Do I need approval from a HomePath Lender in order to purchase a HomePath property? You can use any lender to finance a HomePath property. However, if you want the HomePath financing incentive, then you must use a HomePath lender. The benefits of HomePath financing are:
1. Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
2. No mortgage insurance
3. No appraisal fees
4. Eligible for HomePath Renovation Mortgage (Financing to fund both purchase and light renovations).
Should you decide to use a non HomePath lender, then you will not get above financing incentives. Nonetheless, keep in mind that depending on your circumstances, you may not qualify for HomePath if your credit score is less than 660. Further, you may not need HomePath:
1. If you are putting 20% or more down payment (then there would be no mortgage insurance for a regular conventional loan)
2. If you do not need to finance any light renovations.
Under above circumstances the no appraisal fee on its own would not be enough incentives to go with HomePath, since rates are typically a little higher than regular conventional or FHA.