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HomePath - Is there a closing cost max of 2.5% of property value? (not speaking of down payment)

Property info: $70K, Condo, HomePath approved, Not FHA approved.
Me: I have 5% down payment for sure, maybe more depending on closing costs. I need something along the lines of HomePath or FHA for financing. 

I am trying to get a HomePath mortgage (pre-approval at least for now as I want to put in an offer this weekend). I went online and did an FHA pre-approval (there was no HomePath option) with AimLoan and that was pre-approved per their automated system, however I realized after the fact that the condo I am looking at is *not* FHA approved. I will call them tomorrow to switch the pre-approval to HomePath if possible, except see my hiccup below...

So, I start looking online for places that have pre-approval apps online for HomePath as the option (pulldown menu, selection, etc). I didn't notice any so I called Nationstar Mortgage directly to start with. The Nationstar person tells me that the mortgage is too small (though they could lend for it) but because the amount is so small that 2.5% closing cost MAX rule would be far exceeded with their fees and therefore not approved because CT requires escrow (I would escrow anyway, because it's smarter for me, personally).

I didn't realize that 2.5% closing costs were the MAX for HomePath? Is this true? I hate to doubt what someone specializes in, but in all of my Googling I have not found that anywhere. 

NOTE: I am aware of ALL the HomePath requirements - please don't repost the HomePath link here or talk about FHA vs HomePath. I am well aware of these things, but for the life of me can not find anything on this 2.5% closing maximum.


Also, random other question, how do you find a lender you like, that can work with you and the property, without having your credit pulled 800 times?
  • May 31 2012 - Hartford
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