Dimps, Home Buyer in Pembroke Pines, FL

Can you purchase a homepath home with a fha loan?

Asked by Dimps, Pembroke Pines, FL Sun Aug 14, 2011

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15
We have assisted buyers purchase Fannie Mae owned homes using FHA insured loans. The trade-off between HomePath and FHA is 3% vs 3.5% down, interest rate variations, and PMI. The home must meet FHA condition guidelines. If it's a condo or a townhouse the community would have to be an FHA approved community. If your FICO is poor, FHA will probably be a better option. Ask for seller paid closing costs if you need them. ...and if you like this reply, please give it a "thumbs up" or "best answer".
10 votes Thank Flag Link Sun Aug 14, 2011
I do not know what the question is referring to... We own a home and believe that makes us ineligible for FHA. I wanted loan I could pay back immediately after selling the home we live in now. I We wanted it to be "sure" we would be able to pay any fees we did not anticipate. That is all. A short term loan just for "back-up". Does not seem worth all this trouble.
Flag Thu Mar 10, 2016
We are applying for a "Back to Work" FHA loan due to Bankruptcy. Can you get a Homepath mortgage through fha? Trying to find ways to cut costs and this allows you to get rid of PMI.
Flag Wed Feb 5, 2014
Thanks that was very helpful.
Flag Thu Jan 30, 2014
Yes you can purchase a homepath home using an FHA loan.. Speak to your loan officer, they'll be able to get you a pre-approval letter to submit with your offer. If you don't have a lender yet, I'd recommend The Lenders Network. They'll refer you to a few lenders that can help you with your loan.
6 votes Thank Flag Link Sat Jun 21, 2014
First off, is the home a Bank owned property, in this case, owned by Fannie Mae? If not, then Homepath is not an option, as it's only available for Fannie Mae owned homes. If the appraisal describes any needed repairs, then FHA will require them to be completed before they will even fund the loan. If the property is owned by Fannie Mae, then you will want to look at the HomeStyle loans, or FHA 203k loans (if it's not Fannie Mae owned). These 2 loan programs are Renovation type of loans, which you can build the costs of the repairs into the loan amount. If you can go with HomeStyle, then typically, the Fannie Mae program will be less expensive, when you view the monthly (and FHA's upfront MI) mortgage insurance.

Ask for seller paid closing costs if you need : http://fhamortgageinfo.com/fha-vs-conventional-loan/
3 votes Thank Flag Link Fri May 22, 2015
You have already received several correct answers to your question. But let me emphasize the no appraisal benefit of a HomePath home. The savings in the appraisal fee is just a small benefit. The fact that an appraisal is not required with a HomePath could be the difference between closing or not at all. With the FHA loan you will need to do an appraisal. Anything that the appraiser finds wrong with the house needs to be fixed BEFORE closing. Being a Fannie Mae(or any lender's) foreclosure, they will most likely won't fix it which will kill the deal. On the flip side the 3% down version of the HomePath carries a much higher interest than an FHA loan. But in some cases depending on the loan size, that may very well be offset by FHA's Private Mortgage Insurance(PMI) payment. The HomePath rate is slightly better by putting 5% down on the HomePath if you can afford it. Tell your loan officer to do the numbers with both programs(I can do them for you). However, if the property has some issues and your are aware of them and you have a pretty good idea how much it will cost to repair them you may have not choice but to go with the HomePath because the FHA lender won't let them go.

Jose Morales
Florida Mortgage Coach
NMLS #:225888
“We Coach You Through the Mortgage Process”
561-432-9237
info@floridamortgagecoach.com
1 vote Thank Flag Link Sun Aug 14, 2011
Yes, however, the Homepath has two BIG advantages over FHA:
- no appraisal needed (this can save you around $400)
- only 3% down vs FHA needs at least 3.5% down

Also, ask for closing costs assistance! Often they will pay up to 3.5% of your closings costs, sometimes more. Make sure your agent negotiates a good deal for you!
1 vote Thank Flag Link Sun Aug 14, 2011
First off, is the home a Bank owned property, in this case, owned by Fannie Mae? If not, then Homepath is not an option, as it's only available for Fannie Mae owned homes. If the appraisal describes any needed repairs, then FHA will require them to be completed before they will even fund the loan. If the property is owned by Fannie Mae, then you will want to look at the HomeStyle loans, or FHA 203k loans (if it's not Fannie Mae owned). These 2 loan programs are Renovation type of loans, which you can build the costs of the repairs into the loan amount. If you can go with HomeStyle, then typically, the Fannie Mae program will be less expensive, when you view the monthly (and FHA's upfront MI) mortgage insurance.

