Home Buying in Chicago>Question Details

Guerochavez88, Home Buyer in Mount Prospect, IL

Homepath vs FHA??

Asked by Guerochavez88, Mount Prospect, IL Sun Aug 24, 2014

Hi, andrew here interested in buying a house in cicero il. I am a first time home buyer and not sure if i should go for fha loan or homepath. I have been reading a lot on both and kind of know the differences. With fha i can also get welcome home il which helps out with 7500 downpayment assistance. I have been at my job for 7 years i have three credit cards one with 3900 limit and only owe 160 one with 1000 limit and owe 100 the last one with 2000 limit and owe 90 i have no late payment in any of them and have no installment loans. have arround 10,000 in savings account. current monthly income arround 4000 which varies a bit up or down due to weather.(work in construction). Last time i cheked my credit was a year ago was 740. If i go with fha and get the 7500 downpayment assistance (considering i approve for loan.) Is there assistance for homepath financing?

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Hi Andrew,
You're going to have a lot of questions that deserve answers. Sometimes we can be helpful, other times you're going to need local professionals familiar with your file, the home you're interested in and the local market.
FHA can be used on any home and many condos. HomePath is strictly for a few homes that FannieMae has taken back as a repossession. HomePath homes may have some clean up and even improvements done to them. Last I knew a HomePath loan didn't require mortgage insurance, but the rates were slightly higher.
When you find a home, if it qualifies for HomePath your lender can run both scenarios for you to see if there is a clear benefit. To state absolutely one is better without the specifics of the home, price and your goals probably doesn't make sense.
1 vote Thank Flag Link Sun Aug 24, 2014
Andrew:
I believe you can get Welcome Home Illinois with Homepath as well. I am happy to double check. However, Homepath is ending in early October 2014, so you need to have your offer in, if not accepted by Fannie Mae, by 9/30/14. Also, the lender must be approved to offer Welcome Home Illinois, which my company is.

As far as which one to do, another key is the condition of the property. Homepath doesn't require an appraisal or mortgage insurance, so condition isn't part of underwriting. If the property you are targeting is Homepath approved and needs work, your only options are the Homepath financing program or a Renovation program, allowing you to financing the repair costs. Fortunately, I can offer the 3 major renovation programs available: Fannie Mae HomeStyle, Fannie Mae Homepath Renovation and FHA 203k. Fannie Mae will not repair the home so it meets Fannie Mae or FHA guidelines prior to closing.

I would be happy to help further. Feel free to contact by phone (847-815-8229) or email (lbernstein1130@gmail.com) at your earliest convenience.

Thank you. Larry Bernstein. NMLS# 280597.
0 votes Thank Flag Link Sun Sep 14, 2014
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