Newtown Square, PA Mortgage
Newtown Square, PA is a suburb of Philadelphia located in Delaware county, considered by most people to be a part of the Main Line. Less than 15 miles from Philadelphia, Newtown Square maintains a small town "main street" feel. There are many small businesses, mom & pop shops, recreational areas, and open space in addition to many large corporations that contribute to a strong local economy & job market. Though Newtown Square is a flourishing suburban setting today, it is still easy to find the historical roots of the town, which dates back to the 1600's as the oldest township in Delaware county.
From April 2013 to April 2014, there were 166 homes sold in Newtown Square with an average sales price of $539,633. The highest priced home in this time frame sold for $3,075,000 and the lowest priced home sold for $103,000. Homes during this 12 month time frame were on the market for 76 days. Newtown Square is a family-friendly area that has something to offer for every budget.
FHA loans in Newtown Square require only 3.5% down payment, all of which can come from gift funds. Also allowing up to 6% sellers assistance, the FHA loan program makes it possible to buy a Newtown Square home with little money out of pocket. Being in Delaware county, FHA allows for a maximum base loan amount of $379,500 for single family home buyers in Newtown Square.
FHA loans offer many benefits to Newtown Square home buyers. Rates are low, and are more forgiving of lower credit scores or previous credit issues than conventional loans. They are also assumable, which is a nice feature for home owners if rates rise in the future.
The one down side of an FHA loan is the PMI associated with these loans. With less than a 10% down payment, the PMI is expensive and permanent. Many buyers who use FHA loans will later refinance to remove the PMI for this reason.
Newtown Square, PA Conventional Loans
Conventional loans are another good lending option in Newtown Square, PA. Conventional loans require a 5% down payment, offer low rates, and typically have lower cost PMI than FHA loans. For those with 20% or more down payment, there is no mortgage insurance on a conventional loan. The maximum loan amount for conventional loans in Newtown Square is $417,000.
Conventional loans in Newtown Square also allow for sellers assistance to help a buyer with closing costs. With less than 10% down, a seller can contribute up to 3% of the purchase price of a home toward the buyers cost. With more than 10% down, contributions are capped at 6%.
Conventional loans are more sensitive to credit scores, so those with lower credit scores may see higher rates than those with great credit. PMI on conventional loans is also tiered on a sliding scale based on FICO score & down payment percentage.
Other Loan Programs
Newtown Square, PA VA loans are available for eligible veterans in Newtown Square and allow for up to 100% financing with a maximum loan amount of $417,000. VA loans also allow for sellers assist, so it's possible for qualified veterans to obtain the dream of home ownership with little to no money out of pocket.
Newtown Square, PA Jumbo loans are loans exceeding the maximum loan amounts that other programs are capped at. In Newtown Square, jumbo loans are available up to $3,000,000 with a large down payment. For certain jumbo programs, up to 90% of a home purchase can be financed with NO PMI. Typically, jumbo loans have slightly higher rates than conventional loans, but allow home buyers to finance a much larger amount of money. Jumbo loans in Newtown Square have very favorable rates, many times similar to those of conventional loans.
Newtown Square, PA Portfolio "Niche" products are those products that fit unique borrowers. Asset depletion programs, loans for foreign nationals, or for unique properties all fall into "portfolio lending". These niche products ensure that buyers with all types of backgrounds & financial situations can obtain a loan.
If you have questions on a loan product or program, you can get an immediate answer here.
Newtown Square, PA offers buyers the wonderful opportunity of home ownership in a small town setting close enough to enjoy the amenities of nearby Philadelphia and the Main Line. If you're considering buying or selling a home in Newtown Square, I'd highly recommend speaking with Peter McGuinn of ReMax. Peter provides top notch service & is an expert in the local market.
If you have any questions about a Newtown Square, PA mortgage, don't hesitate to give me a call at 484.680.4852 or ask an expert here. I specialize in residential home purchases AND refinances.