Ask for seller paid closing costs if you need : http://fhamortgageinfo.com/
0 votes Thank Flag Link Wed Jul 22, 2015
Dimps, I suggest you opt instead for the Homepath loan. In addition to removing the stress of the appraisal process, it will allow you to bid above what the appraisal price would be. Because we routinely see multiple offers - even on regular sales - in Pembroke Pines, you probably will need to offer a bit higher than the likely appraised valuein order to actually get an offer accepted. I've been helping a couple who have made multiple offers - frequently at asking price, who kept losing out to those with either cash, or the ability to pay 10-20K over appraisal with a conventional loan.

While this may seem insane - it probably will prove financially wise in the end. The houses they were making an offer on were appreciating at about 3K per month. So it will only be 3 months before those crazy offers start looking like a good deal.

Let me give you some statistics:
153 foreclosures sold in Pembroke Pines in the last year.
72 of them sold for cash
55 of them sold with a conventional, va, or other financing.
26 of them sold with an FHA loan

So you're at a real competitive disadvantage. I only looked at the single family homes, but the numbers will be worse when you start looking at condos.

If you want to discuss this, feel free to give me a call.

Ann Ryan
Keyes
786-332-7042
AnnMoffettRyan@gmail.com
0 votes Thank Flag Link Sun Jun 22, 2014
Dimps,

Yes but then you will need an appraisal to be done. With Homepath, no appraisal, no problem. Call me to find you the home that suits your criteria and pricepoint the best.

Thanks Dimps,

Victor Tarin
305.510.2782
0 votes Thank Flag Link Sun Aug 11, 2013
I am calculating the costs of two homes in my area FHA vs. Homepath right now. The FHA w/ PMI still comes out lower payments overall because the Homepath interest rate is around 5 % (depending on your circumstances) and the FHA is 3.5%. The difference is low enough that if you could only purchase the property through Homepath because of it's condition, and you really want it, it may be worth it. One issue may also be that Homepath allows a very low amount of personal debt. FHA is more flexible in this area. My car loan puts me out of it....
0 votes Thank Flag Link Thu Mar 28, 2013
Learn all the facts from your lender. Occasions do exist with the Homepath loans being slightly higher interest rate compared to fha!
0 votes Thank Flag Link Tue Oct 18, 2011
Dimpa, yes you can. But a Homepath loan will be better.

Goodluck.
Perry
0 votes Thank Flag Link Sun Aug 14, 2011
You can a long as the house meets FHA requirements. Your loan officer or agnet can assist you with a list and your agent should be able to work with the listing agent to see if it will pass fha appraisal prior to you making an offer.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Aug 14, 2011
Absolutely if the home meets FHA guidelines as far as condition and if it's a condo or a townhouse the community would have to be an FHA approved community. Good luck!
Web Reference: http://www.homesbyjm.com
0 votes Thank Flag Link Sun Aug 14, 2011
Absolutely yes! However, you may find it more advantageous to use Fannie Mae's special HomePath financing program. This program is offered by a large group of lender. This has many nice features for you as a buyer, low expenses as there is no appraisal necessary and even though you can put down as little as 3%, there is no PMI (private mortgage insurance) premium. If your credit is good or better, definitely investigate this - a good mortgage broker will help you decide if your credit isn't so good. The interest rates can be a little high for low credit scores.

Either way, definitely check it out. If you need any help in finding a Fannie Mae property, please let me know.

Best of luck,

Angela
Tel: 954-816-7996
Villa G Realty, Inc.
Web Reference: http://www.villagrealty.com
0 votes Thank Flag Link Sun Aug 14, 2011
Sure you can purchase a homepath property with an FHA mortgage. In addition, homepath offer special financing on some of their properties if you choose homepath financing. To learn more or speak with a Realtor feel free to give us a call...786-704-8482.
0 votes Thank Flag Link Sun Aug 14, 2011
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