Financing Process
When looking to finance your home, many questions focus around Conventional vs. FHA Loans and Town Home vs. Condo. Let Coldwell Banker Home Loans help with any questions you may have when looking to buy or sell a home in Pittsburgh.
See the tables below for a comparison between these types of home loans and properties.
Conventional vs. FHA
| Conventional | FHA |
|---|---|
| Minimum 5% down | Minimum 3.5% down |
| Max Seller Concessions 3% | Max. Seller Concessions 6% |
| 5% borrower's own funds | All funds can be gifted |
| Rate is typically lower than FHA | Rate is slightly higher than conventional |
| No appraisal repairs, unless safety issue | Need to fix and inspect FHA appraisal repairs |
| Monthly Mortgage Insurance | Upfront MIP (1.00%) & Monthly MI (1.15%) |
| Need good credit scores | Higher credit tolerance, buyer can have credit bumps |
| Faster closings | Would like at least 30 days to closing |
| Max. Loan Amount is $417,000 | Max. Loan Amount $327,500 Allegheny, Beaver, Butler |
Town Home vs. Condo
| Town House | Condo |
|---|---|
| Owns house and land underneath | Owns contents only-has ownership in association |
| Usually pays a small Association Fee | Usually pays a higher Association Fee |
| Called a Planned Unit Development | Called a Condo Association or is Governed by Condo Laws |
| Association fee pays for routine maintenance of common areas | Fee pays for maintenance on roof, outside walls and common areas |
| Needs only to meet single family dwelling guidelines | Needs to be Warranted for Conventional and FHA approved for FHA |
| No pricing adjustments | Pricing adjustments depending on score and LTV |
| Regular Homeowners Insurance Required | Only requires content Insurance |
| Association carries Liability Insurance Only | Association carries a Master Policy for the building and Liability |
| Need By-Laws and Questionnaire | Need By-Laws, Questionnaire and Financials for the Association |
If you have any questions, please contact our senior mortgage advisor, Lisa Fleming, at 412-996-2448 or email, lisa.fleming@mortgagefamily.com. Just tell her that Julie sent you!
About Me
Julie Bissell
Real Estate Professional
Coldwell Banker
Office Location: Peters Township
3244 Washington Rd McMurray, PA 15317-6403
Direct: (724) 942-1200 x215
Office: (724) 942-1200
License# RS312292
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Disclaimer: All of the information provided here, while considered reliable, is not guaranteed. Buyer is exclusively responsible for verification of any aspect of this purchase that is material to buyer's decision making process. Not intended to solicit currently listed property. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Owned And Operated By NRT LLC.