HomePath is a fantastic home loan program for buyers who love to buy a fixer upper and who have very little money for a down payment or want to save their money to fix up the home. Here are the program benefits:
*You only need 3% down. Example-on a $275, 000 home, you need $7,500 in down payment to buy.
*No mortgage insurance premium. This can save you hundreds of dollars a month. Mortgage insurance premium is what you pay the bank to offset the risk to them when you put down less than 20%.
*No property appraisal. This makes getting financing significantly easier than from regular loan programs that require an appraisal (a report of what the current value of the home is based on comparable homes sold in the area). This also saves you the cost of an appraisal which is about $400-$500.
Here's an example of a home payment for a home that qualifies for this program:
$250,000 sales price for a condo or townhome.
2 bedrooms 2 bathrooms
1,000 square feet
monthly HOA fee $275
Interest rate of 4.5%
30 year fixed loan
Monthly Payment (total housing expense) =$1,795.
If you would like to get a list of homes where you can use this loan program, just me a call.
Happy house hunting!
Leanna
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