Reading FHA Loans

READING, PA

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    • 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).