Erie FHA Loans

ERIE, PA

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Erie's 62 lenders originated 803 FHA loans during 2021. The total origination value was $148,665,000, with an average FHA loan value of $185,137.

Erie FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Erie averaged 5.39% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.12% and one month ago for the week of 2022-04-08, the average rate was 5.08%.

The average rate one year ago was 3.29%.

For refis of the same type during the week of 2022-05-13, the average rate was 4.99%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Erie FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Erie level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 125 2.85% $5,615
PLAZA HOME MORTGAGE, INC. 76 2.99% $8,229
Citizens Bank 73 2.93% $6,260
HOWARD HANNA FINANCIAL SERVICES, INC. 35 2.92% $5,402
MOVEMENT MORTGAGE, LLC 34 3.31% $5,577
AFFORDABLE MORTGAGE ADVISORS, LLC. 33 2.91% $5,798
EQUITY RESOURCES, INC. 32 3.11% $5,576
Princeton Mortgage Corporation 32 3.18% $6,108
Flagstar Bank, FSB 27 2.79% $6,190
TIDEWATER MORTGAGE SERVICES, INC. 27 2.90% $5,937
UNITED WHOLESALE MORTGAGE, LLC 26 2.90% $7,936
UNION HOME MORTGAGE CORP. 19 3.14% $7,079
FIRST HERITAGE FINANCIAL, LLC 19 2.91% $4,657
LAKEVIEW LOAN SERVICING, LLC 18 3.15% $4,934
Mr. Cooper ( Nationstar Mortgage ) 13 3.50% $3,322
FREEDOM MORTGAGE CORPORATION 13 3.04% $5,220
ALLIED MORTGAGE GROUP, INC. 9 3.07% $9,239
BROKER SOLUTIONS, INC. 8 3.40% $7,461
HOME POINT FINANCIAL CORPORATION 7 3.04% $7,313
PENNYMAC LOAN SERVICES, LLC 7 2.79% $4,304
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 7 2.88% $8,867
VILLAGE CAPITAL & INVESTMENT LLC 6 3.08% $2,179
LIBERTY HOME MORTGAGE CORPORATION 6 3.88% $7,267
Widget Federal Credit Union 5 3.03% $4,414
AMERISAVE MORTGAGE CORPORATION 5 3.53% $6,204
CALIBER HOME LOANS, INC. 5 3.17% $3,230
First Guaranty Mortgage Corporation 4 3.03% $6,528
Paramount Residential Mortgage Group, Inc. 4 2.84% $6,664
Northwest Bank 3 3.00% $4,807
AmeriHome Mortgage Company, LLC 3 2.75% $5,551
RELIANCE FIRST CAPITAL, LLC 3 3.08% $7,030
MICHIGAN MUTUAL, INC. 3 3.00% $8,895
The Huntington National Bank 3 3.33% $8,228
Equity Prime Mortgage LLC 3 3.58% $10,724
LAND HOME FINANCIAL SERVICES, INC. 2 4.19% $7,407
First Home Bank 2 3.50% $7,062
HOMESTEAD FUNDING CORP. 2 3.63% $7,021
LOANDEPOT.COM, LLC 2 3.49% $5,755
Mortgage Research Center, LLC 2 2.94% $3,312
ARC HOME LLC 2 3.61% $8,097
PNC Bank 2 2.94% $6,125
NEWREZ LLC 1 2.75% $4,179
Mortgage America, Inc. 1 2.38% $5,041
CHURCHILL MORTGAGE CORPORATION 1 2.25% $5,495
BETTER MORTGAGE CORPORATION 1 3.63% $5,101
PLANET HOME LENDING, LLC 1 3.75% $3,750
Carrington Mortgage Services, LLC 1 3.63% $8,765
CROSSCOUNTRY MORTGAGE, LLC 1 3.00% $9,817
Lakeview Community Capital, LLC 1 2.99% $5,238
KeyBank 1 2.88% $6,703
Home Mortgage Alliance Corp 1 2.88% $8,425
ROYAL UNITED MORTGAGE LLC 1 3.75% $10,436
SUN WEST MORTGAGE COMPANY, INC. 1 2.75% $6,067
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 2.75% $9,498
The Union Bank Company 1 2.25% $8,587
AMERICAN FINANCING CORPORATION 1 3.75% $6,420
TOTAL MORTGAGE SERVICES, LLC 1 4.50% $11,899
AMERICAN FINANCIAL NETWORK, INC. 1 2.50% $9,634
UNITED SECURITY FINANCIAL CORP 1 2.50% $4,283
FIRST HOME MORTGAGE CORPORATION 1 3.25% $7,107
Barrington Bank & Trust Company, N.A. 1 3.38% $4,202
Nations Lending Corporation 1 2.88% $10,349

The top Erie FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 125 FHA loans originated. Their average total fees are $5,615, which is $2,614 lower than the next largest lender, PLAZA HOME MORTGAGE, INC..

The lowest fee Erie FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) ($3,322), FIRST HERITAGE FINANCIAL, LLC ($4,657), LAKEVIEW LOAN SERVICING, LLC ($4,934), FREEDOM MORTGAGE CORPORATION ($5,220) and HOWARD HANNA FINANCIAL SERVICES, INC. ($5,402).

The lowest rate Erie FHA lenders (with over 10 loans originated) are Flagstar Bank, FSB (2.79%), QUICKEN LOANS, LLC (2.85%), UNITED WHOLESALE MORTGAGE, LLC (2.90%), TIDEWATER MORTGAGE SERVICES, INC. (2.90%) and AFFORDABLE MORTGAGE ADVISORS, LLC. (2.91%).

Erie FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
ERIE, PA ERIE 2022 $420,680 $538,650 $651,050 $809,150

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).