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Why is homepath better for me than fha? How strict are the qualifications?

by Phil_B_Gorman99732 from Wilmington, North Carolina. Sep 25th 2013 Reply


John Moran (TheHomeMortgagePro)
#8 ranked lender in Arizona - 658 contributions

Sorry, I missed that second question. The qualifications are not exceptionally strict compared to other mortgage programs. In fact, without an appraisal, some might consider them easier in some ways.

Sep 25th 2013
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John Moran (TheHomeMortgagePro)
#8 ranked lender in Arizona - 658 contributions

Hi Phil, Homepath has some advantages, but the main disadvantage is that it is only available on homes owned by Fannie Mae. FHA loans may be used for just about any property. The first advantage of Homepath is that it has no mortgage insurance, while FHA has both upfront and monthly mortgage insurance. Next, Homepath doesn't require an appraisal, while FHA will. And finally, Fannie Mae homes are sold as is, meaning it is possible to close the loan and make repairs after if they are necessary. FHA will require certain items to be repaired before close, which can be limiting, especially if the seller is not cooperative (in which case 203k may be the only option). I hope this helps Phil, please feel free to ask some follow up questions.

Sep 25th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

HomePath home loans do not require any upfront premium, FHA charges 1.75% upfront. HomePath does not have monthly mortgage insurance, FHA charges $112.50 per month for every $100K financed. HomePath financing is a conventional loan product, and most lenders require a 660 or above to qualify, so yes, the credit qualifications are more strict. Even though HomePath only requires 3% down, it's possible you would need to come in with more than that to pay your closing costs.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 25th 2013
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Joel Lobb (kentuckyloan)
#3 ranked lender in Kentucky - 192 contributions

Homepath does not require an appraisal,but the home has to be owned by Fannie Mae so you will be limited in your options.

Sep 25th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

HomePath is a nice program, but it is not necessarily better than FHA. Both have good and bad qualities... You need to sit down with a licensed mortgage broker in your area, give them a full application, determine your situation... Then they can breakdown the benefits of each program as to how it applies to your individual situation, and make the best loan decision for you and your family. Anyone who automatically says one is better than the other is someone you should run very quickly away from! www.Hom-Path.com

Sep 26th 2013
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Hi Phil, HomePath is a special program strictly for Fannie Mae owned properties that were foreclosed upon. The rates are actually higher than FHA but Homepath has no Mortgage Insurance, which can be a great advantage as far as a lower payment. Are you looking at foreclosures?Give me a call and we can cover the qualifications. 919-906-1373

Sep 25th 2013
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Please contact me directly to assist in your financing needs and questions. Please note my professional credentials to assist in your financing needs:o25 years of Mortgage Banking Origination experienceoConsistent recipient of National Leaders Club sales award for 12 straight years for a national mortgage lender and ranked nationally in the top 10% of over 2500 mortgage originators. oBuilt a start-up mortgage branch for a national mortgage lender from a ground floor operation to a profitable business expanding annual sales from $0 to $127 million in the first 3 years of operation. oAwarded $1 Million in Lending Authority with a national mortgage lender. Guaranteed Rate is the eighth largest mortgage company in the U.S., funding more than $14.7 billion in loans in 2012, and named America's No. 1 mortgage company by Mortgage Executive Magazine. I look forward to speaking with you.Thank you David Cecchi Vice President of Mortgage Lending david.cecchi@guaranteedrate.com www.guaranteedrate.com/DavidCecchi o: 980.265.8012 - m: 704.258.1246 - f: 773.516.6140 6100 Fairview Rd, Ste 353 , Charlotte, NC 28210 NMLS ID: 175670

Sep 25th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

It really depends, sometimes HomePath is NOT a better option. I've found that often FHA works out better for my customers so it is important to work with a lender who will help you evaluate both options. Others have highlighted the featurs of both. In general, if you are a well qualified borrower HomePath is probably better, if not FHA may actually work out better. I can help if you like, pdumouchel@primelending.com or 843-619-6025 I'm in SC.

Sep 25th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Several fine opinions given by other forum members should help you decide.

Sep 25th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Because there is no MI on the homepath program. FHA MI is 1.35% per year and 1.75% upfront. Homepath or a conventional loan is much better.

Sep 25th 2013
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Gregorio Denny (GVDenny)
#258 ranked lender in California - 380 contributions

Who ever told you Homepath was better? One may or may not be better but it's based on each individual. No one can tell you without knowing the details of your transaction.

Sep 26th 2013
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