Loan Programs

There are few milestones more exciting that purchasing your first home. More than just a roof over your head, your home is a place where memories are made, something you can truly call your own, and often is your most significant financial investment.

Whatever your next move is, PeoplesBank offers tailored mortgage and loan solutions aimed toward getting you into the home of your dreams.  From York to Hanover to Westminster to Lancaster and Harrisburg, we have loan options for all of your home financing needs in the South Central Pennsylvania and Northern Maryland regions.


To help determine the best loan program for you, consider the following:

  • How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.

  • How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage

  • Other factors to consider include:
    • Ability to qualify at market rates for loan amount selected
    • Anticipated term of occupancy
    • Possibility of significant rate changes
    • Existing up-front costs
Loan Programs Characteristics
First Time Homebuyer Program
  • Piggyback mortgage option with an 80% first mortgage and a simultaneous 15% second mortgage.
  • Rates on the first and second mortgages are fixed rates.
  • Borrowers do not need their own funds for down payment, the 5% down can be a gift.
  • No mortgage insurance required.
  • Seller concessions for closing costs are permitted in accordance with secondary market guidelines.
  • Median credit scores for all borrowers must be 700 or higher.
  • Debt to income ratio must be 45% or lower.
Fixed-Rate Mortgages
  • Interest rate does not change.
  • Principal and interest (P & I) does not change.
  • Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term.
  • Different loan terms are available (10, 15, 20, 25, and 30 year terms are available).
  • The shorter the term, the faster equity is built and the loan is paid off.
 Adjustable-Rate Mortgages (ARMs)
  • There is potential for the interest rate/ payment to fluctuate.
  • ARMs transfer to borrowers a portion of the risk associated with a changing economy.
  • In exchange for sharing the risk, ARMs offer borrowers initial interest rates that may be substantially lower than fixed-rate mortgages.
  • The lower interest rate may help borrowers qualify more easily; qualifying factors may vary.
Construction to Permanent Mortgages
  • We provide a mortgage to build your dream home that has a construction period of up to 9 months and will automatically convert to permanent financing.
  • The construction mortgage is a 3-1 ARM mortgage during the construction period with a fixed rate conversion option.
  • Financing is available up to 95% of the lesser of the appraised value or acquisition cost, and lot equity can be applied towards the down payment.
  • Borrower pays “interest only” during the construction period as the home is being completed.
  • Flexible draw schedules to work with any construction project.
Lot Loans
  • Loans to purchase the perfect lot so you can start planning for the new home of your dreams.
  • Flexible programs to meet any budget while you complete the plans for your new home construction.
  • Financing available up to 90% of the lesser of the appraised value or purchase price for borrowers with credit scores of 720 and above, and up to 80% for credit scores below 720.
  • Minimum credit score is 660.
USDA/Rural Housing Mortgages
  • Borrowers must meet income requirements in order to qualify for the program.
  • The subject property must be located in the areas designated as “Rural Housing Eligible”. Contact one of our Loan Originators for more details.
  • USDA mortgages are fixed-rate mortgages.
FHA/VA Mortgages
  • FHA mortgages are government guaranteed mortgages, require up-front and monthly mortgage insurance and are fixed-rate mortgages.
  • FHA mortgages allow the up-front mortgage insurance to be included into the mortgage. There are no income limits.
  • FHA mortgages require minimal or no down payment from the borrower. All of the funds for down payment and closing costs can be a gift.
  • FHA mortgages allow the seller to contribute up to 6% of the purchase price to closing costs.
  • VA mortgages require that the borrower is a veteran with eligibility. Allows for 100% financing and are fixed-rate mortgages.
  • VA mortgages require an up-front funding fee, which can be financed, but no monthly mortgage insurance premium.
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