The Keystone State is an attractive place to raise a family. This historic commonwealth has a beautiful blend of urban, suburban and rural areas, giving rise to diverse housing options. Pennsylvania’s cost of living is lower across many categories — like utilities — than the national average.
The cherry on top is that you can choose from many local lenders offering top-rated mortgage options for families in Pennsylvania. These businesses have a wide regional presence, making them easily accessible when discussing your loan options face-to-face. They treat you like a neighbor because you are.
Before you shop around for houses and condominium units, discover Pennsylvania’s leading homegrown lenders to know how much you can afford.
PSECU
Short for Pennsylvania State Employee Credit Union, PSECU describes itself as a digital-first bank with a human touch. With this credit union, you’ll enjoy the conveniences of using a big bank and the warmth you’ve come to expect from a local business.
PSECU offers fixed-rate and adjustable-rate conventional mortgages, which suit the needs of most homebuyers. This multi-award-winning nonprofit also offers jumbo loans — a nice option if you want to buy a more expensive property.
This credit union’s first-time homebuyer loan program is among the top-rated mortgage options in the region. This product allows 100% financing without private mortgage insurance (PMI). With this option, you can take out a mortgage without a down payment and an additional monthly cost to shorten your path to homeownership.
You can also apply for a construction loan with PSECU if you want to build your home from the ground up. This option gives you access to funds needed to acquire a piece of land and build a structure on top of it. This loan requires you to pay only the interest during construction and turns into a traditional mortgage once your house is ready for move-in.
PSECU prequalifies mortgage applicants, so you only need to provide more detailed financial information when you find a house and are ready to purchase.
If you have plenty of cash on hand and wish to save on interest over the life of your loan, you can buy down your rate by purchasing mortgage points. Each point is equal to 1% of your loan amount, and you can roll it into your closing costs.
Newrez
Newrez is a national mortgage lender based in Fort Washington, Pennsylvania. This financial institution has more than 15 loan officers licensed in the state who are excited to help you realize your American dream.
Aside from issuing popular mortgage options for families in Pennsylvania — such as fixed-rate and adjustable-rate conventional conforming loans, Federal Housing Administration (FHA) loans and Department of Veterans Affairs (VA) loans — Newrez also offers a nonqualified mortgage (non-QM) called SmartSelf. It’s part of the company’s Smart Series, a group of loans existing outside the Consumer Financial Protection Bureau’s strict standards.
SmartSelf gives Newrez more flexibility in extending credit to self-employed individuals. Unconventional mortgage borrowers — such as independent contractors and sole proprietors — seldom meet the rigid criteria set by Fannie Mae, Freddie Mac or the FHA.
This non-QM gives you a golden opportunity to outbid traditional homebuyers on properties for sale despite your self-employment status. With SmartSelf, you can use bank statements, 1099 forms and assets to prove your financial capacity to repay a home loan.
Newrez also has a more lenient debt-to-income (DTI) ratio policy for SmartSelf applicants.
This lender deviates from the common practice of drawing the line at 43%, which means all monthly debt payments — including regular housing expenses — should account for no more than 43% of a borrower’s gross monthly income.
A higher DTI ratio allows you to qualify for a mortgage without paying off other financial obligations first. You can also take out a jumbo loan to afford a bigger house — even as a first-time homebuyer.
Moreover, Newrez lets you take over an assumable mortgage like an FHA or VA loan. Mortgage assumption makes sense in some situations — like when the loan’s interest rate is significantly lower than most lenders currently charge. Newrez can explain the trade-offs of this path to homeownership to help you make an informed decision.
Meridian Bank
Meridian Bank is a regional home loan lender licensed in four states. It’s headquartered in Malvern, Pennsylvania, and employs numerous mortgage loan originators across its Blue Bell and Mountview offices. The company focuses on digital banking instead of branch count to provide outstanding customer experience and savings to borrowers.
Meridian takes pride in offering an expansive selection of top-rated mortgage options for families in Pennsylvania. Like other lenders, this financial institution offers conventional home loans with:
- Fixed rates to make monthly mortgage payments predictable.
- Adjustable rates to make monthly mortgage payments more affordable.
- Terms spanning 10 to 30 years to maximize the mortgage amortization schedule.
This company’s mortgage menu also includes:
- FHA loans, which suit borrowers with poor credit.
