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Homepath Mortgage vs USDA Guaranteed

We got an offer accepted on a Fannie Mae property. We are preapproved for a USDA loan but got introduced to homepath financing.

We already spoke with the Homepath Lender and asked about interest rates because we cannot find ANY info on it on their website. He told us we should be looking around 4% but he will not know until we lock it. Does this sound correct?

The rate for the USDA we were told the same, around 4%...but there's a .4%"monthly fee"  and a 2% upfront "fee"...

are there any up front fees with the Homepath mortgage like there's no PMI? ( i mean an upfront fee like with FHA and USDA)


We would l like to decide this week on which loan to apply for.

ps:our middle credit score is 768 if that makes a difference
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October 29 2012 - US
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Answers (2)

Your lender should be able to give you a worksheet for both loans so that you can choose what works best for you. 

What percentage do you have to pay down? The USDA loan won't require a down payment, but will have an amount for MI that can be rolled into the loan, and also an amount that is paid monthly. The Homepath loan will require at least 3% down, and you won't have to do an appraisal. The Homepath loans tend to carry a higher interest rate (not sure why...Lenders?). 

Also, don't just ditch your lender you've already been working with, they may offer this product also. 
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October 29 2012
This is the time for you to discuss your options with your Buyer's Agent.
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October 29 2012
 
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