Help Exists for the Credit Impaired

There are options for homebuyers who don’t have an ideal credit history. The PA Housing Finance Agency offers a statewide network of lenders and brokers for consumers, according to Kate Newton of the PHFA. “We limit how many fees the lenders can charge,” she notes.

One of the unique aspects of the program is financial counseling, Newton says. “We will pay for pre-purchase counseling before the contract is signed,” she explains. “The counseling helps consumers determine what they can afford before they begin house shopping.

“Homeownership isn’t for everyone right now,” she adds. “That’s not to say that someone might never own a home but he or she might need to save some money, clean up the credit and get in a better place to apply for a mortgage.

“For people who meet the eligibility requirements for PHFA loans, we pay for the counseling because we believe so strongly in it. And if their FICO scores are lower, we require counseling,” Newton says.

Home buyers should log onto PHFA’s web site at www.phfa.org and click on the “Where do I start?” portion. This section explains how buyers qualify for PHFA loans and lists lenders and counseling agencies.