The Best Mortgage Lenders in Allentown, PA
Compare verified mortgage lenders serving Allentown, Pennsylvania. Find competitive rates on conventional, FHA, VA, and jumbo loans from experienced professionals.
Available Loan Programs in Allentown
Featured Mortgage Lenders
Fulton Mortgage Company
Fulton Mortgage Company
Fulton Mortgage Company stands out as one of the top-rated local mortgage lenders in the Lehigh Valley region, earning exceptional customer satisfaction ratings for their personalized service and competitive rates. As a division of Fulton Bank, they combine local expertise with institutional strength, offering a comprehensive range of mortgage products including specialized construction loans. Their team of experienced loan officers provides dedicated guidance through the entire home financing process, with particular strength in first-time homebuyer programs and local market knowledge that makes them a preferred choice among Allentown area residents.
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First Northern Credit Union
First Northern Credit Union
First Northern Credit Union has been serving the Allentown community for over nine decades, building a sterling reputation for mortgage lending with highly competitive rates and exceptional member service. As a not-for-profit financial cooperative, they consistently offer lower fees and more favorable terms than many traditional banks. Their mortgage specialists provide personalized consultation and guidance through every step of the home financing process, with particular expertise in helping first-time homebuyers navigate the complex mortgage landscape. Their deep community roots and member-focused approach make them a trusted choice for Allentown homebuyers.
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Customers Bank
Customers Bank Mortgage Division
Customers Bank has established a strong mortgage lending presence in the Allentown market, earning high marks for their efficient processing and competitive jumbo loan products. As a regional bank with significant Pennsylvania operations, they combine local decision-making with sophisticated lending capabilities, particularly excelling in jumbo mortgages and construction lending. Their digital mortgage platform streamlines the application process while maintaining personalized service through local loan officers. The bank's commitment to responsive service and competitive pricing has made them a growing force in the Lehigh Valley mortgage market, with particular strength in serving both primary residence and investment property financing needs.
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Frequently Asked Questions
Common questions about mortgage lending in Allentown, PA
Are there any special first-time homebuyer programs available in Allentown, PA?
Yes, the Pennsylvania Housing Finance Agency (PHFA) offers several programs, including the Keystone Home Loan and the Keystone Government Loan, which provide competitive interest rates and down payment/closing cost assistance. Additionally, the City of Allentown itself administers the HOME Investment Partnerships Program, which can offer deferred, forgivable loans for down payment and closing cost assistance to income-eligible buyers purchasing within the city limits.
How does Allentown's property tax structure affect my mortgage payments?
Allentown is located in Lehigh County, which has a county-wide property tax assessment system. The city's millage rate is relatively high compared to national averages, which means property taxes are a significant component of your monthly escrow payment. It's crucial to get an accurate tax estimate when budgeting, as taxes can add several hundred dollars to your monthly mortgage payment, especially on higher-valued homes.
What is a typical down payment needed for a home in Allentown's current market?
While 20% down is ideal to avoid private mortgage insurance (PMI), many buyers in Allentown successfully purchase with 3%, 5%, or 10% down using conventional or FHA loans. Given the competitive but more balanced market compared to larger metros, sellers often accept offers with lower down payments, especially when paired with strong pre-approvals. Local first-time buyer programs can also reduce the effective cash needed at closing.
Are there specific neighborhoods in Allentown where certain loan types (like FHA or VA) are more challenging to use?
While not widespread, some older neighborhoods in Allentown, particularly those with homes built before 1978, may have properties that don't meet FHA/VA minimum property standards (MPS) due to deferred maintenance, peeling paint, or faulty systems. A thorough appraisal is key. Generally, homes in suburbs like Salisbury Township or newer city developments more easily satisfy these requirements, but a knowledgeable local lender can guide you on specific properties.
How do local closing costs in Allentown compare, and are there ways to reduce them?
Closing costs in Pennsylvania, including Allentown, typically range from 2% to 5% of the home's purchase price. Key local costs include the state's 1% realty transfer tax (split between buyer and seller) and local municipal/ school taxes that may be prorated. You can potentially reduce net costs by negotiating for seller concessions (common in a balanced market), using lender credit options, or applying for the closing cost assistance available through the PHFA or City of Allentown programs.
Nearby Cities
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Why Choose a Mortgage Lender in Allentown?
Local Market Knowledge
Lenders who understand Allentown's housing market can offer better guidance and competitive rates.
Multiple Loan Options
Access to conventional, FHA, VA, USDA, and jumbo loans tailored to your financial situation.
Proven Track Record
Work with lenders who have years of experience and hundreds of satisfied customers in Pennsylvania.
Ready to Find Your Perfect Mortgage Lender?
Connect with top-rated mortgage professionals in Allentown and get competitive rates on your home loan.