Reading FHA Loans

READING, 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.

Reading's 141 lenders originated 2,113 FHA loans during 2021. The total origination value was $380,705,000, with an average FHA loan value of $180,173.

Reading FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Reading averaged 5.43% for the week of 2022-05-20, compared to the national average (all FHA variants) of 5.352% for the same period.

The average rate for the prior week (2022-05-13) was 5.14% and one month ago for the week of 2022-04-15, the average rate was 5.03%.

The average rate one year ago was 3.3%.

For refis of the same type during the week of 2022-05-20, the average rate was 4.93%.

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

Reading 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 Reading level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
CROSSCOUNTRY MORTGAGE, LLC 216 3.24% $8,333
QUICKEN LOANS, LLC 188 2.80% $6,581
Mortgage America, Inc. 122 3.01% $6,575
Customers Bank 97 2.91% $6,243
Northpointe Bank 87 3.04% $7,095
PENNYMAC LOAN SERVICES, LLC 64 3.07% $4,762
LAKEVIEW LOAN SERVICING, LLC 53 3.05% $5,419
Mr. Cooper ( Nationstar Mortgage ) 45 3.27% $5,131
FREEDOM MORTGAGE CORPORATION 43 3.00% $5,681
CALIBER HOME LOANS, INC. 39 2.82% $8,813
Fulton Bank 35 3.15% $6,602
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 34 3.27% $8,646
BROKER SOLUTIONS, INC. 34 3.19% $8,875
NEWREZ LLC 32 2.97% $5,281
CONTOUR MORTGAGE CORPORATION 31 2.91% $8,023
GUARANTEED RATE, INC. 29 2.91% $8,536
HOME POINT FINANCIAL CORPORATION 29 2.76% $7,098
UNITED WHOLESALE MORTGAGE, LLC 28 2.81% $8,692
Flanagan State Bank 28 3.50% $7,237
LOANDEPOT.COM, LLC 27 3.45% $8,515
RESIDENTIAL MORTGAGE SERVICES, INC. 24 3.17% $7,618
Paramount Residential Mortgage Group, Inc. 23 3.53% $8,696
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 22 3.26% $6,096
FINANCE OF AMERICA MORTGAGE LLC 21 3.24% $8,422
AmeriHome Mortgage Company, LLC 20 3.05% $5,251
Carrington Mortgage Services, LLC 20 3.66% $8,744
NATIONWIDE MORTGAGE BANKERS, INC. 17 3.37% $9,989
VILLAGE CAPITAL & INVESTMENT LLC 16 2.97% $2,472
MOVEMENT MORTGAGE, LLC 16 3.11% $8,251
Citizens Bank 15 2.99% $8,344
Lakeview Community Capital, LLC 13 3.18% $5,260
Homesale Mortgage, LLC 13 2.96% $7,164
Univest Bank and Trust Co. 13 2.88% $6,786
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 12 3.09% $9,550
SUCCESS MORTGAGE PARTNERS, INC. 12 3.35% $8,594
Manufacturers and Traders Trust Company 12 2.77% $6,496
Equity Prime Mortgage LLC 11 3.53% $6,631
Prosperity Home Mortgage, LLC 11 3.49% $9,175
Keystone Funding, Inc. 11 3.13% $7,583
GUILD MORTGAGE COMPANY 9 3.32% $7,490
ENVOY MORTGAGE, LTD 9 3.22% $8,802
ALLIED MORTGAGE GROUP, INC. 9 3.24% $8,013
Gateway First Bank 8 3.17% $5,030
HOMEBRIDGE FINANCIAL SERVICES, INC. 7 2.96% $8,059
MLB RESIDENTIAL LENDING, LLC 7 3.11% $9,859
First Guaranty Mortgage Corporation 7 3.07% $6,583
PRIMARY RESIDENTIAL MORTGAGE, INC. 7 3.59% $8,203
First National Bank of Pennsylvania 7 2.96% $7,453
Bank of England 6 3.29% $9,064
MICHIGAN MUTUAL, INC. 6 3.08% $10,037
GUARANTEED RATE AFFINITY, LLC 6 3.06% $6,343
AMERISAVE MORTGAGE CORPORATION 6 3.27% $7,511
AMERICAN FINANCIAL NETWORK, INC. 5 3.63% $14,059
RELIANCE FIRST CAPITAL, LLC 5 3.13% $7,774
Meridian Bank Corporation 5 3.00% $8,753
AMERICAN FINANCING CORPORATION 5 3.10% $9,446
FIRST HERITAGE FINANCIAL, LLC 5 3.03% $8,342
Advisors Mortgage Group, L.L.C. 5 3.03% $8,557
EMM LOANS LLC 5 3.05% $9,940
1ST FINANCIAL, INC. 4 3.44% $7,367
InterContinental Capital Group, Inc 4 3.00% $8,696
MORTGAGE ACCESS CORP. 4 3.38% $9,611
Nations Lending Corporation 4 3.28% $7,851
SUN WEST MORTGAGE COMPANY, INC. 4 2.59% $7,169
TIDEWATER MORTGAGE SERVICES, INC. 4 3.56% $8,795
TOP FLITE FINANCIAL, INC. 4 3.31% $17,819
PLANET HOME LENDING, LLC 3 2.75% $5,297
