It can be done:
In the heart of the Great Recession, PHFA [Pennsylvania Housing Finance Agency] stayed active, doing about 4,000 loans with a value of $413 million in 2009, and 7,727 loans valued at $821 million in 2010.
How have those mortgages performed? In short, exceptional.
“Our foreclosure rate is around 1 percent,” Hudson said.
The secret sauce in regard to PHFA’s success is a combination of factors, including full underwriting, documented income and counseling. Also, since most homeowners can afford a mortgage but don’t have the money for a down payment, PHFA provides $4,000 in what Hudson calls “closing cost assistance.”