- VA loans, which are perfect for the military community.
- United States Department of Agriculture (USDA) loans, which are available for low-income suburban and rural homebuyers who want to avoid out-of-pocket costs.
- Jumbo loans, which fund luxury home purchases.
- Rehab loans, which fit the needs of borrowers wishing to roll their mortgage and home improvement loan into one.
- Medical professional loans, which entitle select health care workers to favorable mortgage terms — such as little or no down payment and no PMI.
Meridian also issues the Keystone Home Loan — especially for first-timers — on behalf of the Pennsylvania Housing Finance Agency (PHFA). This special program gives you access to below-market interest rates when you buy a house in a specific county or area and stay within purchase price and income limits.
If you need help paying your down payment and closing costs, pair the Keystone Home Loan with a forgivable second mortgage. This piggyback loan has a debt forgiveness rate of 10% per year, so you can forget about repaying it as long as you don’t resell within 10 years.
If you’re a first-time homebuyer eyeing a single-family home or duplex in Philadelphia, Meridian can help you apply for the Philly First Home Grant. The city government won’t ask you to repay this generous down payment assistance when you hold on to the property for at least 15 years.
PNC
PNC has been in the banking industry for more than 150 years. Its unmatched home lending history speaks volumes about the quality of its mortgage options for families in Pennsylvania.
This Pittsburgh-headquartered institution has branches in Bellefonte, Bloomsburg and Williamsport. You can visit any location and a helpful mortgage loan officer will assist you in navigating and getting preapproved for these programs:
- Fixed-rate mortgages — like Fannie Mae’s 97% loan-to-value financing programs
- Adjustable-rate mortgages
- Jumbo loans
- FHA loans
- USDA loans
- VA loans
PNC is also proud of its specialized home lending solutions, including physician loans and the PNC Community Loan.
Physician loans are available to medical interns, residents, fellows and doctors who have completed residency in the past five years. If you’re eligible, these mortgage programs will let you borrow a substantial amount to buy your family’s primary residence, choose between fixed and adjustable rates, gift funds to beef up your down payment and avoid PMI.
On the other hand, the PNC Community Loan is perfect for cash-strapped borrowers. This program requires minimal cash reserves.
Lenders typically want to see you have sufficient personal funds to demonstrate your pocket is deep enough to sustain mortgage repayment for months while weathering financial storms — like a job loss or medical emergency.
The PNC Community Loan’s low-income-earner-friendly feature reduces the time you need to try creative budgeting methods to save up enough money.
Furthermore, you only need to put down a small amount without worrying about paying PMI when you take out the PNC Community Loan. This bank also permits you to use monetary gifts from qualified donors to bridge the gap between your chosen property’s appraised value and sales price.
PNC offers several down payment assistance options to support its mission of promoting affordable housing. Your eligibility depends on your income level and your prospective property’s location.
Mortgage America
Mortgage America’s name screams national ambition. Although it has only been aggressive enough to expand its footprints in four states over the past 40 years, the company has moved mountains to serve as many of its fellow Pennsylvanians.
In addition to its headquarters in Whitehall, Pennsylvania, Mortgage America maintains 11 offices statewide, including Harrisburg, Lititz, Reading, Shamokin Dam and Schuylkill Haven.
Crowned one of the Top Places to Work by The Morning Call, Mortgage America’s loan officers embody its dedication to customer service.
This lender doesn’t offer flashy financial products. Like most, it issues conventional and jumbo loans with fixed and adjustable rates, as well as FHA, VA and USDA loans. What makes Mortgage America’s mortgage options top-rated is its loan officers.
These mortgage professionals use their expertise and sense of community to make your homebuying experience convenient and qualify for a loan you can realistically afford in the area you wish to live.
For instance, Mortgage America can check whether you’re eligible for a PA Bond to fund your big-ticket purchase with a below-market interest rate if you can’t qualify for a conventional loan as a first-time borrower.
Mortgage America takes pride in granting speedy preapprovals, but its staff takes as much time as possible to help you explore your best options. No wonder PHFA has ranked it first among all lenders in the state at least eight times.
Get Preapproved for a Top-Rated Mortgage Option for Families in Pennsylvania
Conventional wisdom says you should secure no less than loan estimates from three mortgage lenders to gauge the market. With this exclusive list, make it five because discussing loan options with all of them is a good move.
