HomePath Or FHA

by Steven from Roseburg, Oregon, USA

Ask Kate: HomePath Financing or FHA Home Loans - Which mortgage program is best for buying a house? Hi Kate, My wife and I are considering buying a home. I have been looking at either a HomePath or FHA mortgage. Do you have any advice on which would be a better option for us?

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  • Currently, her FICO scores are in the 550-575 range. Mine are in the 620-650 range. We are disputing a couple of items on our credit reports, and I expect both scores to go up a bit.

  • I will make about $70000 this year, and she $25000.

  • We don't have a lot of money to put down. In fact, the down payment will probably come from a relative. I have about $1700 in 401k, but that is all our real savings.

  • We have a bankruptcy that is over four years old. Since then, she has a credit card that recently had some late payments, but we have a payment plan worked out, and we are trying to get them to remove the lates from her credit report. I have a credit card with no late payments reported, but with a high balance of $1200, limit was $1000. The account is closed now, but balance is paid down to about $750. Do you know which lenders would use my score over my wife's as it will be higher?

  • We have two brand new cars we purchased just over a year ago with perfect payment history, and we each have at least one car purchased prior to that with perfect payment history.

  • Lastly, the house we would like to buy is listed at $199,500. Is that realistic given our numbers? Monthly expenditure for car payments and credit cards is about $900.

As far as HomePath or FHA home loans, can you compare the two mortgage programs? Any information you could provide will be helpful.

Kate Answers: HomePath Or FHA - Which mortgage program is best for buying a house?

Hi Steven, Everyone is thinking about HomePath or FHA right now. The HomePath program, special financing available on Fannie Mae homes, features:

  1. 3% down payments from savings, gift, grant, qualified loan

  2. Fixed rate, adjustable rate and interest only options

  3. Less than perfect credit consideration

  4. Owner occupied and investor terms

  5. No mortgage insurance options

  6. No appraisal fees

Sounds good! So how do you decide, Homepath or FHA? Ask for a good faith estimate, the brain of every home loan process, to compare FHA home loans to Homepath financing.

Study the difference between the required down payments, interest rates and mortgage closing costs.

Ask about prepayment penalties and mortgage rate lock policies.

If you have a certain house in mind, does it qualify for Homepath... or FHA financing for that matter. Don't forget to ask how long each loan would take to process.

Your financial profile summary you have shared here will assist your lender during the mortgage pre-approval process. Add the paperwork from this handy Mortgage Information Planner to make your first appointment a breeze.

Near the bottom of this page, you will find links to pages on my website revealing secrets to FHA home loans. Use my articles to make your comparison of HomePath financing to FHA mortgages more complete.

In addition, by visiting FHA AND VA FAQs, you'll discover solutions based on inquiries from other home buyers and homeowners who come to my website.

Take a moment to bookmark HomePath Or FHA - Which mortgage program is best for buying a house? to your favorites so you can easily return in the future.

Steven, please come back and visit often. Help me spread the word by sharing my website with your friends. Remember, all of my information is free!

Best wishes,

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FHA vs Homepath
by: Jeanine from Ann Arbor, MI

Hi Kate, I wonder what is wiser, FHA or a Homepath loan?

I am approved to $179,000. Hard to find home that will suit our needs with FHA so stringent. Getting discouraged as I have been actively searching for 7 months!

My loan guy whom I really like claims he's not familiar with Homepath but has been at this for 30 plus years.

I'm out to save money like everyone else:! Thank you for your time, Take care, Jeanine

Hi Jeanine, Kate here.

Both HomePath and FHA offer competitive financing terms. FHA can be tough on property requirements and HomePath only offers financing on select properties.

So look at them as arrows in your quiver, not as either-or opportunities.

If you are not confident in your mortgage originator's experience in HomePath financing, you could shop for another lender. But try to get a referral from someone you trust because anyone can claim experience in certain programs!

Get more information on my website at Ask Kate about First Time Home Buyer's Programs and Information - HomePath, HomeSteps, FHA Loan Requirements and follow the links on the page to even more help.

Best wishes,

Kate

HomePath Program For HomeBuyers
by: Kimberly Brown

HomePath Mortgage Financing is available on Fannie Mae homes with the HomePath logo. Call us for more information. We lend in 26 states.

Note from Kate Ford: You can find Kimberly Brown along with her contact information in our List Of Mortgage Companies.

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You can also ask Kate about your mortgage at Ask Kate About Buying a House.

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