For folks seeking mortgages in Sonoma County, Homepath Loans offer a sound alternative financing tool.
Buyers in the marketplace today are looking mainly at foreclosures. Mortgage Aggregator Fannie Mae offers a unique home loan program called HomePath for REO properties. These Homepath Loans= no appraisal, no mortgage insurance and they allow as little as 3% down. Presently, Fannie Mae is offering 3% seller paid concessions for closing costs for anyone that purchases a Fannie Mae owned property with a Homepath Loan. Fannie Mae is also offering 1% commission bonuses to realtors to help move inventory. To find out if a property is owned by Fannie Mae that qualifies for Homepath financing, buyers need to visit Homepath.com.
Homepath Loans offer a competitive advantage to borrowers because there is no appraisal required. The value of the property is determined by the purchase contract. The other unique feature is mortgage insurance is not required even with putting as little as 3% down.
Investors in the secondary market have priced these loans approximately .75% higher in rate than conventional or FHA loans. Put another way, the mortgage interest rate on a Homepath Loan will always be approximately 3/4 of a percent higher commonly referred to as risk based pricing.
Compare a Homepath Loan to any other loan program, and you will see the Homepath Loan, makes a decent home mortgage choice.
Buyers only have a handful of available loan product including FHA loans, standard conventional loans (which is where Homepath Loans fit in) and for the few veterans out there,VA loans. Let’s compare a Homepath Loan to a common FHA Loan. Assumptions: $275,000 Purchase, 3% Down for Homepath, 3.5% on the FHA.
Homepath Loan
275,000 Purchase Price
3% Down Payment = $8,250
$266,750 Loan Amount
Rate 5.0%
Principal Interest Payment $1,354.66
Hzrd Insurance Payment $65.00
Property Tax Payment $286.46
Total Payment 1,706.12
Now, lets look at the FHA Loan
275,000 Purchase Price
3.5% Down Payment = 9,6250
$265,375 Loan Amount
1% UFMIP $2,653.75
Financed Loan Amount $268,028.75
Rate 4.5%
Principal Interest Payment $1,358.06
Mortgage Insurance Payment $254.31
Hzrd Insurance Payment $65.00
Property Tax Payment $286.46
Total Payment $1,963.83
The Homepath Loan saves the home buyer seeking a Sonoma County Mortgage $257.71 per month or $92,776.60 over the life of the loan respectively. The Homepath Loan in this case, is dramatically lower even though the rate is higher.
Consider a Homepath Loan for your next real estate transaction, you’ll be glad you did.
Homepath Loans can be for primary residences, second homes as well as investment properties. These loans offer flexible financing with the ability to support a faster close of escrow. The interest rates on these mortgages change on a daily basis as well and the loan programs that are mainly offered are 30 year fixed-rate loans and 15 year fixed-rate loans.
So if you are looking for a mortgage in Sonoma County, CA consider this particular type of financing. You could always give me a telephone call Scott Sheldon, Santa Rosa mortgage lender. Sonoma County Mortgages offers the best interest rates with the most competitive Homepath Loans available.
