All the points listed below are great to know when comparing FHA to Homepath. I wanted to point out one additional item. Even if you're shying away from the Homepath loan because it's 1% higher in rate, take into consideration that if you happen to have an accepted offer where the seller gives you a large credit towards closing costs, you could apply those funds to buy down the interest rate. Now, you're in a situation where you are going as low as 3% down with an interest rate that is possibly in the 4% range. Not a bad deal when you're not financing the UFMIP and the monthly MI with FHA loans and you're now at a rate that is comparable to FHA rates.
Best of luck to you.
First Capital Mortgage
Direct: (310) 434-1718
Cell: (310) 995-0975
Best of luck!
The important thing to do is to contact a HomePath lender and do a side by side comparison:
HomePath with no Mortgage Insurance
FHA with Mortgage Insurance
Also, FANNIE MAE offers the program so they like to take sales that have HomePath loans.
Hope this helps,
Mark & Kari Shea
Shea Real Estate
Although from my understanding the credit guidelines are more strict than FHA and some clients might not qualify...
Realize this, though. There is no appraisal and there is no PMI. The over 80% LTV is higher in rate to compensate for the lack of the MI.
Also, you can get a 100% gift and up to a 6% contribution from the seller even up to the 97% LTV.
You can price the HP rates live at my website, usloans.com
DRE Real Estate and Mortgage Broker
If a property can be financed through FHA both the rate and fee's will be much less. Even though FHA has the monthly mortgage insurance.