Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
so ive found a home i realy like, ive already been "preapproved" with wells fargo for conventiona fha or homepath...
the house ive fallen for is a HUD home, qualified for homepath mortgage financing (NOT a renovation mortgage) and is FHA insured with no repair escrow...
im trying to decide if it would be better to go FHA (since it is fha insured) or Homepath...the only think i do know is that homepath has no mortgage insurance whereas fha does.
obviously any offer would be pending inspection.
my mortgage guy here in ct cant help with fha or homepath financing because its out of state...so now im waiting on a replay to contact with a wells fargo branch in TN, but since id like to move forward with this quickly, i want to have a better idea of what i want to do first, ive looked online and the info is a little difficult for me to decipher...
also does anyone know what % closing usually is in mid tn (giles county)
I can't help you with the closing costs, but do want to offer a comment (or two).
It's true, Homepath does not have mortgage insurance, but it also does not have an appraisal. THAT is very dangerous in my opinion in our current market conditions. Where we are seeing a high percentage of appraisals come in lower than contract or list price, those Fannie listings go unchallenged are actually doingi a disservice to communities that aren't really recovering.
Then again, FHA has 1% tacked onto the loan amount, so you would be out that equity from day 1.
I haven't heard of anyone doing an appraisal with a Homepath, but I know if I were buying one, I would want to find out if the home was worth what I was buying it for.......If you have an inspeciton or HOA contingency, I would do everything I could to get a full blown appraisal before I removed those contingencies.
Does anyone else find it scary that the one agency that is up the creek is the only one not requiring an appraisal and not covered with mortgage insurance?
yes shane, it was listed on both but is now currently listed only on HUDhomestore.com, ive called the hud folks directly 3 times and they say the house is available under homepath financing...i asked why it was now only listed on one site and noone could give me a direct answer, but i called numbers form both sites and the property is available.
the property had a tax apraisal done early this year for double the current asking price and comps are higher than the homes current prices though theres very few comps in the area.
the PCR and ECR are listed on the home listing...and my offer will be contingent on home inspection...(and of course well and septic inspection which are required for the loan)
other details on the listing include
FHA Financing: IN (Insured)
Repair Escrow: $0.00
i have a pre-approval letter for homepath financing...it seemed to be the best way to go from my own research, and form the numbers my mortgage guy was giving me, the rate is a tiny bit higher than conventional but lower than fha, no mortgage insurance (yay for less money comming out lol) and the lower downpayment than i would need for a conventional.
i hope ive made the right choice in terms fo direction for financing...now its just playing the waiting game and hoping the home, septic and well inspections comes back within workable parameteres...
i can afford cosmetic fixes and i can handle fixes that can be done bit at a time, but i cant afford a new well, well pump or septic sytem...so everything is contingent of what they find...
HomePath.com are properties that are owned by Fannie Mae.
HUDHomeStore.com are properties that are owned by HUD - I don't believe that website lists home that are owned by anyone other than HUD.
HomePath financing is only available for Fannie Mae owned homes. HomePath financing doesn't require an appraisal and the reason it doesn't require an appraisal is because Fannie Mae owns the home, therefore if you are using the special Fannie Mae HomePath loan program to purchase a HomePath.com home, Fannie Mae is warranting the value of the home you are purchasing, thus no appraisal is needed.
If the home doesn't appear on the HomePath.com website, it is not eligible for HomePath financing. It is a requirement from every lender we do business with to have the printout from the HomePath.com website in order to process a HomePath mortgage.
It would be very, very weird for a home to be listed on both websites.
Who are these "HUD folks" you are calling directly? What is their name?
1-800-732-6643 (which is the number on homepath.com)
and (800) CALL-FHA from hudhomestore.com
i do know my pre-approval letter says conventional 30yr fixed...
and this is what i was told
The HomePath Mortgage Program offers a way for home buyers and investors to purchase a HUD home, or foreclosure property financed through FHA loans. The program offers special rates for HUD homes and also offers loan assistance in cases where a property is in need of renovation.
and
HomePath exists as a mortgage finance program that enables home buyers to take advantage of available HUD home listings.
mabe its not a homepath? the listing agent said its homepath approved, and i gave my mortgage guy and the underwriter the adress of the property...so im not sure now...odd...
i dont mind going conventional since theyll do 5% down on a conventional with my score...ugh, i hate all this mumbo jumbo...tis all french to me. lol
Last edited by foxywench; 05-11-2011 at 06:32 PM..
Yeah those are the correct numbers to Fannie Mae & HUD. Very odd. I guess it's possible that Fannie Mae & HUD could co-own a mortgage, as you can have Joe Smith & John Doe own a mortgage and then the home once they foreclosed, and if Joe offered a certain loan program and John offered a certain loan program, then both of them would accept it on a property they owned... so it's possible, but not probable.
I'd ask your loan officer how they know it's HomePath eligible if they aren't able to print the listing off of the HomePath.com website with the logo (the logo is key).
hmm, ill definatly call and ask first thing monday...
i shouldnt have much problem switching to fha or conventional if i need to....but ive even seen online in a few places it says you can use Homepath for HUD homes...
very oddness...
just hope this doesnt put a kink in the works, everythings already been pushed back once...
i was working with a broker here in ct, he told me to go ahead and find a property and blah blah...i told him from day one im looking to buy in TN and lookinf at homepath and fha and he told me no problems...
then once i found the prperty i wanted and send him the info he asked for it takes him 4 days to get back to me to tell me he couldnt help because he can only file for CT and ajacent states...
then it took another few days to get a returned call from the main office...and a week to get work from the underwirter for the actual pre-approval letter, that i was told was already all in precess before i took the trip to TN...and now ive got the preapproval letter and find out it might be no good cause homepath doesnt work with HUD...wtf...shouldnt the bank (being they are a homepath aproved lender) be ontop of this, especially since i gave them the property case # adress and even URL for the listing for their initial file ? i dont blame my agent because this isnt her listing, she just showed it to me and have been trying her dangest to get as much info as possible from the listing agent (who doesnt return calls or emails aparently)
but surely the bank should realize, hey this isnt a fannie mae listing, somethigns not right...and tell me this?!
grr...
i knew buying a home wouldnt be easy, but seriously...it feels like my future is in the hands of a bunch of monkeys...
i realy like this house, i realy want this house (assuming inspections check out) and i dont want to loose it because of a screw up...
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
