closing costs, and prepaids may come from member's own funds, gifts, or grants. Use of credit cards is not allowed
• Seller assistance is allowed up to 3% of sales price.
• No prepayment penalty
• Loan is not assumable

Adjustable Rate Mortgage products allow members to take advantage of a lower interest rate and a lower payment. This product type is a great option for someone with high earning potential, providing lower payment now, allowing them to grow into their housing payment later when the loan begins to adjust. ARM's can also be a cost effective tool for members planning on moving or refinancing within a few years.

• Up to a 100% LTV and CLTV, primary residence only
• Primary residence, second home, and investment permitted
• Subordinate financing permitted
• PMI required on LTV's over 80% (not including piggy back seconds)
• Ratios; LTV's > 90% 28/36 and LTV's <90% 33/38
• Down payment, closing costs, and prepaids may come from member's own funds, gifts, or grants. Use of credit cards is not allowed.
• Seller assistance is allowed up to 3% of sales price.
• No prepayment penalty
• Loan is not assumable

Conventional fixed mortgages are the most widely used type of loan. The security of a fixed payment is an attractive financing option for many members. These products offer various terms for members looking to reduce long term costs by amortizing the loan over 10, 15, 20, 25, or 30 years. Conventional fixed mortgages are in highest demand when rates are low. Three more reasons why this type of mortgage is so popular...Conventional conforming loan amounts are higher than FHA maximum mortgage limits, there are no income restrictions, and the conventional appraisal process is easier.

• Up to a 100% LTV and CLTV for primary residence only
• Primary residence, second home, and investments permitted
• Subordinate financing permitted
• PMI required on LTV's over 80% (not including piggy back seconds)
• Loans will not be scored through the Automated Underwriting System
• Non-occupant co-borrower are not permitted
• Ratios - 40/40
• Credit scores as low as 620!
• W2's and IRS form 4506 are not required. Income is stated!
• State assets must be sufficient to cover the down payment, closing costs, prepaids and 2 months reserves
• Gift funds are not permitted
• Seller assistance is permitted up to 3% of the sales price
• Loan may be assumable
• No prepayment penalty

Custom Finance Stated Income/State Asset requires very little documentation. Since both income and assets are taken as stated on the loan application, the documentation typically required to verify them won't be needed. Credit scores as low as 620, provide a wide range of opportunities. Financing is available for 1-4 unit properties on purchase, rate/term, and cash out transactions for primary residence, second home and investment properties. LTV's and CLTV's are also available up to a 100% for certain scenarios!

• Must adhere to FHA maximum mortgage limits based upon property location https://entp.hud.gov/idapp/html/hicostlook.cfm
• Primary residence only, second home and investment not permitted
• Minimum investment of 3%
• 1-4 unit properties permitted
• Subordinate financing is permitted subject to limitations
• Mortgage Insurance is required for LTV's of 80% or higher
• Ratios of 31/43
• No reserves required on 1-2 unit properties
• Gifts are allowed for payment of down payment, closing costs, and prepaids
• Loans, secured only, are also allowed for payment of down payment, closing costs, and prepaids
• Seller assistance is permitted up to 6% of sales price
• No prepayment penalty
• Loan is assumable

FHA fixed rate mortgages offer a low down payment and provides the security of a fixed payment and are available for various terms for members looking to reduce long term costs by amortizing the loan over 15, 20, 25, or 30 years. This type of financing is primarily used by members with limited funds to close, requiring a minimum investment of 3% into the transaction.  FHA is also more forgiving of credit challenges. Members finding credit limitations with conventional financing may find a solid alternative through FHA.

• Maximum LTV for 1 unit property is 100%
• Primary residence only, second home and investor is not permitted
• Required PMI for all loans above 80% LTV
• Recommended minimum credit score for 1 unit property is 620!
• No reserves required on 1 unit properties
• Down payment, closing costs, and prepaids for a 1 unit property requires no minimum member contribution requirements
• Member's qualifying income can not exceed 100% of the HUD Median income for the property location. Centre County is $61,700.00
• Homebuyer education is not required for a 1 unit property
• Non-occupant co-borrowers are not permitted
• Member can not own other real estate at the time of closing

My Community Mortgage is Penn State Federal Credit Unions alternative to the first time home buyers program.

• Primary residence only, second home and investments not permitted
• No down payment required
• 103% LTV (100% + financed funding fee)
• 1-4 unit properties permitted
• PMI not required
• No reserves required
• 41% back debt ratio-must meet residual VA income guidelines
• Gift funds, borrowed funds, and seller contributions are permitted for closing costs and prepaids.
• No prepayment penalty
• Loan is assumable

VA fixed mortgage offer 100% financing and the ablility to roll in the VA funding fee for a total of up to 103% LTV. The biggest benefit of VA financing is 100% LTV's without traditional mortgage insurance. A funding fee does apply, but can be rolled into the loan amount. Eligibility requirements apply, but VA loans offer a great opportunity for members able to participate.