How does the Homepath 10% work?

4 Replies

I have almost no experience in single family rentals.  I have one small complex but would like to pick up some more property.  I pretty much blew my stash on the apartment, and it will take some time to save another 30% for a down payment for something substantial.  Which brings me to these Homepath properties.   I have looked at and do like a couple of them.  Please tell me if I have this right.  Here is one of the properties I am looking at.

It is going for 85k.  Heres the break down I think I can rent the place for 900.

-Payment at 77,500 loan is a little less then 450 at 5.5%.  I will use my real estate commission to cancel out closing costs for simplicity in my example.  

I am now looking at hitting the 50% rule. Is it true that there is no PMI for these Homeopath mortgages and also is a 5,5% rate realistic or are they generally higher. I also live in a very small town is this a loan product almost all banks do or is it difficult to find a lender that does these loans?

Thanks guys,

Eric

Well dog-gone!  So this whole 10% down is a thing of the past.  So when you buy one of these home path properties you have to use conventional financing or whatever?  That is not nearly as intriguing, it kind of bums me out. 

Thanks for the heads up, 

Wow I did not know that. Homepath is still advertising the 10% down for investors and 5% for homeowners. Kind of misleading as I was under that assumption that this was a great deal and looking forward to acquiring a homepath home through them. 

This was my thinking.  I have seen these homes advertised with the 10% down Shtick as well.  Here is an article I found about how this mortgage has ended! In case anyone else gets confused like I did.

http://www.spokesman.com/stories/2014/oct/05/tom-kelly-end-of-homepath-signals-healthy-housing/