Top 5 FHA Lenders in Pennsylvania 2019
If you’re interested in getting a home loan in Pennsylvania, you won’t be short of options. Pennsylvania currently has a population of almost 13 million, and, since interest rates are still extremely low, it could be a perfect time to purchase a home. Across the state, home values rose nearly 6 percent between December 2017 and December 2018.
Since home values are estimated to rise by almost 6% in the next year, both experienced and first-time home buyers will want to do everything they can to reduce their housing expenses. This starts with getting a great mortgage. And, since FHA loans offer low interest rates, down payments as little as 3.5%, and an ultra-low 580 credit score requirement, they’re often some of the most desirable loans for home buyers like you.
In this article, we’ll review the best FHA approved lenders in Pennsylvania and how they can help guide you on your quest to home ownership.
2019 Pennsylvania FHA Lender Best Picks
Best for First Time Home Buyers: Ditech
Best Online Experience: Guaranteed Rate
Best Local Lender: Perennial Funding
Best Face-to-Face Experience: Meridian Bank
Best Overall Performance: GMH
#1 Pennsylvania FHA Lender: GMH Mortgage Services, LLC
GMH Mortgage Services is headquartered in Conshohocken, PA, and focuses on local in-person offices and a high level of customer service, along with technical innovation and the use of new technologies to make things easier for borrowers. And, while it is headquartered in Pennsylvania, GMH has 25 offices in 22 states, so if you decide to move to another state and take out a loan, there’s a good chance you can become a repeat customer.
In addition to offering FHA loans, GMH also offers VA loans, which can be ideal for individuals who have served in the military or national guard (and eligible surviving spouses), as they have no required down payment and no required mortgage insurance.
Like most other modern lenders, potential borrowers can begin a mortgage application on the GMH website, and, if they do decide to choose GMH as their lender, they can make payments online throughout the duration of their loan.
#2 Pennsylvania FHA Lender: Guaranteed Rate
Guaranteed Rate isn’t just one of the largest FHA lenders in Pennsylvania-- it’s also one of the fastest growing FHA lenders in the United States. Guaranteed Rate is highly focused on creating new technologies that make it easier for borrowers to learn about, get, and pay off their mortgage. For instance, Guaranteed Rate is particularly proud of its GR Mobile App, which allows borrowers to “find the perfect mortgage for your situation, anytime, anywhere.” Plus, Guaranteed Rate’s 100% digital mortgage platform allows borrowers to securely upload all the documentation they need, without needing to confirm anything over the phone.
In addition to having one of the most highly developed digital mortgage platforms, Guaranteed Rate also has significant experience originating FHA loans. That combination of an efficient digital platform and significant industry experience makes them a significant competitor to lenders like GMH and Quicken Loans-- and potentially a great choice for borrowers like you.
#3 Pennsylvania FHA Lender: Meridian Bank
Meridian Bank is relatively new to the finance world, having been founded in 2004. However, in that 15 years, Meridian has gone far, with assets currently sitting at around $800 million and a well-developed business in home mortgages, commercial real estate lending, and even wealth management. And, when it comes to home mortgages, one of Meridian’s major specialties is FHA loans.
Just like GMH, Meridian is a local, Pennsylvania-based company, which may reassure some people who prefer one-on-one, individualized service. In fact, Meridian Bank has 7 branches throughout the state, with many more in neighboring states like New Jersey and Delaware, so if you want to talk to a mortgage banker in person, you can certainly do so.
If you’d like to keep things digital, however, Meridian can help you there, too. While they lag a bit (or a lot) behind their competitors in some ways-- as they don’t offer full mortgage applications online, you can still fill out a form so that a Meridian mortgage banker can get back to you.
#4 Pennsylvania FHA Lender: Ditech Home Loans
Like GMB Mortgage Services and Meridian Bank, Ditech Home Loans is also based in Pennsylvania-- however, unlike GMH and Meridian, Ditech is actually a huge national company, with nearly 5,000 employees. In the early 2000s, Ditech was known for its funny TV commercials, where a frustrated mortgage officer would say "Lost another loan to Ditech."
However, the company disappeared from the home mortgage space for several years, after making some highly questionable decisions during the subprime mortgage crisis of the mid-2000s, including providing borrowers loans for more than their homes were worth and providing “low documentation” loans to borrowers who were unlikely to be able to repay their loans.
Despite its less-than-reputable past, Ditech has gone through several re-brands and restructurings and actually shares little with the Ditech of 11-12 years ago (other than a name). In fact, today, the company online provides prime mortgages and has a major focus on both fixed and adjustable-rate FHA loans.
#5 Pennsylvania FHA Lender: Perennial Funding
Perennial Funding was founded in 2006, making it quite a new addition to the Pennsylvania home finance industry. Like several of the other lenders on this list, Perennial Funding began in Pennsylvania but soon expanded outside the state to serve Delaware, Florida, Maryland, New Jersey, and Virginia.
Perennial not only does FHA loans, but also can help borrowers get VA loans, reverse mortgages, jumbo loans, and cash-out refinances, making it an extremely diverse lender with a variety of options.
Shop Around Before You Get a Pennsylvania FHA Loan
Even if you decide to check out our top recommendations for the best FHA lenders in Pennsylvania, looking beyond our picks is definitely a smart move. Each borrower’s situation is unique, and sometimes even the most obscure lenders can offer some of the best mortgage terms. So, whether you’re a first-time home buyer or an experienced pro, you should definitely shop around with a variety of lenders to determine which one can give you the most affordable loan for your individual situation.
While looking at reviews can be a huge help, getting a one on one consultation could mean saving thousands. If you’d like some help in locating the best FHA lender in your area, don't hesitate to contact a home.loans mortgage expert!