FHA requires 3.5% down. Homepath requires 3%. FHA has mortgage insurance added to the payment. Home path has not Mortgage insurance. HOmepath interest rates are usually higher than FHA (but normally payments are still lower becasue there is no Mortgage Insurance. Homepath financing is available only on homes that specify HomePath financing where most other homes can qualify for FHANov 21st 2011
HomePath is a foreclosed home owned by Fannie Mae. You can finance that home conventional financing with 3% down, no appraisal, and no monthly mortgage insurance. However the interest rate is much higher.. FHA is a government insured loan, 3.5% down, and monthly mortgage insurance, but better interest rate. Your payment will probably be lower on HomePath than FHA... WilliamAcres.comNov 21st 2011
If the home you are looking to buy is currently owned by FNMA, then Homepath is an option. FHA financing can be used on a homepath property. The big differences are FHA requires a minimum down payment of 3.5% of the purchase price, and Homepath only 3% minimum down. HomePath rates are higher, but there is no mortgage insurance required. FHA requires both an up-front MI than is financed and a monthly MI that becomes part of your payment. It is possible for the FHA payment to be higher than the HomePath payment. The big issue is that FNAM generally has more stringent qualifying requirements, where FHA generally is a little more liberal. The best thing for you to do is to find a local Mortgage Banker (not one of the big banks) and have them work up both scenarios using your actual credit scores, income, etc and see which one makes the most sense for your situation.Nov 22nd 2011
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