I am interested in buying a townhome and was wondering if their were any differences in obtaining a mortgage besides the price. I would be a first time buyer. Single.
RE: Townhomes vs traditional Roni, Are you a member of a credit union? 1. I would do a preliminary assement of what you qualify for monetarily and would go out and look at those properties within my budget. OR 2. I would go to a realtor and see if there are any assumable properties that are close to what you like. OR 3. I would look into VA/FHA foreclosures. These have lower qualifications standards. The current interest rate for a VA foreclosure is 8.5%. The last two options require anywhere from $500 to $5000 down payments and there are some that require $0 down payments. Good Luck to you.
RE: Townhomes vs traditional The financing is exactly the same for a townhouse vs a house. The townhouse is considered attached and the house is considered detached. As a first time buyer you may qualify for the first-time homebuyers programs. These programs allow you to contribute a small down payment, and can even cover things like closing costs. Look to lenders affiliated with Fannie Mae and Freddie Mac (the groups that lenders go to for funding), or to the Federal Housing Administration to find the right program for you.
RE: thanx roni, here is something I actually know about!!! =) Double check this information with your lender BUT I understand that the only problem you may encounter with getting a loan on a townhouse/condo is whether or not the complex complies with the FHA standards... I'm assuming that is the loan you'll be going for; FHA credit qualifications are significantly relaxed, I think the minimum score has to be 580 (hey, I was approved for one if that tells you anything). The two main reasons that FHA may not approve a complex is 1.)if it is too new to have been rated by them and 2.)if the ratio of renters to owner-occupants exceeds their guidelines. I think it's something like 25/75. My credit challenged clients (I'm a real estate broker) have found condo purchasing difficult b/c few (at least in my market) are FHA approved. On the other hand, houses are not subjected to this ratio.