EMBRACE HOME LOANS, INC. 3 3.04% $7,593
GREENTREE MORTGAGE COMPANY, L.P. 3 2.67% $8,478
LENDING CAPITAL GROUP Inc 3 3.08% $7,861
Santander Bank, N.A. 3 3.42% $5,718
NFM, INC. 3 3.42% $9,965
STEARNS LENDING, LLC 3 3.08% $6,642
Atlantic Home Loans, Inc. 3 3.46% $8,578
FIRST ALLIANCE HOME MORTGAGE, LLC 3 3.13% $8,996
Bank of America 3 3.08% $9,967
Mid Penn Bank 2 3.50% $8,046
ABSOLUTE HOME MORTGAGE CORPORATION 2 2.69% $9,090
UNITED MORTGAGE CORP. 2 3.25% $9,144
FAMILY FIRST FUNDING LLC 2 3.13% $9,700
Huntingdon Valley Bank 2 3.00% $10,076
Barrington Bank & Trust Company, N.A. 2 3.00% $6,321
NJ LENDERS CORP. 2 2.69% $7,815
MEMBERS 1ST FEDERAL CREDIT UNION 2 2.75% $5,980
Hometown Lenders, Inc. 2 3.06% $6,262
Quaint Oak Mortgage, LLC 2 3.19% $6,161
GENEVA FINANCIAL, LLC 2 3.06% $7,582
ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 2.69% $10,463
PANORAMA MORTGAGE GROUP, LLC 2 3.44% $8,972
Mortgage Research Center, LLC 2 3.00% $5,656
APEX HOME LOANS, INC. 2 3.06% $10,086
Wells Fargo Bank 2 4.06% $3,358
The Federal Savings Bank 2 3.00% $11,306
NATION ONE MORTGAGE CORPORATION 2 3.25% $10,580
Presidential Bank, FSB 1 2.75% $5,688
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 2.99% $8,170
Hometown Equity Mortgage, LLC 1 4.50% $7,247
Quontic Bank 1 3.13% $7,821
RESIDENTIAL HOME MORTGAGE CORPORATION 1 3.38% $4,655
ARC HOME LLC 1 3.13% $8,607
ROYAL UNITED MORTGAGE LLC 1 3.25% $7,347
T2 FINANCIAL LLC 1 3.25% $8,970
The Ephrata National Bank 1 2.75% $8,033
WESTERN EXPRESS LENDING 1 4.13% $7,024
ZILLOW HOME LOANS, LLC 1 3.63% $5,606
Truist Bank 1 3.13% $7,146
UNION HOME MORTGAGE CORP. 1 4.00% $5,143
UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 2.50% $7,916
AmRes Corporation 1 2.25% $4,235
Integrity Home Mortgage Corp 1 2.75% $11,059
A&D Mortgage LLC 1 3.63% $9,053
JAMES B. NUTTER & COMPANY 1 3.00% $3,604
JPMorgan Chase Bank 1 3.49% $0
Princeton Mortgage Corporation 1 3.25% $7,229
HOMESIDE FINANCIAL, LLC 1 3.50% $9,369
LEADERONE FINANCIAL CORPORATION 1 3.25% $6,697
LENDUS, LLC 1 2.63% $10,460
LIBERTY HOME MORTGAGE CORPORATION 1 4.25% $8,391
GUARANTY HOME MORTGAGE CORPORATION 1 2.63% $10,926
MASON MCDUFFIE MORTGAGE CORPORATION 1 2.88% $7,462
MEMBER FIRST MORTGAGE, LLC 1 3.13% $8,806
MID AMERICA MORTGAGE, INC. 1 3.63% $2,734
MILEND, INC. 1 3.25% $10,918
US MORTGAGE CORPORATION 1 2.63% $8,602
EQUITY RESOURCES, INC. 1 2.88% $9,102
Mortgage Network, Inc. 1 2.88% $7,517
Dollar Bank, Federal Savings Bank 1 3.12% $7,604
NATIONS DIRECT MORTGAGE, LLC 1 2.88% $8,065
DEVELOPER'S MORTGAGE COMPANY 1 2.75% $7,219
CMG MORTGAGE, INC. 1 3.13% $8,725
CHURCHILL MORTGAGE CORPORATION 1 3.75% $13,896
NP, Inc. 1 3.13% $9,443
OCEANSIDE MORTGAGE COMPANY 1 2.88% $5,627
CBM Mortgage, Inc. 1 3.25% $8,996
BAYSHORE MORTGAGE FUNDING, LLC 1 3.25% $9,949
Peoples Bank 1 3.50% $7,686
PHH Mortgage Corporation 1 3.13% $2,223
PIKE CREEK MORTGAGE SERVICES, INC. 1 3.88% $3,192
Plains Commerce Bank 1 3.13% $7,617
PLAZA HOME MORTGAGE, INC. 1 2.75% $8,350
POLARIS HOME FUNDING CORP. 1 2.88% $10,686

The top Reading FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 216 FHA loans originated. Their average total fees are $8,333, which is $1,751 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Reading FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,472), PENNYMAC LOAN SERVICES, LLC ($4,762), Mr. Cooper ( Nationstar Mortgage ) ($5,131), AmeriHome Mortgage Company, LLC ($5,251) and Lakeview Community Capital, LLC ($5,260).

The lowest rate Reading FHA lenders (with over 10 loans originated) are HOME POINT FINANCIAL CORPORATION (2.76%), Manufacturers and Traders Trust Company (2.77%), QUICKEN LOANS, LLC (2.80%), UNITED WHOLESALE MORTGAGE, LLC (2.81%) and CALIBER HOME LOANS, INC. (2.82%).

Reading FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
READING, PA BERKS 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).