Home Buying in 32708>Question Details

John Lyell, Both Buyer and Seller in New Castle, DE

I'm not familiar with a homepath or usda mortgage. can someone enlighten me please?

Asked by John Lyell, New Castle, DE Mon Mar 7, 2011

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Alma Kee’s answer
Hi John,

If you're buying in Florida, I can highly recommend http://www.KristineBredeau.com with HomeBanc. She is very knowledgeable about both of these programs.

From my understanding the best rate on a HomePath will happen if you are able to put 5% down. You must buy a Fannie Mae owned foreclosed home. There is no cost to you for an appraisal (also none required so make sure you do not overbid because you will not have protection from an appraisal) and also no extra cost for PMI.

A USDA mortgage the property must be located within the rural boundaries and you also must qualify and cannot earn too high of an income. You can check your qualification and the address qualification direclty on USDA's website: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

There are many county programs that you may qualify for if your income is below the median income for your county and you are a first time homebuyer. http://www.Kristinebredeau.com can also see if you can qualify. You may be able to buy a house with little or no money down.
0 votes Thank Flag Link Mon Mar 7, 2011
As for the USDA mortgage, please read below for all the information you need.

USDA Mortgage Hub
100% USDA Rural Housing Loans
Serving all 50 states
Ph: 800-691-8826 (7 days a week)
0 votes Thank Flag Link Mon Jan 18, 2016
Hi John!

USDA is a low down or no downpayment program for buyers in rural areas. You don't have to be surrounded by cows or anything just an area designated as RURAL by the program. This is a very popular program in my area since my county is 100% rural.

USDA also has programs for rehab homes.

Here is the website for USDA http://www.rurdev.usda.gov/fl/

Homepath is a great program for purchasing foreclosed homes from Fannie Mae.

Some of the benefits are: Low Downpayment, No Mortgage insurance, No Appraisal

Here is the web-site to check it out and see which lenders are approved for homepath. http://www.homepath.com/

I hope that helped you out very much!

My website is below if you want to learn more about lake county and our 1400 lakes.
0 votes Thank Flag Link Mon Mar 7, 2011
Please speak with your lender, as these are financing options. Are you pre-approved with a lender? If not, that really should be your first step. It is a free conversation, they can show you where you are, what or if you qualify for, and all your options. If you dont know of a "good" local lender, try calling your bank as you already have a professional relationship with them. Best of luck.
0 votes Thank Flag Link Mon Mar 7, 2011
Hi John,

The HomePath® Mortgage and the HomePath® Renovation Mortgage are special financing programs that are available on many Fannie Mae owned properties. Visit http://www.homepath.com to find properties that are eligible for a HomePath® Mortgage .

USDA Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Visit http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to learn more about USDA mortgages.

Best regards,

Elva Wormley
Cobalt Financial Corporation
0 votes Thank Flag Link Mon Mar 7, 2011
USDA has a lower credit score threshold with 100% financing but is only available on rural homes (typically outside of a city limits or city metro areas), link to website http://www.rurdev.usda.gov/rhs/sfh/GSFH_Information/individu…

HomePath is available only on Fannie Mae owned properties (fannie foreclosures) and has a lower down payment which typically 3%, an FHA loan is 3.5%, link to website http://www.homepath.com/financing/index.html

Now both are adminstered by a local bank or certified mortgage broker, for these loans I use Scott Henderson at FBC Mortgage, email: SHenderson@fbchomeloans.com phone: 407-312-8679 , he's very knowledgeable on these and other types of loans.

Hope this helps,

Dave Lowe, Real Estate Broker
GRI, ePRO, Realtor (designations)

Family Values and Straight Forward Answers
Web Reference: http://OrlandoHomeStore.com
0 votes Thank Flag Link Mon Mar 7, 2011
A USDA mortgage is only one of two programs available today that provides 100% financing. The other one is VA. It is guaranteed by the US Department of Agriculture. However, to qualify for such a program first the property has to be considered in a certain rural area, and second your salary can’t be higher than a certain amount depending on your family size. Other requirements have to be met, just like any other loan program, such as a certain minimum credit score, minimum income and minimum 2 year employment history in the same industry. To find out more about the USDA loan go to http://eligibility.sc.egov.usda.gov/eligibility/welcomeActio…

The HomePath on the other hand is a conventional program offered through Fannie Mae, that provided up to 97% financing if you buy certain Fannie Mae foreclosures. Even though it provides 97% financing, it does not require Mortgage Insurance Protection(MIP) which is typically required on any conventional loan with over 80% financing. Another great feature is that it does not require an appraisal which is an area affecting many real estate transactions these days. The rate is typically higher than a regular conventional loan by about 1%. Like any loan program, there are minimum score, income and asset requirements. For more information go to http://www.homepath.com.

Then there is the regular FHA loan with 96.5% financing, 203K to improve the property with the same loan and others. I'll be happy to discuss your options if you call or send me an email.

Jose Morales
Florida Mortgage Coach
“We Coach You Through the Mortgage Process”
0 votes Thank Flag Link Mon Mar 7, 2011
I've included a link to the government web site that will help answer all of your questions about the loan product.
These loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
There is too much information to write here. Please follow the link.

I hope this helps. Once you've found your answer I would love to help you in your real estate needs.
0 votes Thank Flag Link Mon Mar 7, 2011
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