Happy New Year everyone!
I'm on my way to locking up my first investment property in Charlotte, NC. I have 3 properties I'm looking at on the Homepath resource, and have submitted an offer for 1 already. I will purchase as owner-occupant, and transition it to a rental after the 1st year window of ownership has passed. While discussing my financing options with my loan officer, he informed me that the Homepath FHA financing option was discontinued in October of last year (2014).
I've been approved for conventional, lender paid mortgage insurance (LPMI) financing, which will eliminate my monthly mortgage insurance (~$40/mo) and increase my interest rate from 4.18% to 4.3% (extra ~$5/mo in mortgage payment). Even at a 5% down payment, this option looks far more attractive than the Homepath FHA 3.5% down payment product, but I just found it odd that Homepath is still listing properties and not continuing Homepath financing for them.
Does anyone have any insight/feedback on this topic? Thanks in advance!
Homepath financing no longer exist, but Homepath(FNMA) was never part of/related to FHA. FHA hasn't changed.
Your broker and Wayne are correct. Homepath financing ended October 2014.
5% down at 4.3% with no PMI is pretty darn good as long as it is fixed and not an interest only loan.
Thanks Wayne and Lucas! Yes, the loan is 30 yr, fixed, so just crossing fingers that offer is submitted!
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