Some agents and Loan officers will tell you the rate is higher. It often is, BUT is offset by the lack of mortgage insurance and the lack of the UFMIP fee required on FHA loans. Usually the payment is about the same.
As far as bank fees go, that would be lender specific. Give me a call or shoot me an email and I can chat w/ you about this product as I do several of these a month.
Here are the highlights of this unmatched program that we've had succss with closing deals.
1. NO Mortgage Insurance
2. 5% down (declining market is NOT applicable !!)
3. 30 year fixed rate (5.500% estimated)
4. NO payment until the 6th month after closing. (Bank is taking the hit, and I confirmed this with a closing)
5. NO origination fee, and NO junk fees at all !!!
6. single family home or townhome eligible
7. 680 credit score
** FHA or FNMA can not touch this program. It is truely remarkable, and is certainly a way this bank (BBVA-Compass) has demonstrated giving back to the communities it serves instead of always taking.
The Sr. Mortgage Banker that my staff in these area's is using is Tom R. Callahan and you may reach him at (904) 591-6722 or email firstname.lastname@example.org
Take full advantage of this program and save your clients a lot of money on not having the new FHA 2.25 MIP + .50 monthly to pay which is totally ridiculous!!
Good luck selling and shopping for the right home. DB
Check out Home Path usually offered under Fanny Mae bank repos. No mortage insurance, also there is no appraisal fee. However interest is a bit higher. Maybe USDA also but that is area driven for rural areas.