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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California

Homepath Vs FHA; What you need to know

Effective April 18th, FHA will once again raise their monthly mortgage insurance.  With the new raise Homepath is the clear winner.  Let’s look at the math

 Homepath   VS       FHA

Purchase price:      $ 250,000           $250,000

Down payment:   3%     3.5%

Upfront MI financed into loan   0     1%

Loan Amount:     $242,500       $243,662

Est Rate (No points)    5.875%      4.875% 

Principal and interest payment    $1434          $1289

Monthly mortgage insurance 0  $233

Est taxes and insurance    $360    $360

Total Monthly Payment   $1794 $1882  

Beyond the monthly savings Homepath does not require an appraisal.  Why pay more for a potential headache?   Also, with Homepath investors and 2nd home buyers can put down as little as 10% with no mortgage insurance.    Homepath is the way to finance Fannie Mae foreclosuresJ

For more information and to qualify contact The Ready Bell Group at Mason McDuffie Mortgage

Jennifer Ready , NMLS #247743     Julie Bell, NMLS#240206

707-478-0637  & 650-224-6522          415-378-2536

jready@mmcdcorp.com jbell@mmcdcorp.com

www.thereadyway.com www.readybell.com   



By Amy,  Sat Apr 14 2012, 23:59
Jennifer, Thanks for the comparison. Can California down payment assistance be used in conjunction with HomePath financing?
By Michael Smith, MBA, MPM,  Mon Apr 16 2012, 09:55
Hi Amy, Homepath is only for Fannie Mae REOs. 100% "as-is." There is no appraisal nor mortgage insurance and as Jennifer has described, HomePath is a great loan program. However, with no appraisal and "as-is" you will not be able to get down payment assistance with this type of loan program. However, if you have a 640 score and meet family income requirements, you can still take advantage of FHA with CHDAP which would bring the total down payment to 1/2% of the sales price.

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