FHA Loan in Lackawanna County, Pennsylvania — 3.5% Down for Scranton Area Homebuyers

Dynamic Funding Solutions helps Lackawanna County homebuyers access FHA loans in Pennsylvania. Lena Polnet — NMLS #17225, 28+ years in mortgage lending — serves borrowers across Scranton, Dunmore, Dickson City, and throughout Lackawanna County. FHA’s 3.5% down payment and flexible credit requirements make it the go-to program for Scranton’s first-time buyers and those working with older housing stock. Call (215) 364-7171 for a same-day pre-approval review.

FHA Loan Requirements for Lackawanna County Borrowers

FHA loans require a minimum 3.5% down payment with a credit score of 580 or higher. Borrowers with scores between 500–579 may qualify with 10% down. Debt-to-income ratios up to 57% are considered with compensating factors. FHA loans require mortgage insurance premium (MIP) — an upfront premium of 1.75% rolled into the loan, plus an annual MIP paid monthly. The FHA 203(k) renovation loan is particularly relevant in Lackawanna County given the region’s older rowhouse inventory — it allows buyers to finance purchase and renovation in a single loan. PHFA K-FIT down payment assistance is layerable with FHA for qualifying borrowers, bringing out-of-pocket costs even lower. Properties must meet FHA minimum property standards.

Why Lackawanna County Buyers Choose FHA Loans

Scranton and surrounding Lackawanna County communities have a predominantly older housing stock built in the late 19th and early 20th centuries — rowhouses and multi-family conversions that often need updating. FHA’s 203(k) program is well-matched to this market, letting buyers finance acquisition and renovation together rather than carrying a second loan. The area’s median home prices in the $140,000–$200,000 range keep FHA loan amounts manageable. Working-class and first-generation buyers are well-served by FHA’s 3.5% minimum, and Lackawanna County’s employment base in healthcare, education, and government supports stable income qualification.

The Pre-Approval Process in Lackawanna County

Lena Polnet reviews your last two years of W-2s or tax returns, recent pay stubs, two months of bank statements, and pulls a tri-merge credit report. For 203(k) loans, she also coordinates a HUD-approved consultant for the scope of work. Pre-approval decisions typically come within 24–48 hours. Everything is handled by phone and secure portal — no branch visit required. Call (215) 364-7171 to start same-day.

FAQ — FHA Loan in Lackawanna County

Can I use an FHA 203(k) loan to buy and renovate a Scranton rowhouse?

Yes. The FHA 203(k) standard loan covers structural repairs, roofing, plumbing, electrical, and cosmetic renovations. The limited 203(k) covers projects up to $35,000. Both are available in Lackawanna County and are well-suited to Scranton’s older housing inventory.

What credit score do I need for an FHA loan in Lackawanna County?

580 is the standard minimum for 3.5% down. Scores between 500–579 may qualify with 10% down. Dynamic Funding Solutions works with borrowers across a range of profiles and can identify compensating factors that support approval.

Can I combine PHFA K-FIT with an FHA loan in Lackawanna County?

Yes. Pennsylvania’s K-FIT program provides 5% of the purchase price as a forgivable second mortgage, which can be used for down payment or closing costs alongside an FHA first mortgage for eligible borrowers meeting PHFA income limits.

Get Pre-Approved for an FHA Loan in Lackawanna County

Call (215) 364-7171 or visit dynamicfunding.net to start your pre-approval. Lena Polnet works with buyers across Northeastern Pennsylvania and responds the same day.

Dynamic Funding Solutions, Inc. — NMLS #17144 | Lena Polnet — NMLS #17225 | Licensed in Pennsylvania and Florida | Equal Housing Lender