It might not be the best loan out there, but it certainly helps buyer's buy homes.
There is an argument to be made that the Home In 5 program is more of a marketing tactic than the best loan out there. As indicated by Brian Cardenas before the question was removed, the interest rate and points are set. Out of the 5% involved, 1% goes to the lender; 1% goes to the loan officer; and, 3% is available for your down payment. It sometimes makes better financial sense to do a regular FHA loan, as the amount paid to cover such things can be even higher using the interest rate set for the Home in 5 program.
REMEMBERâ€”lenders pay (or have available) more money for loans with higher interest rates. The Home In 5 program comes with an interest rate which is higher than you could get without it. So, once again, your best option is to find a good licensed mortgage loan originator and ask them to provide you with various loan scenarios to fit your needs.I hope this helps.
Bill Parker, CPA*
Sr. Loan Officer
*Licensed, no longer practicing
15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
Phone: 480-525-8496, EXT 743
MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.
If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter