Which financing should I use on a HomePath property for a low down payment?  This is a
frequently asked question from buyers purchasing a HomePath property.  A borrower can use
any type of financing on a HomePath home.   However, they need to consider the following: 

1.     The borrower’s credit scores

2.     The condition of the property.  

HomePath offers low down payment, no appraisal and no mortgage insurance.  However, in
order to qualify for HomePath’s 3% down payment, borrower must have a credit score of at least
660.  For borrowers that do not have the minimum required credit score, they can utilize other
financing options.

The second consideration is the condition of the property.  Will the property qualify for VA or
FHA financing?  Both VA & FHA have property condition requirements.   If the property meets
VA guidelines, then VA is a better option.  VA offers zero down payment, low rates and no
monthly mortgage insurance.   Borrowers who are not eligible for VA and who do not have the
required credit score for HomePath should consider FHA if the property qualifies.  FHA offers
low down payment (3.5%), lower credit scores & low rates.   However, unlike HomePath,  
borrowers must pay an upfront mortgage insurance along with monthly mortgage premiums.  Also, USDA financing can be used. There is no down payment with USDA, but there are
property conditions, income and location limitations.